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Makeup malaise hits Ulta Beauty and peers

|About: Ulta Beauty, Inc. (ULTA)|By:, SA News Editor

Ulta Beauty (NASDAQ:ULTA) is in freefall 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.

Shares of Ulta Beauty are showing a 24.88% loss in premarket action after the surprise guidance cut. Estee Lauder (NYSE:EL) is down 1.28% premarket and Coty (NYSE:COTY) is off 2.57%. Shares of e.l.f. Beauty (NYSE:ELF) are down 0.90% in the early session. Revlon (NYSE:REV) isn't trading yet.

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