Target reports Q2 adjusted EPS of $2.05, beating estimates despite a sales dip. The retailer maintains its cautious outlook as it plans for beauty's future post-Ulta.

The shop-in-shop partnership between Target and Ulta Beauty was allegedly doomed by rampant theft of the cosmetics company’s pricey products — including at least $10,000 a month at one store. The retail giants last week announced that they’ve “mutually agreed” to terminate their union — where Ulta’s popular makeup items were sold at 610 Target locations around the country.

A shop-in-shop deal ends as both companies turn attention back to retail basics. Analysts weigh in on the move while Bank of America downgraded Target.

Target and Ulta Beauty's retail partnership will officially end in August 2026 after staff exposed crippling theft of up to $10k a month, chronic understaffing, and a lacklustre shopping experience.

The two retailers launched their partnership in 2021. According to CNBC, Target has launched more than 600 Ulta Beauty shops to its stores since then. Sugar cookies sold at Target recalled because they may contain pieces of wood Aug. 14, 2025, 2:44 p.m.

Target (NYSE:TGT) hit with a downgrade to Underperform with rising digital competition, tariff pressures, and challenges in the beauty sector.

Ulta Beauty and Target Corporation announced on Thursday they won’t be renewing their in-store partnership, which ends a year from now in August 2026. Until then, Ulta Beauty products will continue to be sold in Target stores and online at Target.com.