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Shares of the Ulta Beauty cosmetics chain fell nearly 30% Friday after announcing a slowdown in sales.
Comparable sales in the second quarter increased 6.2%, which is below expectations for growth of 6.7%. Ulta, which operates approximately 1,200 stores, also reduced its growth forecast for the year from 4% to 6%, down from 6% to 7%.
On Friday, chief executive, Mary Dillon, said the slowdown in the cosmetics industry was due to lack of novelty and innovation in products, causing "headwinds in the US market".
The shares closed down $ 99.72 to $ 237.73, the worst single – day performance since their Nasdaq IPO in 2007.
"Ulta has gained market share, but they have hidden what is happening in the beauty industry," said Anthony Chukumba, an analyst at Loop Capital. "The weakness of the sector has caught up with them."
Among the brands that Ulta is counting on for growth is the Kylie Cosmetics line, founded 3 years ago, by reality TV star Kylie Jenner.
As reported exclusively by The Post on July 28, sales of the Jenner line declined, according to a report by Rakuten Intelligence.
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