Ulta Beauty shares took a hit, dropping approximately 13% after CEO Dave Kimbell cautioned about a decline in the demand for beauty products. This warning also affected other companies in the same sector, such as E.L.F. Beauty, Estee Lauder, and Coty, which all experienced a decrease in their stock prices on Wednesday morning.
Kimbell expressed his concerns during an investor conference hosted by JPMorgan Chase, stating that the overall beauty category has experienced a slowdown. He mentioned that they had anticipated a moderation in growth for the year, but the actual decline has been more significant and earlier than expected.
Ulta Beauty had initially projected sales to increase in the mid single-digits for the year, but Kimbell’s remarks indicate that this may not be achievable due to the unexpected slowdown in demand. This trend has impacted various price points and beauty categories, posing a challenge for the company.
Source: www.cnbc.com