Ulta Magnificence (NASDAQ:) reported second-quarter earnings that fell in need of analyst expectations, whereas additionally chopping its full-year outlook, sending shares down about 8% in after-hours buying and selling.

The sweetness retailer posted adjusted earnings per share of $5.30, lacking the analyst consensus of $5.51. Income grew 0.9% YoY to $2.55 billion, however fell in need of estimates of $2.62 billion.

Comparable gross sales decreased 1.2%, in comparison with an 8.0% improve in the identical quarter final 12 months.

Ulta Magnificence considerably lowered its fiscal 2024 steerage, now anticipating EPS of $22.60-$23.50, nicely under the earlier analyst consensus of $25.26.

The corporate additionally decreased its full-year income forecast to $11-11.2 billion, down from the $11.495 billion analysts have been anticipating.

CEO Dave Kimbell acknowledged the disappointing outcomes, stating, “Whereas we’re inspired by many constructive indicators throughout our enterprise, our second quarter efficiency didn’t meet our expectations, pushed primarily by a decline in comparable retailer gross sales.”

The corporate’s gross revenue margin contracted to 38.3% from 39.3% a 12 months in the past, primarily attributable to decrease merchandise margins and deleverage of retailer mounted prices.

Working earnings fell to $329.2 million, or 12.9% of internet gross sales, in comparison with $391.6 million, or 15.5% of internet gross sales within the prior-year interval.

Regardless of the challenges, Ulta Magnificence continued its share repurchase program, shopping for again 549,852 shares at a value of $212.3 million in the course of the quarter.

The corporate additionally expanded its retailer community, working 1,411 shops on the finish of the quarter, a internet improve of 49 shops from the identical interval final 12 months.