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A Tougher Consumer
With H1 2026 in the rearview mirror – and shoppers navigating still-elevated gas prices and macroeconomic uncertainty – we examined foot traffic at Ulta Beauty and Bath & Body Works to see how one of America’s favorite discretionary categories is holding up amid the pressure.
Lipstick Effect on Display at Ulta Beauty
Ulta Beauty entered the summer with the wind at its back. Q2 2026 foot traffic grew 3.5% year over year (YoY), while monthly trends showed steady acceleration from May onward, culminating in a 5.2% YoY visit increase in July.
Overall traffic outpaced same-store visits throughout the period as Ulta continued progressing toward its long-term goal of more than 1,800 stores. Still, strong same-store visit trends indicate that the retailer’s draw is strengthening not only through expansion, but also across the brand’s existing store base.
Ulta Beauty Sees Growing Visit Momentum Into the Summer
Overall and Same-Store Visits to Ulta Beauty vs. 2025 (YoY)
Overall
Same-Store
Ulta’s strong visit momentum aligns with the company's recent financial performance. Last quarter, Ulta reported comparable sales growth of 5.3%, driven by gains in both ticket and transactions – and buoyed in part by the chain’s "Ulta Beauty Unleashed" strategy.
Shaky consumer confidence may even be working in Ulta Beauty’s favor by reinforcing the “lipstick effect” – the tendency for consumers to continue spending on smaller, affordable luxuries like beauty products while pulling back on bigger-ticket discretionary purchases. And with growing numbers of consumers viewing beauty through a wellness lens, shoppers may increasingly rely on it as an accessible way to practice self-care when times are tough.
Bath & Body Works Holds Steady
Bath & Body Works’ monthly visit trends were choppier, with traffic shifting from -3.1% YoY in April to +1.9% in May, +0.4% in June, and -3.4% in July. Part of July’s dip may reflect a calendar quirk: July 4th fell on a Saturday this year, likely weighing on traffic during the brand’s key Semi-Annual Sale.
Despite Monthly Volatility, Bath & Body Works Saw Just a Modest Visit Decline in Q2 2026
Overall and Same-Store Visits to Bath & Body Works vs. 2025 (YoY)
On a quarterly basis, however, visits slipped just 0.2% YoY, suggesting that customers continued to prioritize Bath & Body Works even as they pulled back elsewhere. That resilience also points to early traction for the company’s “Consumer First Formula” turnaround, which helped Q1 results exceed guidance, even as YoY sales remained subdued.
A Resilient Corner of Retail
Even as consumers remain cautious, Ulta Beauty’s strong visit growth and Bath & Body Works’ steadier performance suggest shoppers are still making room for beauty and personal-care purchases. The question now is whether that resilience can hold through the holiday season, as competition for discretionary spending intensifies.
For more data-driven retail insights, visit Placer.ai/anchor.
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