Ulta Beauty calls for even better sales this year despite 'caution' about demand

By Claudia Assis

Ulta delivers a relatively rare quarterly beat and raise

An Ulta Beauty store in Novato, Calif. Ulta's mix seems to have resonated with shoppers.

Ulta Beauty Inc. shares rose more than 6% in the extended session Thursday after the specialty retailer showed investors a relatively rare financial feat these days: It posted a quarterly beat and raise, despite its own misgivings about U.S. consumers and demand for beauty products.

Ulta (ULTA) reported fiscal second-quarter sales of $2.8 billion, around 9% higher than the $2.6 billion in the prior year's quarter and ahead of Wall Street's expectations of $2.7 billion. Same-store sales rose nearly 7%, swinging from a drop in the 2024 quarter.

There was growth across all major categories, driving market-share growth and better-than-expected profit, Chief Executive Kecia Steelman said in a statement.

Ulta called for 2025 revenue between $12 billion and $12.1 billion, up from a previous guidance of between $11.5 billion and $11.7 billion. That reflects "both the strength of our year-to-date performance and our caution around how consumer demand may evolve in the second half of the year," while "near-term uncertainty persists," Steelman said.

Ulta reported a quarterly profit of $5.78 a share, compared with FactSet consensus of $5.10 a share.

Ahead of earnings, Jefferies analyst Ashley Helgans highlighted Ulta's mix of "prestige" and mass-appeal products under one roof, and mentioned industry data showing that those two extremes have been converging and growing, providing a near-term boost for Ulta.

The stock has gained more than 22% so far this year, far outpacing an advance of about 11% for the S&P 500 index SPX. Ulta is facing competition from Amazon.com Inc. (AMZN) and TikTok Shop, which are long-term risks, Helgans said. Future Sephora launches could also challenge recent share gains, the analyst said.

-Claudia Assis

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

08-28-25 1654ET