Believe it or not, Ulta Beauty (ULTA) was trading at more than $300 a share just four months ago. Today, the cosmetics and beauty product merchant has fallen to the bottom of the S&P 500 after an analysts predicted hard times.
The stock fell more than 8.5% on Thursday to close at $190.16 a share, which makes it the worst-performing stock in the index.
According to Theflyonthewall.com, Cleveland Research downgrade s Ulta Beauty from Buy to Neutral, predicting an expected slowdown in cosmetics, increased promotions that will make comparable-store sales and earnings upside to be more difficult in coming quarters.
Shares of Ulta have fallen almost 40% since hitting a 52-week of $314.86 in June. Today, the stock dipped as low as $189.50 a share.
But Ulta’s charm began to wane over the summer when Amazon began expanding its packaged beauty products.
In August, the stock suffered a sharp pullback after worries about slowing same-store sales overshadowed estimate-beating quarterly revenue and profit. A few days later, BMO’s Shannon Coyne and her team downgraded the stock to Hold, warning that the beauty sector is gearing up for an ugly market share war.