Ulta Beauty Inc (NASDAQ:ULTA) reported financial results for the second quarter after the market close on Thursday. Here’s a rundown of the specialty beauty retailer’s report.
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Q2 Highlights: Ulta Beauty reported second-quarter revenue of $2.79 billion, beating the consensus estimate of $2.67 billion. The company reported second-quarter earnings of $5.78 per share, beating analyst estimates of $4.97 per share, according to Benzinga Pro.
Total revenue was up 9.3% year-over-year in the second quarter. Comparable sales were up 6.7% year-over-year, driven by a 3.7% increase in transactions and a 2.9% increase in average ticket.
“Outstanding top line performance, fueled by growth across all major categories, drove market share growth and better-than-expected profitability,” said Kecia Steelman, president and CEO of Ulta Beauty.
Ulta said it added 24 new stores in the quarter and closed two, bringing total locations up to 1,473. Merchandise inventories were up 20.5% year-over-year to $2.4 billion. The company ended the quarter with $242.7 million in cash and cash equivalents.
Outlook: Ulta Beauty raised its fiscal year 2025 revenue from a range of $11.5 billion to $11.7 billion to a new range of $12 billion to $12.1 billion versus estimates of $11.69 billion. The company also raised its full-year earnings forecast from a range of $22.65 to $23.20 per share to a new range of $23.85 to $24.30 per share versus estimates of $23.58 per share.
Ulta Beauty said it now expects full-year comparable sales growth of 2.5% to 3.5%, up from prior guidance of flat to up 1.5%.
“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,” Steelman said.
Ulta Beauty executives will further discuss the quarter on an earnings call with investors and analysts at 4:30 p.m. ET.
ULTA Price Action: Ulta Beauty shares were up 5.57% in after-hours Thursday, trading at $560.17 at the time of publication, according to Benzinga Pro.
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