Ulta Beauty reported stronger-than-expected results for its fiscal second quarter ended 2 August, buoyed by broad-based demand for cosmetics, skincare and fragrance. Net sales climbed 9.3% from a year earlier to $2.79 billion, while diluted earnings per share rose 9.1% to $5.78, beating analyst estimates by roughly 70 cents. Comparable sales gained 6.7%, driven by a 3.7% increase in transactions and a 2.9% rise in average ticket. Management credited the performance to growth across all major categories, lower inventory shrink and contribution from the July acquisition of U.K.-based beauty chain Space NK, which added 83 stores to Ulta’s portfolio. Gross margin improved to 39.2% of sales, up from 38.3% a year earlier, offsetting higher selling and administrative expenses. On the back of the quarter, Ulta raised its full-year outlook. The company now projects fiscal-2025 revenue of $12.0 billion to $12.1 billion, up from $11.5 billion to $11.7 billion, and expects EPS of $23.85 to $24.30 versus a prior range of $22.65 to $23.20. Comparable-sales growth is seen at 2.5% to 3.5%, compared with previous guidance of flat to 1.5%. Investors cheered the update, sending the shares up about 6% in extended New York trading to roughly $560. The results suggest U.S. consumers continue to prioritise beauty products despite broader caution on discretionary spending.