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Ulta Beauty issues warning of slowdown in business, causing stock to plummet


Apr 3, 2024

Ulta Beauty shares plummeted nearly 15% in intraday trading on Wednesday after the beauty products retailer issued a warning about a slowdown in its business. CEO Dave Kimbell disclosed that in the first two months of its fiscal first quarter, the company has experienced a decrease in sales across different price points and segments. This decline was more significant and earlier than anticipated.

Kimbell stated that if the current slowdown continues, Ulta expects its comparable store sales for the current quarter to be at the lower end of its previous forecast, which predicted a low-single-digit percentage gain. Despite this setback, Kimbell expressed optimism that the pullback would lessen in the latter part of the year.

Ulta is facing tough competition, particularly in the prestige makeup and hair care product categories, which is also impacting its performance. As a result of this warning, Ulta shares dipped into negative territory for the year, falling by 14.6% as of 1:45 p.m. ET. Additionally, other companies in the beauty sector, such as Estee Lauder and Bath & Body Works, also saw their shares decline by 4.3% and 3%, respectively.

By editor

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