Why Ulta Beauty Shares Are Falling Today
Portfolio Pulse from Nabaparna Bhattacharya
Ulta Beauty, Inc. (NASDAQ:ULTA) shares are falling due to executives cautioning about a deceleration in demand across categories in Q1. Despite this, the company reaffirmed its annual comparable sales growth target of 4% to 5% and expects FY 2024 revenue to be between $11.7 billion and $11.8 billion. The news also negatively impacted shares of E.L.F. Beauty, Inc. (NYSE:ELF), Coty Inc. (NYSE:COTY), and Estee Lauder Companies, Inc. (NYSE:EL). Investors can gain exposure to ULTA through Neuberger Berman ETF Trust Neuberger Berman Next Generation Connected Consumer ETF (NYSE:NBCC) and VictoryShares US Multi-Factor Minimum Volatility ETF (NASDAQ:VSMV).
April 03, 2024 | 5:32 pm
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NEGATIVE IMPACT
Coty Inc. shares face downward pressure following Ulta Beauty's announcement, reflecting industry-wide challenges.
Coty Inc., as a competitor in the beauty sector, is affected by the same slowdown in demand that Ulta Beauty reported.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Estee Lauder Companies, Inc. shares also drop, influenced by Ulta Beauty's reported slowdown in demand.
Estee Lauder, being in the same industry as Ulta Beauty, is likely to experience similar market pressures due to the reported demand deceleration.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
E.L.F. Beauty shares are negatively impacted by the news from Ulta Beauty, indicating a broader industry slowdown.
As a peer in the beauty industry, E.L.F. Beauty is likely to be affected by the same market conditions that are impacting Ulta Beauty.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
NBCC ETF, which includes exposure to ULTA, may see short-term impact due to Ulta Beauty's reported demand slowdown.
Given NBCC ETF's exposure to Ulta Beauty, the ETF's performance may be indirectly affected by the demand deceleration in Ulta's market.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEGATIVE IMPACT
Ulta Beauty shares are falling due to a deceleration in demand, impacting investor confidence despite reaffirming annual growth targets.
The deceleration in demand directly impacts Ulta Beauty's short-term stock performance, but reaffirmed growth targets may mitigate some concerns.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
VSMV ETF, holding ULTA stock, might experience a short-term negative impact following Ulta Beauty's demand slowdown news.
The VSMV ETF, due to its inclusion of Ulta Beauty stock, may be negatively impacted in the short term by the slowdown in demand affecting Ulta.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50