Ulta Beauty Has a Male Investor Problem
Even in hard economic times, many women love to apply makeup to improve their looks, and aren’t concerned about its actual value insomuch as the product does what it says it will. Therefore, beauty brands and retailers typically do well. Enter Ulta Beauty, the retail chain store that’s planning to increase its stores by 100 this year to 970 stores nationwide, and boasts a stock price that has risen 40 percent year to date. So why are male investors shying away from the brand?
Total Retail's Take: Ulta has been a consistent performer, posting quarter-after-quarter of solid sales and income growth. The hesitancy amongst male investors to back the company apparently stems from a lack of understanding of the makeup business, and an unwillingness on their part to learn it. Well, their loss. Ulta is positioned for future success, and those that have invested in the retailer stand to profit.