Jim Cramer urged caution on Thursday night despite strong earnings beats from major retailers, as Ulta Beauty Inc. (NASDAQ:ULTA), Lululemon Athletica Inc. (NASDAQ:LULU), and DocuSign Inc. (NASDAQ:DOCU) all saw significant after-hours gains.
What Happened: “We talk about how hard it is to take something off the table but sometimes you have to,” Cramer the host of CNBC’s “Mad Money” posted on X. “When you see LULU and ULTA and DOCU roar it’s the last thing you want to do but you need to be safe and sensible, too.”
Ulta Beauty led the surge, jumping 12.16% in after-hours trading after reporting third-quarter earnings of $5.14 per share, handily beating analyst estimates of $4.54. The beauty retailer posted revenue of $2.53 billion, exceeding expectations of $2.5 billion, with comparable sales rising 0.6%.
Lululemon shares climbed 9.19% after hours following strong international growth. The athletic apparel maker reported revenue of $2.4 billion and earnings of $2.87 per share, both topping Wall Street forecasts. International revenue soared 33% year-over-year, helping offset slower 2% growth in the Americas.
DocuSign rounded out the impressive showing with shares rising 14.60% after hours. The e-signature company posted adjusted earnings of 90 cents per share on revenue of $754.8 million, beating analyst expectations on both metrics. Subscription revenue grew 8% year-over-year to $734.7 million.
Despite celebrating his bullish calls on both Ulta and Lululemon, Cramer’s cautionary tone reflected broader market concerns about maintaining gains. “Very strong night, and I have to tell you I was sweating the program on both my bullish calls on LULU and on ULTA,” he noted on X.
The strong performances come as retailers navigate a challenging economic environment. Ulta’s gross profit margin declined to 39.7% due to higher costs, while Lululemon’s inventory levels increased 8% to $1.8 billion.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
