Ulta Beauty (ULTA) raised its full-year sales and profit guidance after reporting quarterly results that topped Wall Street expectations, signaling continued strength in demand for makeup, skincare, and other beauty products. The company’s optimism stems from a combination of steady in-store sales, strategic international expansion, and targeted marketing investments, all of which have helped mitigate some supply chain and inventory pressures.
Shares of Ulta rose roughly 4% in pre-market trading Friday following the upbeat results. The company reported second-quarter net sales of $2.79 billion, surpassing analyst estimates of $2.67 billion, reflecting strong demand from younger shoppers drawn to trendy and affordable brands such as Elf Beauty. The retailer has also bolstered its product mix with celebrity-owned labels, including Rihanna’s Fenty Beauty, which have helped drive traffic and enhance the in-store experience.
Ulta is expanding its international footprint as well. In July, it completed the acquisition of UK high street chain Space NK, marking a major step in growing its presence outside the United States. The first new Space NK location opened on August 8 on London’s Oxford Street, one of Europe’s busiest shopping corridors, where foot traffic reaches roughly half a million visitors per day. The move gives Ulta exposure to a broader customer base and strengthens its positioning in the competitive luxury and prestige beauty segment.
The company also credited operational improvements for helping it manage costs. Lower e-commerce shipping expenses and reduced inventory losses contributed to a healthier bottom line despite lingering global trade uncertainty. While executives acknowledge that shifting U.S. trade policies have pressured consumer and business sentiment—luxury peer Estée Lauder, for example, flagged a $100 million tariff impact last week—Ulta’s diverse portfolio and targeted cost management have allowed it to remain resilient.
Quarterly gross profit rose 11.6% to $1.10 billion, reflecting both higher sales and efficiency gains. In response to the strong quarter, Ulta raised its annual net sales forecast to a range of $12 billion to $12.1 billion, up from the prior outlook of $11.5 billion to $11.7 billion. Similarly, the company now expects full-year earnings of $23.85 to $24.30 per share, an increase from the previous guidance of $22.65 to $23.20.
CEO Kecia Steelman emphasized the balance between optimism and caution: “Our outlook for the remainder of the year 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, we’re staying focused on what we can control.”
The results highlight Ulta’s ability to blend strategic growth initiatives with operational discipline, positioning the company for continued success as it leverages in-store experiences, e-commerce, celebrity partnerships, and international expansion to capture a growing share of the global beauty market.
Pump Radar
Stock Alerts