Ulta sees slow beauty sales

The beauty industry boom is slowing after enjoying a few years of great sales, especially during the pandemic.

Ulta Beauty CEO Dave Kimbell told investors this week that the beauty retailer faced slow demand in the first quarter of the year. Share prices slid almost 15% on Wednesday on the revelation.

According to Kimbell, the demand in the beauty category is falling faster than anticipated.

Shares of other beauty brands, including E.L.F.Beauty, Estee Lauder and Coty, also declined the same day.

Kimbell cautioned about weakening demand for beauty products in the US. His warning comes as a surprise since the industry experienced robust growth even after the pandemic, despite inflation.

But now, factors such as economic pressures, rising credit card debt, geopolitical conflicts, and the upcoming presidential election have begun to influence consumer spending behaviors.

Ulta anticipates a single-digit growth and forecasted net sales of $11.7 billion to $11.8 billion for the 2024 fiscal year.