1303 ET - Ulta's overall second quarter report strengthens the company's case on Wall Street, though there were several points that will likely keep some investors on the sidelines, UBS analysts say in a note. On one hand, the beauty retailer's revenue growth, productivity and capital returns are now working together for a better earnings model, the analysts say. On the other hand, transactions were about flat, a higher average ticket drove the comparable-sales increase, promotional activity rose and gross margin declined modestly, the analysts say. "These factors warrant attention. However, they do not undermine the broader conclusion that execution is improving, the category is steady and ULTA is well-positioned," they say. Shares fall 3.8%.