What Ulta Beauty, Inc. told the SEC could break it.

Ulta's private-label sourcing/manufacturing outside the U.S. exposes it to foreign laws, cross-border shipment disruptions, exchange-rate and import-duty fluctuations, and raw-material price increases.

“sourcing and manufacturing outside the United States, including foreign laws and regulations, political unrest, disruptions or delays in cross-border shipments, changes in economic conditions in foreign countries, exchange rate and import duty fluctuations, and conducting activities with third-party manufacturers; and price increases of raw materials used in the manufacturing of our private label brand merchandise”

Products Ulta sells — cosmetics (incl. CBD), dietary supplements, food, OTC drugs, medical devices and styling tools — are subject to FDA, FTC, CPSC, EPA and state regulation of safety, labeling, manufacturing and advertising.

“The products the Company sells, such as cosmetics (including products with cannabidiol), dietary supplements, food, over-the-counter (“OTC”) drugs, medical devices, and styling tools, including its Ulta Beauty branded products, may be subject to regulation by the U.S. Food and Drug Administration (“FDA”), the U.S. Federal Trade Commission (“FTC”), the Consumer Product Safety Commission (“CPSC”), the Environmental Protection Agency (“EPA”), state regulatory agencies, and State Attorneys General”

Merchandise from the top ten brand partners was ~51% of net sales in fiscal 2025 (54% prior year); amid beauty-industry vendor consolidation, loss or reduced supply from a key vendor could materially hurt results.

“During fiscal 2025 and fiscal 2024, merchandise supplied by our top ten brand partners accounted for approximately 51% and 54% of our net sales, respectively. There continues to be vendor consolidation within the beauty products industry. The loss of or a reduction in the amount of merchandise made available to us by any one of these key vendors, or by any of our other brand partners, could have a material adverse effect on our business, financial condition, profitability, and cash flows.”