Ulta Beauty Shares Drop Despite Q2 Beat And Raised Full-Year Guidance

Font: Financial Modeling Prep  • Aug 29, 2025

Ulta Beauty Inc. (NASDAQ:ULTA) shares fell more than 6% on Friday even as the beauty retailer reported fiscal second-quarter earnings and revenue above Wall Street expectations and lifted its full-year outlook.

Earnings per diluted share were $5.78, ahead of analyst estimates of $4.99. Net sales climbed 9.3% to $2.79 billion, topping consensus of $2.66 billion. Comparable sales grew 6.7%, reversing a 1.2% decline in the prior-year quarter.

Gross profit margin improved to 39.2% from 38.3%, helped by lower inventory shrink and stronger merchandise margins. Operating income totaled $344.9 million, or 12.4% of net sales, down from 12.9% last year due to higher payroll and incentive compensation expenses.

The company expanded its footprint with the addition of 62 net new stores, including locations from its recently acquired UK-based Space NK brand. Stronger transactions and higher average ticket sizes also supported growth.

Ulta raised its full-year sales forecast to $12.0–$12.1 billion from $11.5–$11.7 billion and lifted its EPS outlook to $23.85–$24.30 from $22.65–$23.20.