Ulta Beauty leaps after retailer posts strong Q2 and hikes its full-year guidance
Ulta’s traffic picked up during the quarter as shoppers carved out space for fragrances and skin care.
Ulta Beauty jumped 3.1% in premarket trading after the beauty juggernaut posted strong second-quarter results Thursday afternoon, blowing past expectations and raising its full-year outlook.
The company delivered $5.78 in earnings per share, well above analysts’ $5.10 forecast, and booked $2.79 billion in revenue, topping Wall Street’s $2.68 billion estimate. Same-store sales climbed 6.7%, handily beating the Street’s expectations for 2.9% growth and outshining much of the broader retail sector this earnings season.
The glow-up isn’t over yet: Ulta raised its full-year guidance, now expecting $12 billion to $12.1 billion in sales (up from $11.5 billion to $11.7 billion) and EPS between $23.85 and $24.30, up from $22.65 to $23.20.
All of Ulta’s core categories shined during the quarter, led by double-digit growth in fragrance (continuing the category’s hot streak) along with momentum in skin care, wellness, and cosmetics. Ulta’s UK-based Space NK acquisition also added a lift to the results.
CEO Kecia Steelman flagged ongoing economic uncertainty and shifting shopper trends, but stressed that beauty and wellness can stay resilient even when consumers tighten their budgets.
Ulta shares were up 22% year to date going into the earnings release.
