Ulta Beauty shares fell 4% to $517.18 in Friday trading despite reporting a second-quarter earnings beat and raising its full-year guidance, with e.l.f. Beauty also slipping 2% to $103.96 on sympathy selling. The company posted net income of $282 million, or $6.55 per share, beating the $6.20 estimate, while revenue grew 8.9% to $3.04 billion, above the $2.99 billion consensus. Comparable store sales rose 3.8%, well ahead of the expected 2.3%, and management lifted full-year EPS guidance to $28.70 to $29, sales growth to 6.7% to 7.2%, and comp sales to 3.2% to 3.7%. The SPDR S&P Retail ETF rose 0.7% and the SPDR S&P 500 ETF Trust gained 0.49%, indicating the drop was isolated to Ulta Beauty rather than a sector or macro event. Analysts view the decline as profit-taking after a strong run, noting a similar pattern in prior quarters, with potential support near the $500 level and a $1.8 billion buyback program offering downside buffers.
Ulta Beauty IncUlta shares fell 4% despite an earnings beat and raised guidance, attributed to profit-taking after a strong run.
ELF Beauty Ince.l.f. Beauty slipped 2% on sympathy selling following Ulta Beauty's 4% decline.
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