• Mon. Apr 15th, 2024

Ulta Beauty Shares Plummet Following Slowdown in Business

BySamantha Jones

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

On Wednesday, Ulta Beauty reported a slowdown in business during the first two months of its fiscal first quarter. This led to a significant decline of nearly 15% in intraday trading of its stock. 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 also 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 the 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 Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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