Read through Ulta Beauty's full year and Q4 earnings. Many brands in our network sell into Ulta. Here are my reflections.

Key highlights:

1. Category mix is shifting. Skincare and wellness moved up 100 bps. The macro trend is real. Consumers are spending more on routines, clinical products, body care. That's happening at Sephora, Amazon, Target, everywhere. Ulta is following the share of wallet, and leaning into categories where its loyalty flywheel and mass-to-prestige model gives it a structural edge.

2. Top line remains strong. Full year revenue grew +9.7% to $12.4B. Comp sales up +5.4%, driven by both higher ticket (+3.3%) and more transactions (+2.0%). Space NK added incremental volume on top of organic growth.

3. Margins are under pressure. GM% expanded slightly to 39.1% from 38.8%, from lower shrink and better merch margins. But SG&A grew 17.4%, outpacing rev growth. Operating margin fell to 12.4% from 13.9%. The investment cycle is early but real: strategic investments, incentive comp, store payroll. Rev growth is a strong testament to this working.

If you are looking to sell through Ulta:

- Ulta is prioritizing categories that drive frequency. Skincare, wellness, and fragrance are gaining share. If you are into color cosmetics, you need a sharper differentiation story. The category is still meaningful; it’s just no longer growing.

- Operational readiness is table stakes. $435M in capex this year. 60 net new stores. Remodels across the fleet. They expect suppliers who can keep up. Clean EDI. On-time fulfillment. Consistent fill rates.

- Shrink improvement is a margin driver. Lower inventory shrink contributed to GM% expansion for the second consecutive year. Brands that help protect economics at the shelf level will be valued.

- Growth is moderating. FY26 comp guidance is 2.5% to 3.5%, down from 5.4% this year. A moment to reflect on their “acceleration phase.” Proving sustained velocity and repeat purchase matters more now than launch volume.

Ulta is an incredible $12.4B platform with 46M+ loyalty members and 1,500+ stores. The brands that thrive here are the ones that have their back end systems dialed in: working capital cycles, inventory turns, strong merchandising, etc. Ulta can unlock distribution. But sustained performance sits with brand operators.