Ulta Beauty down after posting slower comparable sales growth
ULTA•Slower comparable sales growth weighs on shares
- Shares of cosmetics retailer Ulta Beauty (ULTA.O) were down 1.5% at $532.28 in premarket trading.
- The company reported second-quarter comparable sales growth of 3.8%, compared with a 6.7% rise a year earlier, as macroeconomic uncertainty looms.
- Ulta beat second-quarter sales and profit estimates, but shares were under pressure after the weaker same-store sales growth.
Forecast raised on marketing and assortment investments
- Ulta raised its annual sales and profit forecasts, betting that investments in marketing and product assortment will drive demand.
- It now expects full-year sales to grow between 6.7% and 7.2%, up from its prior forecast of a 6% to 7% increase.
- The company sees annual EPS in the range of $28.70 to $29, versus its prior forecast of $28.36 to $28.80.
- Barclays said, "2H26 guidance is consistent with ULTA's historically prudent approach and, in our view, leaves room for upside," and cut its price target by $2 to $645.
- Up to the last close, the shares were down about 11% year to date.
