Ulta Beauty, one of the largest beauty retailers in the United States, has announced plans to open a new flagship store in New York City’s Times Square. Scheduled to open in late 2027, the location is expected to serve as a landmark project that strengthens the company’s presence in one of the world’s most influential retail markets.
The announcement was made alongside the company’s fiscal 2026 first-quarter earnings report. Ulta Beauty exceeded Wall Street expectations for both revenue and profit, providing a strong foundation for continued domestic and international expansion.
Summary
- Ulta Beauty plans to open an experiential flagship store in New York’s Times Square.
- The store is expected to open in late 2027 and will focus on brand experiences, events, and immersive customer engagement.
- The company is accelerating its next-generation beauty retail strategy through TikTok Shop, AI initiatives, same-day delivery, and global expansion.
- Fiscal 2026 first-quarter revenue reached $3.2 billion, up 11.1% year-over-year.
Bringing Experiential Retail to Times Square
The upcoming Times Square flagship is designed as an experience-driven destination centered on brand engagement and events. In recent years, Ulta Beauty has increasingly redefined the role of physical stores, positioning them not only as sales channels but also as spaces where deeper customer relationships can be built.
President and CEO Kecia Steelman described the vision for the store: “This flagship store will be a vibrant, dynamic destination where technology, entertainment, convenience and our differentiated assortment come together to deliver immersive guest experiences and brand activations. This store will showcase next-level brand building and storytelling capabilities, unlock high-impact marketing through digital billboards, and drive greater awareness and loyalty with guests from all over the United States and the world.”
Located in one of the world’s most visited commercial and tourism districts, the Times Square store is expected to play a significant role in increasing brand awareness and visibility for Ulta Beauty.
A New Phase in Competition With Sephora
The move also represents a strategic step in Ulta Beauty’s ongoing competition with Sephora.
In New York, Sephora has established a strong presence with numerous locations across Manhattan and has built significant brand recognition among consumers. By contrast, Ulta Beauty has historically focused on suburban shopping centers. Its entry into Times Square marks a notable expansion into an urban, tourism-driven retail environment.
Accelerating TikTok Shop, AI, and Global Expansion
Competition in beauty retail increasingly extends beyond physical stores. As consumer shopping habits evolve, retailers are investing heavily in social commerce, artificial intelligence, and logistics capabilities to create seamless customer experiences across multiple touchpoints.
Ulta Beauty has been actively expanding its digital initiatives alongside its store strategy. During the first quarter of fiscal 2026, the company launched on TikTok Shop, aiming to strengthen engagement with younger consumers while increasing awareness and sales of its exclusive brands.
Steelman commented: “This new channel positions Ulta Beauty at the center of a critical discovery point and will enable us to spotlight our exclusive brands, build influence and fuel our marketing efforts, particularly with younger consumers turning to brand building.”
The company is also investing in AI-powered operational improvements and customer experience enhancements, while expanding same-day delivery capabilities. In addition, Ulta Beauty plans to build a new fulfillment center in Salt Lake City, Utah, to support future growth.
Internationally, the company continues to accelerate its expansion strategy. During the quarter, it opened two new stores in Mexico, while franchise partner Alshaya launched its third Middle East location at Dubai Mall.
In 2025, Ulta Beauty also acquired British beauty retailer Space NK, giving the company an established foothold in the U.K. market. The Times Square flagship can be viewed as part of a broader strategy to expand the company’s reach both domestically and internationally.
Strong Financial Performance Supports Growth Strategy
Supporting these investments is the company’s strong financial performance.
For the first quarter of fiscal 2026, Ulta Beauty reported revenue of $3.2 billion, representing an 11.1% increase compared to the same period last year. Comparable sales rose 5.3%, driven by higher average ticket values and increased customer transactions. Diluted earnings per share (EPS) reached $7.74, surpassing analyst expectations.
Commenting on the results, Steelman said: “Fiscal 2026 is off to a strong start driven by broad-based growth across all channels and major categoriesl. Our results demonstrate the strengths of our model, focused execution of our talented associates, and the effectiveness of our strategy in an uncertain macroeconomic landscape.”
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