Intense Competition Pressure: The beauty retail landscape is highly competitive, with Ulta facing pressure from department stores, specialty retailers like Sephora, online pure-plays, direct-to-consumer brands, and mass merchandisers.

Shifting Consumer Preferences: Rapidly evolving beauty trends and consumer demands, particularly for clean beauty, personalized products, and new digital experiences, could impact sales if Ulta fails to adapt quickly.

Economic Downturn Impact: Discretionary spending on beauty products could decline significantly during periods of economic recession, inflation, or reduced consumer confidence, affecting Ulta's sales and profitability.