Shares of cosmetics chain Ulta Beauty plummeted close to 30 percent Friday after it said sales are slowing.
Comparable sales in the second quarter grew 6.2 percent, below expectations for growth of 6.7 percent. Ulta, which operates about 1,200 stores, also slashed its growth forecast for the year to 4 percent to 6 percent, down from 6 percent to 7 percent.
On an earnings call on Friday, Chief executive Mary Dillon blamed the cosmetics slow-down on a lack of “newness and innovation” in products, which is causing “headwinds in the US market.”
Shares closed down $99.72, to $237.73, marking its worst one-day performance since it listed on the Nasdaq stock market in 2007.
“Ulta has been gaining market share, but they have masked what’s been going on in the beauty industry,” Loop Capital analyst Anthony Chukumba told The Post. “The weakness in the sector caught up with them.”
Among the brands Ulta is counting on for growth is the three-year-old Kylie Cosmetics line, founded by reality TV star Kylie Jenner.
As The Post exclusively reported on July 28, sales of Jenner’s line have been declining, according to a report by Rakuten Intelligence.
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