Space NK sales rise 19% to £282.7m but profit drops 67% on Ulta deal costs

Space NK reported comparable turnover up 19% to £282.7m for the nine months ended January 2026, a figure that already exceeds the £266.1m the retailer booked across its entire previous 52-week year. The filings, lodged with Companies House, cover a shortened 44-week accounting period created by the retailer's July 2025 acquisition by US beauty giant Ulta Beauty.

The headline number carries the story. A shorter year, yet higher sales. New stores, upsized locations and sustained growth in digital sales drove the increase for the British high street beauty chain.

What happened to profitability?

Operating profit fell 61.3% to £7.4m, while profit before tax dropped 67.4% to £5.8m, down from £17.8m in the prior period. The collapse traces directly to the deal itself. Space NK booked £12.1m in exceptional, non-recurring costs tied to the Ulta Beauty acquisition.

The rest of the cost structure was substantial:

• Gross profit: £118.7m
• Distribution costs: £84.5m
• Administrative expenses: £20.9m
• Net interest expense: £1.69m
• Tax charge: £4.89m

The arithmetic is blunt. Distribution and administration alone consumed £105.4m, leaving a thin margin before exceptionals even entered the ledger.

What did Space NK say?

"The company 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," the filing stated.

It added: "The company benefits from the strategic support and financial backing of its new ultimate parent company."

That second sentence signals the mechanism now shaping the business. Ulta Beauty's balance sheet stands behind store expansion and digital investment, and the buyer appears willing to absorb short-term profit pain for long-term share.

Who sold, and for how much?

Ulta Beauty acquired Space NK from Manzanita Capital in July 2025. Sources close to the retailer placed the price above £300m. Manzanita had held the chain since 2002, and reportedly began fielding prospective bids in May of last year.

For a 23-year hold, the exit marks the end of one of the longest private-equity ownerships in British beauty retail.

What has Ulta Beauty gained?

The US retailer says the purchase is already paying off. Ulta Beauty reported net sales up 11.1% to US$3.2bn for its first quarter of trading in 2026, with Space NK contributing to the increase.

For Ulta, Space NK delivers three things at once: a European beachhead, a curated prestige-plus-indie assortment model, and a store estate tuned to British high street economics. For Space NK's brand partners, the implication is a buyer with deeper pockets and an appetite for shelf expansion.

Suppliers and brand owners selling through Space NK should watch two data points ahead: the pace of new store and upsizing announcements under Ulta ownership, and whether exceptional costs recede in the next full 52-week filing. If they do, the £7.4m operating profit figure will read as a one-off distortion rather than a trend, and the next Companies House filing becomes the test.