Ulta Beauty Shares Early AI Assistant Results as Ecommerce Growth Outpaces Sales in Physical Stores

Why It Matters

Ulta’s digital acceleration shows how AI and social commerce can fuel growth beyond brick‑and‑mortar, signaling a shift for beauty retailers toward omnichannel personalization and new customer acquisition channels.

Key Takeaways

• Ecommerce sales grew mid‑teens, outpacing low‑single‑digit store sales.
• Ulta launched AI assistant built on Google Gemini Enterprise.
• TikTok Shop debut generated 5 million impressions and strong GMV.
• New partnerships with Uber Eats and Klarna expand delivery and BNPL options.
• Loyalty program reached 47 million members, up 4% YoY.

Pulse Analysis

Ulta Beauty’s first‑quarter results underscore the accelerating importance of online channels in the beauty sector. Net sales climbed 11.1% year‑over‑year to $3.16 billion, with ecommerce comparable sales expanding in the mid‑teens while brick‑and‑mortar stores managed only low‑single‑digit growth. This divergence mirrors a broader consumer shift toward digital discovery and purchase, especially among younger shoppers who prioritize convenience and curated experiences. By leveraging its extensive first‑party data, Ulta has been able to translate higher average ticket sizes and transaction counts into tangible top‑line momentum.

The rollout of Ulta AI, an assistant built on Google’s Gemini Enterprise, marks a strategic foray into agentic commerce. The tool enables shoppers to search, compare, and buy products directly through Google’s conversational interfaces, reducing friction and shortening the decision cycle. Early metrics suggest the assistant is boosting conversion rates, although the company remains cautious about scaling. For a retailer with a 47 million‑member loyalty base, AI‑driven personalization can refine product recommendations, anticipate refill needs, and deepen engagement—capabilities that competitors are racing to replicate.

Social platforms are now integral to Ulta’s growth playbook. The brand’s TikTok Shop launch generated over 5 million impressions and strong gross merchandise value, positioning the retailer to capture Gen Z attention and funnel users into its broader ecosystem. Complementary partnerships with Uber Eats for same‑day delivery and Klarna for interest‑free installments further blur the line between online and offline experiences. Looking ahead, Ulta’s guidance of 6‑7% full‑year sales growth reflects confidence that these digital investments, combined with new flagship concepts, will sustain its market leadership.