United States companies Ulta Beauty and Lululemon have seen a beyond predicted rise in shares and profits for the last quarter.
Shares of athletic apparel company Lululemon jumped in extended trading on Thursday, and cosmetic retailer Ulta Beauty raised its annual profit forecast on the same day.
Lululemon reported better than expected quarterly results, as well as raising its full-year outlook as revenue grew 9% up to $2.4 billion, above analysts predictions, and net income rose more than 40% to $351.9 million.
This comes after CEO Calvin McDonald acknowledged that last quarter acknowledged that the company had a “newness” problem, with a lower conversion rate due to fewer seasonally updated products.
Meanwhile Ulta Beauty saw its shares up more than 11.5% in aftermarket trading.
Its success signalled an increase in demand for perfumes and makeup during the holiday shopping season and followed its early deals in November and heavy discount promotions during Black Friday.
These strong results come at a time when beauty giants Estee Lauder and L'Oreal have seen reduced demand in the U.S. for their higher end beauty products and perfumes.
As at 1:30 pm (AEDT), Friday 6 December, Lululemon Athletica Inc's (NASDAQ: LULU) stock price was US$344.81. It's market cap was $42.33 billion. Meanwhile, Ulta Beauty Inc (NASDAQ: ULTA) was trading at $392.87. Ulta's market cap was $18.51 billion.