Ulta Beauty shares fell sharply in after-hours trading Thursday after the company reported mixed results for its fiscal fourth quarter, beating revenue expectations but narrowly missing earnings forecasts.

The beauty retailer said its earnings per share came in at $8.01, slightly below Wall Street’s estimate of $8.03, according to data from LSEG. However, revenue exceeded expectations, reaching $3.9 billion, compared with analysts’ projections of $3.80 billion.

Despite the revenue beat, investors reacted cautiously, sending Ulta Beauty shares down roughly 8% in extended trading following the report.

For the quarter ended January 31, Ulta reported that net sales increased 11.8% year over year, reflecting continued consumer demand for beauty products and the company’s ongoing merchandising and marketing initiatives.

Looking at the broader picture, the company delivered strong growth for the full fiscal year. Ulta reported net sales of $12.4 billion for fiscal 2025, representing a 9.7% increase compared with the previous year.

However, the company said its gross profit margin declined slightly during the quarter. Executives attributed the dip in part to the deleveraging of fixed costs and expenses relative to revenue, although those pressures were partially offset by lower inventory shrink and improved supply-chain efficiencies.

Ulta also provided its outlook for fiscal 2026, projecting net sales growth between 6% and 7%. The company expects diluted earnings per share to range from $28.05 to $28.55, with a midpoint forecast of $28.30.

That guidance came in slightly below Wall Street’s expectations, which had projected a midpoint of about $28.40 per share.

The company also forecast same-store sales growth of 2.5% to 3.5% in 2026, roughly in line with analysts’ estimates that anticipated growth of up to 3.5%.

Before the report was released, analysts had expressed confidence in Ulta’s performance. Oppenheimer analysts wrote earlier this week that they expected the company’s fourth-quarter results to be “solid.”

In a statement, Ulta Beauty CEO Kecia Steelman said the company’s financial performance reflects its continued efforts to enhance the customer experience.

“Our better-than-planned financial performance reflects our continued focus on serving our guests and consistently delivering great experiences through stronger execution, compelling new products, more seamless and convenient shopping experiences, and bold merchandising and marketing strategies,” Steelman said.

The earnings release also marks Ulta’s first financial report since Christopher DelOrefice took over as chief financial officer in early December, adding a new leadership dynamic as the retailer prepares for its next phase of growth.

Investors will now be watching closely to see whether Ulta can maintain its strong sales momentum while protecting margins and meeting growth targets in 2026.