Ulta Sees Sales Slowdown in Warning for Consumer Spending (1)

Ulta Beauty Inc. raised its full-year outlook after reporting second-quarter results that topped expectations, even as it warned of a potential pullback by consumers.

Comparable sales are expected to be flat to up by a low single-digit percentage in the second half of its fiscal year, Chris Lialios, Ulta’s interim chief financial officer, said on the cosmetics retailer’s earnings call.

That would be a slowdown from the 6.7% gain it posted in the second quarter, beating Wall Street expectations. The result capped a strong first-half performance that pushed the company to raise its full-year outlook.

“We continue to believe ...