Space NK turnover rises 19% as Ulta deal reshapes profits

By James Calloway

Space NK reported comparable turnover (like-for-like sales) of £282.7m for the nine months ended January 2026, up 19% and above the £266.1m full-year result recorded in the 52 weeks ended January 2025.

The retailer filed the figures at Companies House under a 44-week accounting period, eight weeks shorter than its prior reporting period. Despite that shorter window, new stores, upsized high-street locations and sustained digital growth helped sales exceed the previous full-year total.

Which channels supported growth?

Ulta Beauty’s acquisition of Space NK was the central driver identified in the results, while the store programme and digital channel provided the operating growth behind the 19% increase. The physical changes added selling space through openings and enlargements.

The sales result did not carry through to earnings, however. Operating profit (earnings before interest and tax) fell 61.3% to £7.4m, even as comparable turnover advanced by 19%.

What drove the 61.3% profit decline?

Profit before tax (PBT) dropped 67.4% to £5.8m from £17.8m. Space NK attributed the sharp contraction to exceptional and non-recurring costs connected with Ulta Beauty’s acquisition in July 2025.

The filings itemised the main figures:

• Gross profit (revenue left after direct product costs) totalled £118.7m.
• Distribution costs (selling and logistics overhead) were £84.5m.
• Administrative expenses (corporate running costs) were £20.9m.
• Exceptional items (one-off acquisition-related charges) totalled £12.1m.
• Net interest expense (interest costs after interest income) was £1.69m.
• Tax was £4.89m.

The £118.7m gross profit was absorbed by £84.5m in distribution costs and £20.9m in administrative expenses. The separate £12.1m exceptional charge, £1.69m net interest expense and £4.89m tax line completed the reported cost picture.

What did the filings say about growth and ownership?

“The company [Space NK] has continued to deliver growth during the period, notwithstanding that the current financial period covers 44 weeks compared to 52 weeks in the prior period,” a statement in Space NK’s Companies House filings read.

“The company benefits from the strategic support and financial backing of its new ultimate parent company [Ulta Beauty],” the filing added.

The statements place a shorter accounting period alongside the financial support of a new owner. Ulta is identified as Space NK’s ultimate parent, meaning its top-level owner, while the quoted growth claim rests on sales exceeding the prior full-year benchmark despite eight fewer reporting weeks.

Manzanita Capital had owned the high-street beauty chain since 2002 and began receiving prospective bids from buyers in May. Ulta acquired Space NK from Manzanita in July 2025. Sources close to the retailer placed the transaction cost at more than £300m.

What did Ulta report after the acquisition?

Ulta Beauty reported an 11.1% increase in net sales to US$3.2bn for its first quarter of trading in 2026. The US retailer has also benefited from the purchase, while Space NK separately cited its parent’s strategic and financial backing.

The two companies therefore posted higher sales in their respective reporting periods, but Space NK’s £12.1m acquisition-related exceptional costs weighed on its earnings. Ulta’s quarterly increase does not isolate Space NK’s contribution within the US$3.2bn total.

For Space NK, the next test is whether new stores, upsized locations and sustained digital growth can maintain the sales trajectory once the £12.1m exceptional acquisition charge sits outside the relevant comparison. The 19% comparable increase strengthens the trading case, but the 61.3% operating-profit fall leaves the earnings benefit dependent on sustained sales and lower exceptional costs.