• Sat. Apr 20th, 2024

Beauty Slowdown: Ulta Beauty’s 15% Intraday Trading Drop Amid Competition and Early Anticipated Challenges

BySamantha Jones

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

On Wednesday, Ulta Beauty reported a significant decline of nearly 15% in intraday trading as the company’s CEO Dave Kimbell explained that the beauty products retailer experienced a slowdown in business during the first two months of its fiscal first quarter. This 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 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 dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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