Jim Cramer Highlights Ulta Beauty For Its Strong High End Sales Despite A Recent Earnings Miss

Ulta Beauty, Inc. (NASDAQ:ULTA) made our Mad Money recap, as Jim Cramer shared his take on the stock and highlighted resilient consumer spending despite the Iran conflict. Cramer highlighted the company’s earnings and the following market reaction, as he said:

On a day when beauty conglomerate Estee Lauder confirmed it’s in discussions to combine with Spanish cosmetics company, Puig, an announcement that caused Estee Lauder’s stock to fall 7.7%, we thought it might be a good time to check in with Ulta Beauty. That’s long our favorite cosmetics retailer. About a week and a half ago, Ulta Beauty reported a mixed quarter with strong same-store sales, but also higher-than-expected costs that translated into a legitimate earnings miss. The next day, the stock tumbled 14%, and it’s now down almost 28% from its February all-time highs, a perch it is rarely that far from… We think it is a very good price… Consider today’s trip to Ulta Beauty. Kecia Steelman, a 35-year veteran of retail, told us a tale of non-promotion, of a consumer that’s spending upfront where the more expensive goods are and also on the sides and in the back where you can find bargains. I was surprised that high price point merchandise up front was moving well, good gross margins.

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Ulta Beauty, Inc. (NASDAQ:ULTA) provides cosmetics, skincare, haircare, and fragrance products. In addition, the company offers in-store beauty services, including hair, makeup, brow, and skin treatments.

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