Ulta Beauty Inc. raised its full-year outlook after reporting second-quarter sales that topped expectations, a sign that spending on cosmetics is holding up.
The beauty retailer said it now expects fiscal 2025 sales in the range of $12 billion to $12.1 billion, up from its previous projection of as much as $11.7 billion.
Comparable-store sales for the quarter ended Aug. 2 were up 6.7 percent, surpassing analysts’ average estimate of 3 percent.
Ulta’s shares rose 8 percent in after-hours trading in New York. The stock had gained 23 percent this year through Wednesday’s close, beating the S&P 500 Index’s 10 percent advance.
The company cited growth across all major categories.
The results show that Ulta is building momentum even as cash-strapped consumers prioritise essential goods such as groceries. The company’s relatively strong recent performances suggest the beauty chain is withstanding economic concerns and President Donald Trump’s tariffs.
Earlier this month, Ulta and Target Corp. announced that they wouldn’t be renewing their store partnership once it ends next year. Ulta operates more than 600 beauty shops inside the big-box retailer’s locations, and sells products on Target’s website, under an agreement announced in 2020.
In June, Ulta announced that former chief financial officer Paula Oyibo would leave the company after about a year in the role, without specifying a reason for her departure. Chris Lialios, senior vice president and controller since 2018, has stepped in as interim CFO while the company looks for Oyibo’s replacement.
By Charles Gorrivan
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