Ulta, Walmart, BBWI Post Strong Ecommerce Growth Despite Strain

A Mixed Retail Picture Emerges

Retailers reporting quarterly results this season are painting a picture of a consumer landscape split between resilience and fatigue, with ecommerce and delivery emerging as the clearest bright spots even as some chains report their slowest overall sales growth in years.

Ulta Beauty raised its full-year outlook after posting 8.9% sales growth in its latest quarter, and now expects fiscal 2026 sales to grow between 6.7% and 7.2% 1. The beauty retailer also plans to return $1.8 billion to shareholders through buybacks, a signal of confidence in its cash flow even as it flagged risks tied to the broader retail environment 1. Bath & Body Works told a similar story: its physical stores showed weakness, but ecommerce and international sales more than made up the difference, prompting the company to raise its fiscal 2026 guidance and leading at least one analyst to argue that market expectations for the stock remain too conservative 4.

Walmart's Ecommerce Surge Amid Slowing Growth

Walmart's results illustrate the same tension on a much larger scale. The retail giant reported $187.9 billion in quarterly revenue, powered by 23% global ecommerce growth and a 38% jump in advertising revenue 3. CEO commentary emphasized that gains in pickup, delivery and the company's online marketplace across both its U.S. and international operations were the primary engines behind that ecommerce surge, with executives crediting a strategy built around price, speed and convenience 6.

Yet Walmart also disclosed that its overall sales growth slowed to a six-year low, a sign that even the largest and most efficient retailer in the country is feeling pressure from cautious shoppers 5. That slowdown appears concentrated among middle-income households, while Walmart continues to gain customers earning more than $100,000 annually — a demographic shift that suggests higher earners are trading down into value retail even as more budget-conscious shoppers pull back further 5.

Digital Tools Reshaping Spending Behavior

Adding another layer to Walmart's ecommerce story, the company revealed that certain shoppers using a specific tool on its website end up spending up to 40% more than those who don't 2. That disclosure came alongside the acknowledgment of slowing sales growth, underscoring how digital features designed to streamline shopping are also becoming powerful levers for boosting basket size even as broader consumer spending growth cools 2.

What It Means

Taken together, the results from Ulta, Walmart and Bath & Body Works suggest that ecommerce, delivery and digital engagement tools are increasingly the primary growth drivers for major retailers, compensating for softer in-store traffic and uneven consumer demand. Buybacks and raised guidance from Ulta and Bath & Body Works indicate confidence in near-term execution, while Walmart's slowing headline growth paired with strong digital gains highlights how bifurcated consumer spending has become — a dynamic likely to keep shaping retail strategy heading into the next fiscal year.