Why Ulta Beauty Inc Shareholders Have Nothing to Worry About

Ulta Beauty (NASDAQ: ULTA) investors have recently had to deal with an unexpected turn of events -- underperformance. Since hitting all-time highs over $313 per share in early June, the stock is down over 20%.

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The weakness isn't due to any missteps from the company but recent moves by department stores like Lord & Taylor, Macy's, and J.C. Penney to offer large discounts on high-end cosmetics. The moves are somewhat unprecedented in the industry, as prestige makeup has long been an item department stores avoided discounting at all costs. However, in the wake of large declines in mall and department store traffic, drastic measures are now necessary.

Source: Fool.com