Ulta Beauty Inc

Strong Q2 operating performance (core “Ulta Beauty Unleashed” flywheel) - Net sales: +$8.9% YoY to ~$3.0B - Comparable sales (comp): +3.8% - Operating profit: +10.1% YoY to $380M (margin 12.5% vs 12.4%) - Diluted EPS: +$13.3% YoY to $6.55 - Business highlights: 47M active loyalty members (+3%), avg spend up, 15 new brands launched, earned media/awareness hit record levels, and app engagement where the app drives >60% of online sales.

Channel + merchandising momentum (and what drove it) - Stores: 13 net new Ulta Beauty stores; modest store comp growth (lapped strong prior-year quarter), driven by events/promotions (e.g., Big Summer Beauty Sale, Mother’s Day, Father’s Day) and 40,000+ in-store events. - E-commerce: 6th consecutive quarter of double-digit growth; e-commerce delivered high teens sales growth and higher performance tied to improved omni-channel convenience (buy anywhere, fill anywhere) and fulfillment from 1,500+ convenience store locations. - Fragrance leadership: High-teen comp growth; supported by strong Mother’s Day/Father’s Day moments and frequent culturally relevant newness. - TikTok Shop: continued traction—100M+ impressions since launch and used Chelsea, NY store as a live shopping studio; increasing brand/creator interest. - K-Beauty momentum: double-digit growth; nearly half of K-Beauty sales came from exclusives/exclusive products.

Gross margin pressure but managed well - Gross margin: 39.1% vs 39.2% last year (down modestly), primarily due to Space NK mix. - Management offset with shrink reductions, supply chain productivity, and merchandise margin preservation, while SG&A discipline supported earnings growth.