Ulta Beauty Inc (NASDAQ:ULTA) shares moved lower after the cosmetics retailer lowered its full-year sales and profit guidance on the back of a disappointing quarter.
Full-year sales are now expected to be in the range of $11 billion to $11.2 billion, down from earlier guidance of $11.5 billion to $11.6 billion.
Earnings per share (EPS) are seen in the range of $22.50 to $23.50, down from its earlier guidance range of $25.20 to $26.
For Q2, net sales of $2.55 billion were up from $2.53 billion in the year-ago quarter but missed estimates of $2.61 billion.
Comparable sales were down 1.2% year-over-year driven by a 1.8% decrease in transactions and a 0.6% increase in the average ticket.
Profits fell from $6.02 per share for the same period in 2023 to $5.30, short of the consensus of $5.45.
Ulta CEO Dave Kimbell said the company’s second quarter performance did not meet its expectations primarily due to a decline in comparable store sales.
“We are clear about the factors that adversely impacted our store performance, and we have actions underway to address the trends,” Kimbell said.
“We are focused on driving stronger sales and traffic and continuing to exercise financial discipline. In light of our first half trends and a more cautious outlook, we have updated our full-year expectations.”
Shares of Ulta traded down 2.2% at about $359 late morning on Friday.