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Cosmetics Stocks Slump Midday as Amazon Announces Beauty Store for Professionals

Investing.com - The beauty sector slumped on Monday after it learned it faces more competition from Amazon (NASDAQ:AMZN). The e-commerce giant launched a new service for professionals in the beauty space.

Amazon announced it had launched Amazon Professional Beauty Store and will offer professional stylists, barbers and estheticians beauty supplies that are usually found in salons and spas.

Professional products will only be available with a license.

The news puts more pressure on Sally Beauty, which is already down from disappointing quarterly results as the retailer struggles to compete with online sellers.

Sally Beauty (NYSE:SBH) fell 9.5%, while Ulta Beauty (NASDAQ:ULTA) was down 2.4% and Revlon (NYSE:REV) declined 2.3%. Amazon inched down 0.2%.

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