Walk into any suburban shopping center and you’ll see it. That bright orange sign. It’s almost a beacon for anyone who needs a specific shade of Clinique foundation or a last-minute bottle of Moroccanoil. But lately, people have been whispering. You've probably seen the TikToks or the panicked Reddit threads asking, is Ulta going out of business? It’s a valid question in a world where retail giants seem to topple every other Tuesday.
Honestly, the short answer is a hard no.
Ulta Beauty isn't just surviving; it’s actually one of the few "legacy" retailers that figured out how to fight back against Amazon. While companies like Bed Bath & Beyond and Rite Aid were filing for Chapter 11, Ulta was busy opening hundreds of "shop-in-shops" inside Target. If you’re looking for a bankruptcy filing or a "Going Out of Business" sale, you’re going to be waiting a long time.
Why people think Ulta is closing
Rumors don't just appear out of thin air. Usually, they start because of a few store closures in high-profile areas. If your local Ulta shuts down at the mall, it’s easy to assume the whole ship is sinking. But that’s usually just "fleet optimization." Basically, if a lease gets too expensive or a neighborhood changes, Ulta bails on that specific spot to move somewhere better.
Retail is fickle.
Another reason the is Ulta going out of business rumor keeps popping up is the sheer volume of "dupe" culture. With brands like e.l.f. and Essence blowing up, some analysts wondered if the high-end prestige brands at Ulta would lose their luster. They didn't. In fact, Ulta’s business model depends on that mix of "high and low." You can buy a $2 mask and a $70 perfume in the same transaction. That’s their secret sauce.
The Target partnership changed everything
In 2021, Ulta did something brilliant. They partnered with Target to put mini Ulta boutiques inside Target stores. This wasn't a sign of weakness; it was a land grab. By 2024, there were over 500 of these locations. It allows them to reach customers who might not want to drive to a dedicated beauty store but will absolutely grab a Tarte Shape Tape while they're buying paper towels.
It’s about convenience. It’s about being everywhere.
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Looking at the actual numbers
If you want to know if a company is dying, look at the quarterly earnings. Dave Kimbell, Ulta’s CEO, has been pretty transparent about the "normalization" of the beauty market. After the post-pandemic surge where everyone was buying makeup to go back outside, things slowed down a bit. But "slowing down" doesn't mean "going bankrupt."
In 2023, Ulta reported net sales of $11.2 billion. That’s an 9.8% increase from the year before. You don't see those kinds of numbers in a company that’s circling the drain. Their loyalty program, Ulta Beauty Rewards (formerly Ultamate Rewards), has over 43 million active members. That is a massive amount of data and recurring revenue. Most retailers would kill for that kind of fan base.
The stock market jitters
Sometimes, investors get grumpy. When Ulta's stock price dips, the headlines get scary. "Ulta Shares Plunge as Management Warns of Slowdown." To a casual reader, that sounds like the end. To a business person, it just means they might grow by 4% this year instead of 10%.
Wall Street lives for growth. If a company isn't growing at a breakneck pace, the "smart money" gets nervous. But for you, the shopper? It means nothing. The shelves are still stocked. The stylists are still doing hair in the back. The points are still valid.
The "Sephora Kids" and the competition
We have to talk about Sephora. They are Ulta’s biggest rival, and the competition is fierce. Sephora has the prestige of LVMH backing it, and they've captured a younger, "prestige-only" demographic. Recently, the "Sephora Kids" trend—where 10-year-olds are buying Drunk Elephant retinol—has dominated social media.
Ulta is playing a different game.
Ulta is more democratic. They have the salon. They have the drugstore brands. They have the luxury brands. While Sephora feels like a high-end boutique, Ulta feels like a playground. That diversity of price points is what keeps them safe during a recession. When people feel poor, they stop buying $100 serums but they still buy $10 mascara. Ulta wins either way.
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Real threats to the beauty industry
So, if Ulta isn't going out of business, what should they be worried about?
- The Rise of TikTok Shop: This is the big one. Influencers are selling products directly through the app, cutting out the middleman.
