Ulta Beauty shares dropped 4.2% after the retailer reported a deceleration in comparable sales growth, despite beating Q2 earnings expectations.
Ulta Beauty beat Q2 estimates but guided down comparable sales growth to 2%-3% for the second half, driving a 4.2% drop and long-term underperformance versus the S&P 500.
The S&P 500 returned 15.7% over the past year and 2.9% over three months, outperforming Ulta Beauty.
Williams-Sonoma is cited as a rival that has grown 10% over the past year, outperforming Ulta Beauty.
Ulta Beauty shares fell 4.2% following a second-quarter earnings report that beat analyst estimates but signaled slowing growth. Management lowered its comparable sales outlook to 2%-3% for the second half of the year, overshadowing the company's revenue and earnings performance.
While Ulta surpassed Q2 revenue and earnings expectations, investor sentiment soured due to management's guidance of slowing comparable sales growth for the second half of the year.