Why Ulta Beauty Stock Jumped 15% in June
Shares of cosmetics company Ulta Beauty (NASDAQ: ULTA) gained 15% in June, according to data provided by S&P Global Market Intelligence. Investors seem to have realized that the 24% drop the previous month was an overreaction to a mixed earnings report.
Ulta is the largest specialty beauty chain in the U.S. It has more than 1,300 physical stores as well as a robust online presence with 25,000 products from 600 brands. Its stores offer many beauty services as well, and the company brands itself as down-to-earth and relatable. This allows it to reach a large range of customers, from shoppers looking for better-priced products to those on the hunt for the latest high-end beauty trend.
The company was founded in 1990 and has built itself up to be the premier beauty retailer in the country. It has racked up a huge base of loyal customers: 95% of sales come from reward members. Aside from a dip at the beginning of the pandemic, Ulta consistently delivers robust sales growth and increasing profits.
Source Fool.com
