Shares of Ulta Salon, Cosmetics & Fragrances shot up 17 percent Friday.
Investors were encouraged because new products, expanded in-store boutiques and a strong loyalty program helped the company boost its fiscal second-quarter profit by 28 percent.
The company reported after the market closed Thursday that it earned $44.9 million, or 70 cents per share, for the quarter that ended Aug. 3. That’s up from $35 million, or 54 cents per share, in the second quarter last year. Revenue increased nearly 25 percent to $601 million from $481.7 million.
The results far exceeded market expectations. Analysts were anticipating earnings of 67 cents per share on revenue of $588.4 million.
Ulta said it expects to earn between 71 cents and 74 cents per share for its fiscal third quarter on revenue between $613 million and $623 million.