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Ulta Beauty tops Q2 estimates, but shares show muted reaction
Ulta reported Q2 EPS of $6.55 versus the $6.22 estimate and lifted its fiscal 2027 sales growth outlook to 6.7% to 7.2%, while comp sales growth cooled to 3.8% year over year.
Ulta Beauty reported earnings after the market closed on Aug. 27, delivering results that beat estimates and prompted the company to raise its fiscal 2027 sales outlook, but the stock initially sold off before paring losses, according to MarketBeat Ratings.
For the quarter, Ulta posted earnings per share of $6.55, ahead of the $6.22 expected, and revenue growth of 8.9% year over year. The company also increased operating income by more than 10% to $379.6 million, while comp sales rose 3.8% year over year.
Ulta guided fiscal 2027 sales growth to 6.7% to 7.2%, but the report points to slowing growth ahead. Comp sales growth in the quarter was a decline from 6.7% a year ago, and the company’s full-year guide of 3.2% to 3.7% suggests additional slowing in the second half of the year.
The muted investor response also tied to profitability details, with gross margin dipping from 39.2% to 39.1%. MarketBeat Ratings notes the gross margin slide largely reflected last year’s Space NK acquisition, while operating margin improved 10 basis points year over year.