Ulta Beauty Stock Slips 0.60% as $770M Volume Surges to 103rd Rank

On August 28, 2025, Ulta Beauty (ULTA) closed with a 0.60% decline, trading on a volume of $0.77 billion—up 85.67% from the previous day and ranking 103rd in market activity. The stock’s performance followed mixed signals from its Q2 earnings report and strategic updates.

The beauty retailer reported second-quarter net sales of $2.8 billion, a 9.3% increase driven by the acquisition of U.K. chain Space NK and a 6.7% rise in comparable sales. Gross profit grew 11.6%, and the company raised its full-year sales guidance to $12 billion–$12.1 billion. CEO Kecia Steelman emphasized resilience in discretionary spending, citing double-digit growth in fragrances and new brand introductions. However, management acknowledged caution about second-half demand, reflecting broader macroeconomic uncertainties.

Strategic moves included accelerating international expansion, with the Space NK acquisition enabling a capital-efficient entry into the U.K. market. The company also announced plans to open 63 new stores this year, up from 60, and a “Beauty Marketplace” launch in Q3 to diversify its product offerings. Meanwhile, the decision to phase out its Target shop-in-shop partnership, which contributed less than 1% of FY2024 sales, underscored a shift toward direct-to-consumer and international growth.

Despite improved operational metrics and a record 45.8 million loyalty members, investor sentiment remained cautious. The stock’s decline may reflect skepticism about sustaining Q2 momentum amid rising SG&A costs and evolving trade policies. Interim CFO Chris Lialios noted operating margin pressures, forecasting high single-digit declines in annual operating profits.

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