- The Death of the Mall: Many Ulta stores are "power center" or strip-mall based, which is good. But the ones stuck in dying indoor malls are struggling.
- The "Prestige" Fatigue: People are getting tired of 12-step skincare routines. The "clean girl" aesthetic and "skinimalism" mean people are buying fewer products.
Ulta has responded to this by leaning heavily into their "Conscious Beauty" initiative. They're vetting brands for ingredients and sustainability, which is exactly what Gen Z cares about. They aren't just sitting still.
The expansion into Mexico
In 2024, Ulta announced they were finally expanding internationally, starting with Mexico. This is a huge move. For years, they stayed strictly in the U.S. This expansion is the ultimate proof that the "is Ulta going out of business" narrative is false. Dying companies don't launch international expansions. They consolidate. They retreat. Ulta is doing the opposite—they are colonizing new territory.
What to do with your Ulta points
If you’re still worried—maybe you’re a "prepper" for your makeup stash—there’s no reason to panic-spend your points. Usually, when a company is in trouble, you see the loyalty program get devalued first. Ulta hasn't done that. In fact, they’ve made it easier to earn points through their credit card and Target tie-ins.
Expert Tip: The best value for Ulta points is always at the 2,000-point mark. That’s when you get $125 off. Don't spend them in small increments of $3 or $8. Wait until you hit the big milestone to get the maximum "math" in your favor.
Common misconceptions about retail "death"
We've been told the "Retail Apocalypse" is here for a decade. But look around. People still want to touch, smell, and try on makeup. You can’t swatch a lipstick on a screen. Well, you can try with AR filters, but it’s not the same as seeing how it looks against your actual skin tone in fluorescent lighting.
Ulta provides an experience.
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They have the Salon at Ulta Beauty. They do brows. They do facials. You can't download a haircut. By offering services, they ensure that people have to walk through the doors. Once you’re in for a brow wax, you’re probably going to walk out with a new lip gloss and a bottle of dry shampoo. It’s the "Target Effect," but for beauty.
How to stay informed on Ulta's status
If you want to keep an eye on things yourself, stop looking at TikTok rumors and start looking at these three things:
- Quarterly Earnings Calls: These happen four times a year. You can literally listen to them on the Ulta Investor Relations website. If they start talking about "liquidity issues" or "debt restructuring," then you can worry.
- Store Count: As long as the number of stores is going up (or staying flat), the company is fine.
- Inventory Levels: If you walk into your local store and the shelves are consistently empty—and not just because a product is viral—that’s a red flag. It means they aren't paying their vendors. Right now, Ulta's shelves are overflowing.
Actionable steps for the savvy Ulta shopper
Stop worrying about the company's demise and start maximizing your relationship with them. Since the brand is clearly staying put, you should be focused on getting the most out of their staying power.
Audit your rewards account. Check your "points expiration" status. If you are Platinum or Diamond, your points never expire. If you aren't, you need to use them before they vanish. Don't let free money sit there because you're afraid the store will close.
Leverage the Target link. Make sure your Target Circle account is linked to your Ulta Beauty Rewards. You get points at both places. It’s a double-dip that most people forget to set up.
Watch the "21 Days of Beauty" sales. These events are the gold standard for the industry. If Ulta was in trouble, these sales would get smaller or the discounts would be less aggressive. Instead, they’ve been getting bigger, often featuring "prestige" brands that rarely go on sale elsewhere.
Keep an eye on the brands. When a big brand like Fenty Beauty or Ordinary moves into Ulta, it’s a massive vote of confidence. Brands don't sign distribution deals with dying retailers. They want to be where the foot traffic is.
Ulta is the dominant force in American beauty retail for a reason. They figured out that women (and men) don't want to choose between "cheap" and "fancy." They want both. They want to buy their Q-tips and their $100 perfume under one roof. Until someone else figures out how to do that better, Ulta isn't going anywhere. You can rest easy knowing those orange bags will be around for a long, long time.