Here's Why Ulta Beauty Stock Popped Today
Shares of cosmetics retailer Ulta Beauty (NASDAQ: ULTA) popped on Friday after its financial results for the third quarter of 2024 came in above investors' expectations. Expectations were quite low and so now investors are rethinking things. And that's why Ulta Beauty stock was up about 9% as of 11:25 a.m. ET.
When an investor as great as Warren Buffett sells your stock, it tends to kill any buzz the market might have otherwise had. Ulta Beauty's same-store sales have stagnated in recent quarters, impacting revenue and profitability. And while investors don't know for sure that Buffett was involved, his company Berkshire Hathaway sold most of its position in the cosmetics stock last quarter.
In Q3, Ulta Beauty's same-store sales increased by almost 1%, which contributed to almost 2% growth in net sales. While that's meager growth, it was better than expected. Moreover, it motivated management to raise the lower end of its full-year guidance.
Source Fool.com