The GLP-1 drug craze could boost the beauty industry’s financials.
“Hair loss with GLP-1s is real,” Ulta Beauty (ULTA) CEO Kecia Steelman said on Yahoo Finance’s Opening Bid Unfiltered podcast (see video above or listen below). “Products can help with that. And then also skin elasticity when you’re losing weight really rapidly — the skin elasticity is something that you’ve got to get moisture into … not only with GLP-1s, but also as people’s skin ages.”
“I think 50 is the new 30 and 60 is the new forties,” Steelman added. “So those of us that are aging, we want to age gracefully. So if we can find products that are actually helping the longevity of the look, we’re leaning into that. So I think there’s some crossover between GLP-1s and aging skin.”
The Wegovy GLP-1 pill by Novo Nordisk (NVO), approved by regulators last December, arrived at pharmacies nationwide in early January. One from rival Eli Lilly (LLY) — dubbed Foundayo — is widely expected to arrive on the market soon after gaining FDA approval on April 1.
Both pills, and a push by the Trump administration to bring down weight-loss drug prices, are expected to vastly improve the uptake of GLP-1s as people no longer have to take shots.
For its part, Ulta Beauty delivered a record-breaking performance last year, even without maximum uptake on GLP-1s.
Sales gained nearly 10% to reach $12.4 billion. This growth was underpinned by a 5.4% increase in comparable sales, driven by a healthy balance of higher foot traffic and increased average transaction values.
The company’s success was fueled by its “Ulta Beauty Unleashed” strategy, which focused on product newness. It launched over 100 new brands, such as Moroccan Oil and Cécred (the largest prestige haircare launch in its history).
Shares are up a sizzling 51% in the past year, outperforming the 30% gain for the S&P 500.
“We think the drivers of growth in 2025 continue into 2026 as the company benefits from an ongoing healthy industry and better execution across the store including new brand launches,” Goldman Sachs analyst Kate McShane wrote in a note. “We also believe Ulta stores can see a lift in the second half of the year when Target closes its Ulta Beauty by Target shops. Further, we think management is focused on prioritizing SG&A spend in order to further improve operating margins.”
Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
