Ulta Beauty Inc (NASDAQ:ULTA) reported second-quarter revenue of $3 billion, topping analyst estimates of $2.96 billion, as the beauty retailer raised its full-year guidance.
Earnings per share came in at $6.55, up 13.3% year-over-year and ahead of the $6.18 estimate. Comparable sales rose 3.8%, a slowdown of 290 basis points from a year earlier. Operating income climbed 10.1% to $379.6 million.
Gross profit margin was 39.1%, down 10 basis points from a year ago. Net income totaled $282 million, with operating cash flow of $381.6 million.
The company now expects full-year net sales growth of 6.7% to 7.2%, up from a prior range of 6% to 7%. Comparable sales growth guidance was raised to 3.2%-3.7% from 2.5%-3.5%, and operating income growth is now seen at 8.3%-9.3%, up from 6.5%-9%.
Diluted EPS guidance was lifted to $28.70-$29.00 from $28.36-$28.80. Capital expenditure guidance was unchanged.
Ulta also expanded its stock repurchase authorization to $1.8 billion from $1.5 billion. The company repurchased $791.1 million in shares during the quarter.
"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," said CEO Kecia Steelman.
"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."