Competitive PressureDistribution pressure continues to increase. Beauty distribution competition, including Amazon's push into the category, is a core concern, with the latest report on competition ramping being a major red flag.
Leadership ConcernsKey Leaders Departing. ULTA announced CEO Dave Kimbell would be stepping down immediately—replaced by current President and COO Kecia Steelman, which seems sudden and concerning.
Market PerformanceUlta's prestige makeup segment is losing market share due to its reliance on legacy brands and unsuccessful diversification efforts.