METAVERSE FASHION COUNCIL’s Post

Ulta Beauty's CEO, Dave Kimbell, raised concerns about a significant slowdown in beauty product demand at the recent JP Morgan Retail Round-Up Conference on April 3rd, sending shockwaves through the industry. This unexpected change in outlook has raised questions about Ulta's management team's ability to accurately forecast future business conditions, developing just weeks after the company reported strong quarterly earnings. Kimbell stated that Ulta had experienced a steeper and earlier decline in beauty sales than anticipated, impacting various product categories and price points. He pointed to factors like rising consumer credit card debt and economic uncertainty as potential reasons behind the spending pullback. This warning directly contradicts Ulta's previous earnings report issued in late March, where the company projected net sales of $11.7 billion to $11.8 billion for the current fiscal year, reflecting a healthy 4-5% growth in comparable sales. Notably, there were no crucial indications of weakening demand at that time. The sudden shift in tone caused Ulta's stock price to plummet, with shares dropping over 13% on the same day of the conference. The warning also impacted other beauty and cosmetics stocks, including E.L.F. Beauty, Estee Lauder, and Coty. This development raises serious concerns about the reliability of Ulta's forecasting abilities and the transparency of its communication with the market. Investors and analysts will be keeping a close eye on how the company navigates the current economic climate and achieves its growth targets in the coming quarters. Ulta's leadership should heed to demonstrate a deeper understanding of the factors affecting their business and provide more distinct guidance to rebuild trust with investors. Their ability to weather the demand slowdown and maintain their competitive edge will be critical in the upcoming months. #ultabeauty #retailindustry #skincare #earningswarning #managementcredibility #forecasting #consumerdemand #economicuncertainty #stockmarket #wallstreet #ir #investing #businessleadership #notfinancialadvice

🛍️💻🕶️Major retail companies are allegedly considering taking their company out of the public market. Our Managing Partner, Aron Bohlig shared his deep dive and thoughts on Why Nordstrom & Macy’s are considering going private, in this article from ModernRetail 💡 Key Insights: - Private companies typically operate with longer timeframes and aren't subject to the pressures of quarterly and annual earnings results - For public companies, the timeframe to achieve an ROI from investments in the public markets is generally 3 to 12 months. However, many new technology initiatives can take between 12 to 18 months to show returns - Value creation plans that take over 18 months to see returns can be challenging to execute in the public market. Drastic transformative moves that increase costs or reduce EBITDA could impact share prices #comcap #InvestmentBanking #DigitalRetail #modernretail Read the complete article here: https://lnkd.in/gu3Za-8B

This is the power of “smart money” in the markets. Warren Buffett just revealed that he bought Ulta Beauty (a company I own), and today the stock is up over 10%. What a wild ride! Especially since there’s no change in the company’s fundamentals — just this news. In the short term, “smart money” is one of the biggest market movers. This term refers to big institutional investors who have the power to influence markets. For those who don’t know, ULTA Beauty is a retailer that sells a variety of beauty products like cosmetics, skincare, haircare, and also offers salon services. The company has strong fundamentals and is in a solid competitive position (though competition is getting tougher). Before Warren Buffett’s buy was known, ULTA was trading at a price-to-earnings (PE) ratio of around 12-13, compared to its 5-year average of 22 PE. That’s almost like buying the company at half its usual price. Only time will tell how Buffett’s investment (and mine) in ULTA will turn out. For now, remember this: the best time to buy shares of a company is often right after a big drop or when the market is full of fear. Have a great day! Image source: The Wall Street Journal - #warrenbuffett #linkedin #investing #ulta

I think the impact of these two industry luxury leaders will be very interesting to watch. This article focuses more on the beauty side, but there are many less obvious impacts this will have on multiple industries. Jewelry, apparel, accessories, marketing, the list goes on. When you take two known names and structure them to be more profitable and leverage the best of the branded and marketing teams, get ready for an explosion of growth potential. This will also add to an even further divide in the retail sector between department stores following the wealth division in the US. Naming the large department stores now, Saks Fifth Avenue/Neiman Marcus Group, Nordstrom, Dillard's Inc., Von Mauer, Macy's, JCPenney, Kohl's, then discounters.... not many national choices but they all have very focused demographic groups. Stay tuned!

