• Sun. Apr 21st, 2024

Ulta Beauty Takes a Hit: CEO Warns of Slow Sales and Competition Drops Stock Price

BySamantha Nguyen

Apr 3, 2024
Ulta Beauty Issues Warning of Potential Business Slowdown, Stock Plummets

On Wednesday, Ulta Beauty’s stock experienced a significant decline of nearly 15% in intraday trading. This was due to the beauty products retailer reporting a slowdown in business during the first two months of its fiscal first quarter. CEO Dave Kimbell explained that the decline was seen across various price points and segments within the beauty category, which was larger and earlier than anticipated.

Kimbell warned that if this slowdown persists, Ulta Beauty expects current-quarter comparable store sales to be at the lower end of its previous guidance, which predicted a low-single-digit percentage gain. Despite the current challenges, Kimbell expressed optimism that the pullback will ease later in the year.

Ulta Beauty is also facing stiff competition, particularly in the prestige makeup and hair care product categories. This competition has had a direct impact on the company’s performance in the earlier months of the year. As a result of this news, Ulta Beauty’s shares fell into negative territory for the year as of Wednesday afternoon, with a 14.6% decline. The negative impact was also observed in other companies within the sector, such as Estee Lauder and Bath & Body Works, which experienced a drop of 4.3% and 3%, respectively.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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