The companies said guests with linked rewards accounts will continue to earn Ulta Beauty Rewards on eligible Ulta Beauty at Target purchases until August 2026.
Target (TGT) and Ulta Beauty (ULTA) shares declined in early trading on Thursday after the companies announced that they have decided not to renew their partnership when the current agreement concludes in August 2026.
Both companies had signed a partnership in 2021 through which there would be an Ulta Beauty at Target as part of a shop-in-shop agreement. Since the launch, Ulta Beauty at Target has expanded access to prestige beauty and offered beauty customers the benefit of linking their Ulta Beauty Rewards and Target Circle accounts for added convenience and value.
Shares of big box retailer Target were down 2.2% in early trading. Retail sentiment on the stock improved to ‘bullish’ from the ‘neutral’ territory a day ago, with chatter at ‘normal’ levels, according to data from Stocktwits.
Ulta Beauty shares were down 2% and retail sentiment on the stock remained unchanged in the ‘bearish’ territory, with chatter at ‘normal’ levels, according to Stocktwits data.
Guests with linked rewards accounts will continue to earn Ulta Beauty Rewards on eligible Ulta Beauty at Target purchases until August 2026, the companies said.
The firms also noted that they would ensure product availability through the end of the partnership, as well as support their teams and partners during the transition.
Analysts pointed out that Target has seen growth stemming from offering beauty products at a time when customers have been pulling back spending on big-ticket items. The move to conclude the partnership comes ahead of next week, when Target is set to report second-quarter results on August 20. “Consumers remain cautious and choiceful in spending, given uncertainty related to tariffs and new government policies,” Telsey Advisory Group analyst Joseph Feldman said while maintaining a price target of $110 and rating of ‘market perform.’
“Furthermore, the ongoing preference for everyday items—away from discretionary products—continues to impact trends. As such, we expect outperformance in essentials and grocery, more than offset by softer trends in home and apparel,” Feldman added.
Target stock has declined over 23% so far this year, while Ulta Beauty shares have gained 21% year-to-date.
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