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Tougher comps and more competition are to blame for slowdown.
By: Happi Staff
May 31, 2024
After a slow start to 2024, Ulta Beauty CEO Dave Kimball continues to pump the brakes on beauty. The retailer cut its full-year sales forecasts to $11.5-11.6 billion, down from $11.7-11.8 billion earlier this year.
In a statement, Kimball said, “I remain confident in our differentiated model, the resilience of the beauty category, and our ability to execute against our plans, but we have adjusted our annual guidance as we anticipate the dynamics we faced in the first quarter to continue for the balance of the year.”
As previously reported in Happi, US prestige beauty sales gains slipped to 9%, while mass market sales increases fell to 2%, according to Circana.
The declines come as competition in the retail beauty space heats up. Ulta teamed with Target to create shop-in-shop formats in more than 1,000 locations. Meanwhile, Sephora and Kohl’s partnership is expected to climb to 1,050 stores by year-end.
These moves come as Amazon and other eCommerce sites make more forays into beauty. For example, Orveon is making big bets with TikTok and other social media channels.
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