3 Things About Ulta Beauty That Smart Investors Know
Ulta Beauty (NASDAQ: ULTA) isn't your average retailer stock. The spa and beauty products specialist earns unusually high profits, after all, and has been seeing excellent customer traffic levels even as consumer spending rates slowed through early 2023.
The stock's returns have turned negative recently, though, due to Wall Street worries about a potential price-cutting war ahead in the makeup industry. But smart investors know that Ulta Beauty has a lot going for it as a long-term holding right now. Let's take a look at a few critical, but less followed aspects of this retailing business.
Ulta Beauty sells beauty products that cover every price point from mass market to luxury. This approach allows it to cater to a wide range of shopper preferences. Toss in the company's large footprint -- both online and in physical retail -- and you've got a recipe for market-thumping profitability.
Source Fool.com
