Ulta Beauty and e.l.f. Beauty Stocks Rebound After Earnings Reports
Following a post-earnings selloff, beauty stocks are rebounding sharply, with Ulta Beauty and e.l.f. Beauty leading the way. Both companies reported quarterly earnings that exceeded expectations and raised their full-year guidance, prompting a recovery in their stock prices. Ulta Beauty's stock increased by 4% to $538, while e.l.f. Beauty saw a 5% rise to $108.92. This rebound comes amidst a generally softer session for large-cap benchmarks, indicating a targeted sector move rather than a broad market rally.
Ulta Beauty's stock had previously fallen by 4% to $517.18 despite a strong Q2 2026 performance, where it reported a net income of $282 million, or $6.55 per share, surpassing the consensus estimate of $6.20. Revenue also grew by 8.9% to $3.04 billion, exceeding expectations. The company raised its full-year earnings per share guidance to between $28.70 and $29, up from the previous range of $28.36 to $28.80, and increased its annual sales growth target.
CEO Kecia Steelman emphasized the company's disciplined execution and the successful implementation of their Ulta Beauty Unleashed strategy. In contrast, e.l.f. Beauty's stock has been on a strong upward trajectory, having risen 37% year-to-date through Friday's close, while Ulta Beauty's stock was down 14% over the same period. This divergence in performance highlights the different market positions of the two companies.
Additionally, Target's stock is down 1% to $161.52, despite a significant year-to-date gain of 71%. The recent conclusion of the Ulta Beauty shop-in-shop partnership within Target stores has led to a shift in beauty retail dynamics, with Target launching its own beauty concept in over 600 stores. Investors are now closely monitoring whether Ulta Beauty can reclaim its pre-earnings level of $544.99 and if e.l.f. Beauty can maintain its position above $105.
As the beauty sector continues to navigate these changes, upcoming quarterly reports from both companies will be crucial in determining their future trajectories. Investors are advised to approach these stock movements with caution, considering the volatility and the potential for further market shifts.
