Ulta Beauty Reports Strong Q2 Earnings Despite Share Price Decline
Shares of Ulta Beauty (NASDAQ: ULTA) declined on August 29, 2026 following the release of its second-quarter earnings report. The cosmetics retailer reported strong financial results with net sales rising 8.9% year-over-year to $3 billion and operating income increasing by 10.1%. Ulta opened 14 new stores during the quarter, expanding its total store count to 1,622 locations across the U.S. and international markets. The company's comparable sales grew 3.8%, driven in part by strategic acquisitions like Space NK. Earnings per share rose 13.3% to $6.55, surpassing Wall Street expectations of $6.20. Ulta also raised its full-year guidance for net sales and operating income growth. Despite concerns over muted traffic and promotional activity affecting gross margins slightly, the company remains optimistic about future performance. Ulta's stock is currently trading at around 18 times earnings projections, which some investors may see as a buying opportunity. The retailer also announced plans to repurchase up to $1 billion in shares by fiscal year-end.
Topics: cosmetics retail stock_performance