Tuesday, 02 January 2024 12:17 GMT

Why Did Ulta Beauty Shares Rise After-Hours Today?


(MENAFN- AsiaNet News)

Ulta Beauty shares rose over 4% in extended trading on Thursday, after the beauty retailer raised its annual forecast following a strong quarterly report.

On Stocktwits, the retail sentiment for the stock climbed multiple notches higher, reaching an 'extremely bullish' rating (97/100), and message volume increased from 'high' to 'extremely high.'

Retail traders noted an instant surge followed by a pullback in Ulta's stock in the post-market trading session and were cautiously optimistic about gains in Friday's session.

"$ULTA The dip back to 540 was ridiculous. Great quarter, conservative guidance. Playing it safe," a user posted. "Would be very surprised if this doesn't wind up at least 550+ tomorrow."

Second-quarter sales rose 9%, and net profit came in at $5.78 per share, higher than analysts' expectations on both counts.

The multi-brand beauty retailer, which sells its branded products and those from Estee Lauder, MAC, and Clinique, bumped up its annual revenue and EPS forecast. There was growth across all major categories, driving market share growth and better-than-expected profit, CEO Kecia Steelman said in a statement.

The forecast reflects "both the strength of our year-to-date performance and our caution around how consumer demand may evolve in the second half of the year," while "near-term uncertainty persists," Steelman said.

As of last close, Ulta stock is up 22% year-to-date, more than double the gains in the benchmark S & P 500 index.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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