Why Ulta Beauty Shares Are Falling Today

Coty Inc. Class A +1.00%
Estee Lauder Companies Inc. Class A -0.28%
e.l.f. Beauty, Inc. -6.44%
Neuberger Berman Next Generation Connected Consumer ETF -0.38%
Ulta Salon, Cosmetics & Fragrance, Inc. -2.73%

Coty Inc. Class A

COTY

11.15

+1.00%

Estee Lauder Companies Inc. Class A

EL

144.41

-0.28%

e.l.f. Beauty, Inc.

ELF

156.73

-6.44%

Neuberger Berman Next Generation Connected Consumer ETF

NBCC

21.74

-0.38%

Ulta Salon, Cosmetics & Fragrance, Inc.

ULTA

413.50

-2.73%

Ulta Beauty, Inc. (NASDAQ:ULTA) shares are falling on Wednesday

The company’s executives cautioned about a deceleration in demand across categories in the first quarter, Reuters reported.

Ulta expects its overall category to grow moderately in the mid-single-digit range, marking a shift from previous years of robust expansion, the report read.

“What we’ve seen so far is a slowdown in the total category across price points and segments. That’s a bit earlier and a bit bigger than we thought,” CEO David Kimbell told J.P. Morgan analysts during a fireside chat, Reuters added.

However, while reporting fourth-quarter results last month, the company said it expects fiscal year 2024 revenue to be between $11.7 billion and $11.8 billion. 

The company projected fiscal year 2024 earnings in the range of $26.20 to $27 per share.

In a press release dated March 14, Kimbell stated, “We enter 2024 well-positioned to drive strong top and bottom-line growth, build on our foundational capabilities, and unlock further advantages of our differentiated model.”

On Wednesday, the company reaffirmed its annual comparable sales growth target of 4% to 5%, Reuters added.

The company’s shares were on track for their most significant decline since May 26, 2023.

According to Benzinga Pro, ULTA stock has lost over 19% in the past year. Investors can gain exposure to the stock via Neuberger Berman ETF Trust Neuberger Berman Next Generation Connected Consumer ETF (NYSE:NBCC) and VictoryShares US Multi-Factor Minimum Volatility ETF (NASDAQ:VSMV).

The news also dragged down peers E.L.F. Beauty, Inc. (NYSE:ELF), Coty Inc. (NYSE:COTY), and Estee Lauder Companies, Inc. (NYSE:EL).

Price Action: ULTA shares are trading lower by 14.2% to $446.12 on Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Wikimedia Commons

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