My daughters and wife all shop at Ulta. They buy their supplies no where else and have done this mostly. I had the chance to take my daughter last weekend and the place was packed with women. Of all ages. The line to checkout was consistently 2 - 3 people over the 45 min I was in the store. I don't get the earnings miss at all; The feedback from my daughters is all positive and that their friends shop there for their stuff as opposed to sally, the mall, or drug stores. Very odd price action today.
One store does not a company make... they are guiding 100 MM lower in sales over the
next 3-6 months... imagine having to write down 100 mm in inventory (perishable)... company
is in trouble... stock will tank to under 70.... no compelling reason to own ULTA until they
are back on track...
I disagree, rad. Like Jed said, ULTA is the Home Depot for women. He's right on. This is a long term buy that will include a stock split in the next couple of years. My wife will be visiting our local ULTA tomorrow. Support our stock.
Back by Ulta today with my daughter. There was a line to check out... around 25 people. The store had probably 80-100 people in it. The salon was filled and lots of people trying stuff. Employees were very helpful to my daughter.
You are absolutely right, Jed. ULTA has no true competitors. I tried to find a franchise to open in a fantastic location and could not find one. Nobody has a similar concept to compete with ULTA. In order to do so, you have to totally reinvent the wheel. That's why I bought back in today. This is a great opportunity.