The Investor
28 Aug 2026, 11:00
Ulta Beauty Falls 1.9% Despite Strong Q2 and Raised Full-Year Guidance
Ulta Beauty (NASDAQ: ULTA) shares fell 1.9% in premarket trading despite reporting solid fiscal second-quarter growth and raising its full-year outlook.
Net sales increased 8.9% to $3.04 billion, while comparable sales rose 3.8%. Operating income increased 10.1% to $379.6 million, and diluted EPS climbed 13.3% to $6.55. Ulta also increased its planned fiscal 2026 share repurchases to $1.8 billion from $1.5 billion.
Management raised full-year guidance, now expecting sales growth of 6.7%–7.2%, comparable sales growth of 3.2%–3.7%, and EPS of $28.70–$29.00.
The negative reaction may reflect signs of slowing underlying momentum despite the guidance increase. Comparable sales growth moderated sharply from 6.7% a year earlier to 3.8%, while gross margin slipped slightly to 39.1% from 39.2%. Some of the overall revenue growth also came from the Space NK acquisition and new stores rather than comparable-store growth.
The modest 1.9% decline suggests investors are weighing Ulta’s improved outlook and strong earnings growth against slower comparable sales and limited margin expansion.
Ulta Beauty (NASDAQ: ULTA) shares fell 1.9% in premarket trading despite reporting solid fiscal second-quarter growth and raising its full-year outlook.
Net sales increased 8.9% to $3.04 billion, while comparable sales rose 3.8%. Operating income increased 10.1% to $379.6 million, and diluted EPS climbed 13.3% to $6.55. Ulta also increased its planned fiscal 2026 share repurchases to $1.8 billion from $1.5 billion.
Management raised full-year guidance, now expecting sales growth of 6.7%–7.2%, comparable sales growth of 3.2%–3.7%, and EPS of $28.70–$29.00.
The negative reaction may reflect signs of slowing underlying momentum despite the guidance increase. Comparable sales growth moderated sharply from 6.7% a year earlier to 3.8%, while gross margin slipped slightly to 39.1% from 39.2%. Some of the overall revenue growth also came from the Space NK acquisition and new stores rather than comparable-store growth.
The modest 1.9% decline suggests investors are weighing Ulta’s improved outlook and strong earnings growth against slower comparable sales and limited margin expansion.
