Ulta Beauty reported solid earnings with operating margin beating expectations by 120 bps and raised guidance. The company is well-positioned with its mass-to-prestige price range and strong loyalty program, making it a durable retail name even in a discretionary slowdown.
Starbucks' US business is turning around with strong comp sales of 6.2%, operating margins expanding, and the company raised full-year guidance, showing confidence in continued momentum from cost savings and the 'Back to Starbucks' plan.