Ulta Beauty raised its guidance for the fiscal year after posting a Wall Street beat in the second quarter with help from increased hair tool sales.
Net income was $282 million, or $6.55 per diluted share, versus $260.9 million, or $5.78 per diluted share, in the year-past quarter, the company stated.
Ulta results came in ahead of a Zacks Investment Research analyst consensus estimate of $6.21 per diluted share and beat Zacks’ revenue estimate by 2.1%.
Comparable sales increased 3.8% in the quarter year over year. Net sales increased 8.9% to $3.04 billion from the year-before period, the company reported, primarily driven by increased comparable sales, the acquisition of Space NK and sales from new stores. Operating income was $379.6 million versus $344.9 million
Ulta updated its fiscal 2026 outlook to net sales growth of 6.7% to 7.2% from 6% to 7%, and diluted earnings per share growth of $28.70 to $29 from $28.36 to $28.80.
In a conference call, Kecia Steelman, Ulta president and CEO, said the company continues to build on its initiatives in social media and wellness as it takes fresh approaches to engaging consumers. At the same time, the company is boosting its AI capabilities with third-party partners and its own shopping agent, which Ulta has invested in with new features.
Chris DelOrefice, Ulta Beauty CFO, noted in the conference call, “The haircare category delivered high single-digit comp growth again this quarter, driven primarily by strong performance in prestige haircare and hair tools. Newer brands Amika and Moroccanoil, as well as exclusive brand Sacred, continue to drive healthy growth in prestige haircare as hair treatments such as scalp regimens continue to resonate with consumers. Innovative offerings from Shark and T3 contributed to growth within hair tools.”
Steelman, in announcing the financial results, said, “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. We continue to strengthen our position as the ultimate beauty discovery destination, leveraging our unique understanding of our guests to drive excitement and growth through compelling innovation, value, experiences and convenience. With our strong first-half performance, we have raised our financial guidance for the year, reflecting our confidence in our strategic priorities and our ability to drive profitable growth and long-term value for all stakeholders in a dynamic environment.”
