Ulta Beauty Announces Price Increases, Straining Holiday Shoppers

A significant shift in pricing strategy at Ulta Beauty is set to impact shoppers just as the holiday season approaches. Customers will experience price increases on popular beauty products, a move that has left many feeling frustrated. Despite these upcoming changes, the retailer has reported strong financial performance, indicating that it continues to thrive in a challenging market.

According to a report from The Street, Ulta Beauty recorded a 6.3 percent year-over-year sales growth in 2025, along with a 4 percent increase in customer spending. The retail chain also noted a 2.4 percent rise in in-store transactions, highlighting its continued popularity among consumers. Throughout the year, Ulta expanded its offerings by introducing 120 new brands, with plans for further expansion in the next 12 to 18 months.

Despite its success, Ulta Beauty is preparing customers for price hikes on items from well-known brands such as E.L.F Beauty, Cody, and Helen of Troy. These increases are largely attributed to new tariffs imposed during the administration of Donald Trump, which have affected costs for many beauty retailers. One shopper voiced their frustration on social media, stating, “Even going to Ulta nowadays, the prices will slap you in the face.”

During an earnings call, Ulta Beauty’s Interim Chief Financial Officer Chris Liliaos indicated that shoppers should expect a “modest” increase in prices. He explained that while many brand partners have been cautious about implementing these tariff-related changes, the third quarter saw more brand-driven price increases compared to the second quarter.

Liliaos emphasized the company’s commitment to supporting its brand partners in navigating the challenges of fluctuating prices. “We continue to work with our brand partners to understand how they’re thinking about tariff mitigation going forward and price increases,” he stated. He also acknowledged the financial pressures on consumers, assuring that Ulta aims to provide value to its customers.

The CEO of E.L.F Beauty, Jim Cramer, defended the brand’s recent price increase of $1, which was a direct result of Trump’s tariffs. Cramer reported that the brand maintained a positive sentiment among consumers, stating, “We had about 98 percent positive sentiment from our consumers.” He noted that even with the price increase, 75 percent of their products remain priced at $10 or less, ensuring continued affordability.

As the holiday shopping season unfolds, the implications of these price adjustments at Ulta Beauty will be closely monitored. The combination of rising costs and a competitive retail landscape poses a challenge for both the company and its customers, making this a pivotal moment for the beauty retailer. With consumers already feeling the pinch, Ulta’s ability to balance profitability with customer satisfaction will be crucial as it moves forward in this evolving market.