Ulta Beauty Inc (NASDAQ:ULTA) reported second-quarter earnings and revenue above analyst expectations, while the beauty retailer also raised its fiscal 2026 guidance.
The company posted adjusted earnings per share of $6.55, exceeding the analyst consensus of $6.17 by $0.38.
Revenue increased 8.9% to $3.04 billion from $2.79 billion in the prior-year quarter, ahead of the $2.98 billion estimate.
Comparable sales rose 3.8%, compared with growth of 6.7% in the same period last year.
Ulta Beauty shares initially gained in extended trading following the results before reversing direction and falling more than 3% in pre-market trading on Friday.
Operating income rises 10.1%
Operating income increased 10.1% to $379.6 million during the quarter.
Gross profit represented 39.1% of net sales, compared with 39.2% a year earlier. The company attributed the slight decline primarily to the impact of the Space NK business mix.
During the first six months of fiscal 2026, Ulta Beauty repurchased 1.4 million shares for $791.1 million.
“Our team delivered another impressive quarter of strong sales, profit, and earnings growth, demonstrating that we are executing with discipline and translating our Ulta Beauty Unleashed strategy into tangible benefits for our guests,” said Kecia Steelman, president and chief executive officer.
Ulta Beauty raises full-year earnings outlook
For fiscal 2026, Ulta Beauty increased its earnings-per-share guidance to between $28.70 and $29.00 from its previous range of $28.36 to $28.80.
The midpoint of the revised range, $28.85, is slightly above the analyst consensus estimate of $28.78 cited in the source material.
The company now expects net sales growth of between 6.7% and 7.2%, compared with its previous forecast of 6% to 7%.
Comparable sales are forecast to increase between 3.2% and 3.7%, up from the previous guidance range of 2.5% to 3.5%.
Bank of America maintains Buy rating
“ULTA posted a comp beat, took market share, protected gross margin, leveraged SG&A, and raised guidance, answering every major investor debate coming into 2Q,” Bank of America analysts led by Lorraine Hutchinson commented.
“We think ULTA is set up to continue to grow profitably and reiterate our Buy rating,” they said.
The comments represent Bank of America’s assessment rather than company guidance.
Share repurchase plan increased to $1.8 billion
Ulta Beauty also increased its planned share repurchases for fiscal 2026 to $1.8 billion from $1.5 billion.
The company expects to use the remaining $1.0 billion available under its existing authorisation by the end of the fiscal year.