Is ULTA (Ulta Beauty, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ULTA is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (9.27% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (2.10% vs ≤33% threshold).

Ulta Beauty, Inc. is a leading specialty retailer in the United States offering a wide range of cosmetics, fragrances, skincare, and haircare products. Beyond retail, the company provides in-store salon services, including hair, skin, and brow treatments, alongside its own private label Ulta Beauty Collection. For Muslim investors, ULTA represents a solid Halal investment opportunity within the consumer cyclical sector. The stock successfully passes all four AAOIFI shariah screens, meaning both its core retail operations and its underlying financial structures align with Islamic finance principles. From a financial perspective, Ulta Beauty demonstrates highly disciplined capital management that appeals to halal investors. Its debt-to-market cap ratio is notably low at just 9.3%, and the company generates 0.00% in impermissible interest income, reflecting a clean balance sheet free from excessive, interest-bearing leverage. While the core business of selling beauty products and salon services is broadly permissible, Muslim investors should periodically monitor the company's product lines and service offerings. Keeping an eye on these developments ensures the company remains aligned with Islamic ethical standards as the retail landscape and brand partnerships evolve. Ulta Beauty, Inc. operates in the Consumer Cyclical sector under the Specialty Retail industry and is headquartered in Bolingbrook, IL, US. The company is led by CEO Kecia L. Steelman and employs approximately 20,000 people.

ULTA was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. ULTA passed 4 of these 4 screens.

ULTA has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

ULTA was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.