Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJoe Tenebruso, The Motley FoolSat, August 29, 2026 at 12:42 AM GMT+2 3 min readShares of Ulta Beauty (NASDAQ: ULTA) declined on Friday after the cosmetics retailer released its quarterly earnings report.Image source: Getty Images.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Ulta's expansion strategy is workingUlta's net sales grew 8.9% year over year to $3 billion in its second quarter ended Aug. 1. Store openings, higher sales at existing locations, and the skincare product purveyor's acquisition of British beauty retailer Space NK drove the gains.Ulta opened 14 net stores during the quarter, bringing its total to 1,622 as of Aug. 1. That includes 1,534 in the U.S. and 88 in international markets, over 80 of which were obtained from its purchase of Space NK.The company's comparable sales, which measure revenue at stores and e-commerce sites open for at least 13 months, rose 3.8%.Ulta is doing a solid job of managing its inventory levels and keeping a lid on expenses. Its operating income jumped 10.1% to $379.6 million.All told, Ulta's earnings per share climbed 13.3% to $6.55. That topped Wall Street's estimates, which had called for per-share profits of $6.20.The sell-off is creating an opportunity for investorsSome analysts pointed to Ulta's muted traffic growth and higher promotional activity, which weighed slightly on its gross margin, as potential concerns. But there wasn't much to not like about the cosmetics seller's Q2 report.Moreover, management raised its forecast for full-year net sales and operating income growth to 6.7%-7.2% and 8.3%-9.3%, respectively. It also boosted its projection for earnings per share to $28.70-$29.00."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," CEO Kecia Steelman said.With Ulta's shares now trading at roughly 18 times its earnings projections, value-focused investors may wish to consider buying its stock at a discount.If you decide to invest, you'll likely be buying alongside Ulta. The beauty products leader intends to buy back up to $1 billion worth of its shares by the end of fiscal 2026.Should you buy stock in Ulta Beauty right now?Before you buy stock in Ulta Beauty, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ulta Beauty wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info