Why the Coronavirus Is Weighing on These Beauty Stocks
While the coronavirus pandemic has been a major headwind for most companies, it represents a particular challenge for sellers and makers of makeup and beauty products. Coty (NYSE: COTY), the owner of Cover Girl and Rimmel brands, has posted a 52% share decline so far this year, while Ulta Beauty (NASDAQ: ULTA), seller of cosmetics and skincare products, has fallen 29%. At the same time, the S&P 500 Index slipped 19%.
The COVID-19 outbreak, which started in China in January and spread throughout the world over the past two months, has created supply-chain disruptions for a wide variety of companies. It also has hurt demand from tourists as travel has been halted and forced stores to temporarily shut their doors.
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Source Fool.com
