From CNBC: 2024-04-03 12:13:40

Ulta Beauty CEO Dave Kimbell warned of cooling demand for beauty products, causing shares to drop 13%. Other beauty stocks, including E.L.F. Beauty, Estee Lauder, and Coty, also fell. Kimbell predicted mid single-digit sales growth for the year, noting a slowdown across price points and beauty categories, especially in prestige makeup and haircare.

Despite a trend of strong growth, beauty sales are slowing, impacting retailers like Ulta Beauty, Target, Kohl’s, and Macy’s. Kimbell highlighted economic pressures affecting beauty shoppers, leading to potential cutbacks. Ulta Beauty’s forecasted net sales for fiscal year 2024 range from $11.7 to $11.8 billion, with comparable sales expected to rise by 4-5%.

Ulta Beauty’s stock dropped to $447 midday, down 8% this year. Despite hitting a 52-week high in March, Ulta’s shares have trailed the S&P 500’s gains. Kimbell noted various factors affecting consumer spending, including credit card debt, geopolitical conflicts, and the upcoming presidential election.



Read more at CNBC: Ulta shares fall as CEO warns beauty demand is slowing