Ulta Beauty Could Be Killing J.C. Penney's Biggest Growth Engine
Ulta Beauty (NASDAQ: ULTA) is the top beauty destination for U.S. teens, according to Piper Jaffray's latest "Taking Stock With Teens" survey. Ulta claimed a 38% mindshare in the fall survey, compared to a 26% share for its closest rival, LVMH's (OTC: LVMUY) Sephora.
That gap has been widening. In Piper's spring survey, 33% of respondents chose Ulta, and 31% chose Sephora. In last fall's survey, Sephora and Ulta were tied at 34%. Ulta's rise is bad news for LVMH, but it's even worse news for J.C. Penney (NYSE: JCP), which relies heavily on Sephora's store-within-a-store locations to attract shoppers.
Image source: Sephora.
Source Fool.com
