3 Things Ulta Management Wants You to Know

Shares of Ulta Salon (NASDAQ: ULTA), the "all things beauty" cosmetics retailer, have come under pressure in the wake of its second-quarter earnings report. The sell-off certainly wasn't due to Ulta's actual results, which beat analyst estimates across the board. Revenue grew 20.6% over last year, while comparable-store sales grew an impressive 11.7%. Operating margins expanded to 14% compared with 13.5% in the year-ago quarter, and earnings per share grew 28%.

Given the stellar results, why did the stock take a tumble? The answer lies in the perceived fears of a slowing beauty industry, as well as rising competition from department stores and Amazon (NASDAQ: AMZN).

These concerns were raised on the conference call, and Ulta's management had answers.

Source: Fool.com