Ulta Beauty Shares Drop Despite Earnings Beat and Raised Guidance
Despite reporting better-than-expected second-quarter earnings and raising full-year guidance, Ulta Beauty (NASDAQ:ULTA) shares fell by approximately 4% in early Friday trading. The company reported net income of $282 million or $6.55 per share—beating estimates—and revenue rose to $3.04 billion from $2.99 billion expected. Comparable store sales grew faster than anticipated, and e-commerce continued its strong performance with high teen growth rates. The decline in Ulta Beauty stock is being attributed largely to profit-taking after a recent rally rather than any negative developments within the company or sector. The SPDR S&P Retail ETF (XRT) rose 0.7%, while the broader market, as represented by the SPY index, remained flat, suggesting that this was not due to macroeconomic concerns. e.l.f. Beauty (NYSE:ELF), a smaller competitor in the beauty sector, also dipped slightly on sympathy selling but remains up significantly year-to-date.
Topics: e.l.f. Beauty guidance raise stock price movement sympathy selling Ulta Beauty