Ulta Beauty Stock Is Down Today. Now Could Be a Good Time to Buy.

ULTA shares dropped 4.18% after the company reported second-quarter results, even though earnings beat analyst estimates. The beauty retailer posted earnings per share of $6.55, up 13.3% year-over-year, and net sales climbed 8.9% to $3 billion, both topping Wall Street expectations.

Despite the sell-off, ULTA raised its full-year outlook. The company now expects net sales growth of 6.7% to 7.2% and operating income growth of 8.3% to 9.3%. Management also announced a $1 billion share buyback program.

Analysts flagged two headwinds: traffic growth came in muted, and promotional activity increased during the quarter. These factors appear to be driving investor caution despite the earnings beat and raised guidance.

The post-earnings dip creates a potential entry point for traders willing to look past near-term traffic concerns. The combination of double-digit EPS growth, raised full-year guidance, and a substantial buyback program signals management confidence in the business trajectory.