Ulta Beauty reported that second-quarter earnings and revenue missed expectations. Same-store sales declined, leading to lowered projections for the fiscal year. CEO Dave Kimbell defended the brand's engagement and operational strength. He attributed the disappointing results to normalizing demand post-pandemic, increased competition, and more value-conscious consumers. The cosmetics retailer is addressing challenges by enhancing its digital presence and loyalty programs. Shares dropped 7% after hours, and the stock is down 25% year-to-date.