Data News > Ulta Beauty Stock Plummets as CEO Warns of Slowing Demand
- Ulta Beauty warns of a significant decline in business, causing a 15% drop in stock value
- CEO Dave Kimbell attributes the slowdown to industry-wide demand issues
- The company's first-quarter comparable-store sales are expected to increase at the lower end of previous guidance
- Ulta's stock is on pace for its biggest drop in four years
- The beauty retailer's management warns of moderate mid-single digit sales growth
Ulta Beauty, Inc. faced a significant decline in business on April 3, 2024, causing a 15% drop in stock value. CEO Dave Kimbell attributed the slowdown to industry-wide demand issues, warning of moderate mid-single digit sales growth. The company's first-quarter comparable-store sales are expected to increase at the lower end of previous guidance, leading to its stock being on pace for its biggest drop in four years.
During the JPMorgan 10th Annual Retail Round Up Conference, Ulta Beauty's management warned investors that its upcoming financial results could be on the low end of its previous guidance. This announcement caused the stock to plummet, with shares sinking about 15% in intraday trading. Despite the drop, the stock now trades at a good price for investors who think bigger-picture than a few weeks of financial results.
Ulta Beauty's CEO, Dave Kimbell, stated that while sales are still growing, it is at a slower-than-expected rate. This announcement came as a surprise to many, causing Ulta's stock to become the worst performer in the S&P 500 on Wednesday. The company's warning of a significant decline in business and the subsequent stock drop has raised concerns among investors and analysts.
The beauty retailer's management blamed a 'soup of activity' for the slowing demand, with industry-wide issues affecting same-store sales growth. Ulta expects first-quarter comparable-store sales to increase at the lower end of its previous guidance, further contributing to the negative outlook for the company's financial performance.
Ulta Beauty, Inc. faced a significant decline in business on April 3, 2024, causing a 15% drop in stock value. CEO Dave Kimbell attributed the slowdown to industry-wide demand issues, warning of moderate mid-single digit sales growth. The company's first-quarter comparable-store sales are expected to increase at the lower end of previous guidance, leading to its stock being on pace for its biggest drop in four years.
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Ulta Beauty Stock Plummets as CEO Warns of Slowing Demand
By KlickAnalytics Data Insights | April 3, 2024 08:01PM ET
Key Points
- Ulta Beauty warns of a significant decline in business, causing a 15% drop in stock value
- CEO Dave Kimbell attributes the slowdown to industry-wide demand issues
- The company's first-quarter comparable-store sales are expected to increase at the lower end of previous guidance
- Ulta's stock is on pace for its biggest drop in four years
- The beauty retailer's management warns of moderate mid-single digit sales growth
Ulta Beauty, Inc. faced a significant decline in business on April 3, 2024, causing a 15% drop in stock value. CEO Dave Kimbell attributed the slowdown to industry-wide demand issues, warning of moderate mid-single digit sales growth. The company's first-quarter comparable-store sales are expected to increase at the lower end of previous guidance, leading to its stock being on pace for its biggest drop in four years.
During the JPMorgan 10th Annual Retail Round Up Conference, Ulta Beauty's management warned investors that its upcoming financial results could be on the low end of its previous guidance. This announcement caused the stock to plummet, with shares sinking about 15% in intraday trading. Despite the drop, the stock now trades at a good price for investors who think bigger-picture than a few weeks of financial results.
Ulta Beauty's CEO, Dave Kimbell, stated that while sales are still growing, it is at a slower-than-expected rate. This announcement came as a surprise to many, causing Ulta's stock to become the worst performer in the S&P 500 on Wednesday. The company's warning of a significant decline in business and the subsequent stock drop has raised concerns among investors and analysts.
The beauty retailer's management blamed a 'soup of activity' for the slowing demand, with industry-wide issues affecting same-store sales growth. Ulta expects first-quarter comparable-store sales to increase at the lower end of its previous guidance, further contributing to the negative outlook for the company's financial performance.
Ulta Beauty, Inc. faced a significant decline in business on April 3, 2024, causing a 15% drop in stock value. CEO Dave Kimbell attributed the slowdown to industry-wide demand issues, warning of moderate mid-single digit sales growth. The company's first-quarter comparable-store sales are expected to increase at the lower end of previous guidance, leading to its stock being on pace for its biggest drop in four years.
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