$ULTA Sell The Rallies, Don't Buy The Dips
We expect weakness to continue in ULTA.
There was quite a bit of technical damage done last week and we are targeting $184 to $194 on the downside.
Ulta Beauty (NASDAQ:ULTA) went into a freefall last month after a soft Q2 earnings report and warning on a July to August slowdown in color cosmetics sales.
During the earnings call (transcript), Ulta execs stated that there's been a "disruption in the makeup category" that accelerated over the last several weeks. "After several years of very strong performance, growth in the makeup category has been decelerating over the last two years, but recently turned negative," noted Ulta CEO Mary Dillon.
Surveying the scene, Oppenheimer warns that the makeup malaise could last the balance of the year as the comparable sales marks will be tough to match, but sees value for long-term ULTA investors at the current trading price.
As always, trade with caution and use protective stops.
Good luck to all!
There was quite a bit of technical damage done last week and we are targeting $184 to $194 on the downside.
Ulta Beauty (NASDAQ:ULTA) went into a freefall last month after a soft Q2 earnings report and warning on a July to August slowdown in color cosmetics sales.
During the earnings call (transcript), Ulta execs stated that there's been a "disruption in the makeup category" that accelerated over the last several weeks. "After several years of very strong performance, growth in the makeup category has been decelerating over the last two years, but recently turned negative," noted Ulta CEO Mary Dillon.
Surveying the scene, Oppenheimer warns that the makeup malaise could last the balance of the year as the comparable sales marks will be tough to match, but sees value for long-term ULTA investors at the current trading price.
As always, trade with caution and use protective stops.
Good luck to all!
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We are not financial advisors. Always conduct your own research and read our full disclaimer at insiderfinancial.com/disclaimer/
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