There are few retail chains that have consistently performed as well as Ulta Beauty, the darling of the open-air shopping center beauty sector. But if you were attending the J.P. Morgan 10th Annual Retail Roundup investor conference in New York City today, you heard slightly negative comments from Ulta CEO Dave Kimbell and CFO Paula Oyibo at their fireside chat shortly after 9 a.m. this morning. What they said was that based on softening sales over the past two months and recognizing that Ulta’s growth rate is coming down faster than they anticipated, management expects a significant deceleration in growth across the beauty category. Significant? Whoa!!! That pessimistic commentary spooked investors today and sent shares of Ulta Beauty down sharply to close 15.34% down in what must be a market overreaction. The Ulta warning also dragged down e.l.f. Beauty off more than 10%, Estée Lauder down 4% and others, but that’s Wall Street for you. As we all know, the cosmetics space is a resilient category whereby Ulta Beauty and SEPHORA are among the strongest omnichannel retail chains. Keep in mind that just a few weeks ago, Ulta reported a 10% increase in fourth-quarter sales, remarkable, given the soft economy, and aggressive plans to expand internationally through a joint venture in Mexico.

The Curious Case of Struggling Department Stores: NORSTROM GROUP LIMITED & Macy's Wall Street has written off stores like Macy's and Nordstrom. Sales are slumping, their future looks uncertain, and stock prices reflect that pessimism.📉 Savvy investors are starting to circle. Why? These stores might be hiding some serious value: a) Location, Location, Location: Prime real estate holdings in major cities. 🏙️ b) Brand Recognition: Household names with potential for a fresh take. ✨ c) Customer Base: They still have loyal shoppers, despite the overall struggles. >>What's Going On? Macy's: Real estate investors are doing their homework, considering a buyout offer. They believe the company is undervalued. 🤔 Nordstrom: The founding family is exploring going private. This could mean major changes behind the scenes. 🤫 >>The Big Question: Can They Be Saved? It's a gamble. These stores desperately need reinvention to win back customers. But, could an outsider with a bold vision succeed where others have failed? Or, is the best move to sell off assets and gracefully exit? 🤷 >>The Dillard's Inc.'s Case One department store chain stands apart: Dillard's. They focus less on innovation, more on steady returns for investors. It's not flashy, but their stock performance is surprisingly strong. 💸 This is an industry in flux. We could see iconic stores fade away, or witness a dramatic transformation. The future of department stores is definitely up for grabs! What would it take for YOU to shop at a department store again? #retail #business #investing #innovation #fashion #india #china #mexico

"Tony Spring (CEO) has been focusing on a group of 50 stores where he is testing ideas, such as adding more sales associates, improving the merchandise assortment and providing experiences like fashion shows. Sales gains at these stores far outpaced the broader chain." Agreeably early yet, but encouraging news nonetheless. #retailleadership #retail Macy's #retailtechnology Conversations On Retail Omni Talk Retail Retail Dive https://lnkd.in/guru6HD5

It's time to embrace A.I. beauty tech! By leveraging Eve V skin analyser's advanced product recommendation algorithm, we can guide consumers to the perfect skincare products and treatment plans. Let's not just spend less, but let's spend right. #BeautyTech #AIBeauty #EveV #SkinAnalyser #SkincareTech #SmartSpending

Levi Strauss & Co., a name synonymous with denim, is making significant strides in its business strategy. In a recent interview with Yahoo Finance, CFO Harmit Singh discussed the company's pivot towards a 'Direct-to-Consumer (DTC) first' approach. Here's what this means for the iconic brand: ✦ DTC currently accounts for about 43% of Levi's business, with plans to increase it to 55%. This shift signifies a major strategic realignment, focusing more on direct sales to consumers. ✦ While emphasizing DTC, Levi's maintains that this doesn't mean moving away from wholesale. The brand values its wholesale customers for global distribution, acknowledging that its stores can't be present everywhere. ✦ As part of this pivot, Levi Strauss announced plans to cut up to 15% of its corporate workforce, aiming to build a leaner, more agile structure suited for DTC growth. ✦ The shift to DTC is also about enhancing the end-consumer experience, ensuring they receive the same level of service and product assortment across all channels. Levi's move clearly indicates the growing importance of DTC channels in the retail sector. It reflects a broader industry trend where brands are seeking closer connections with their customers and more control over their retail experience. 🔗 Watch the full interview with Harmit Singh https://lnkd.in/e2gXVV4C #DTC #DirectToConsumer #ecommerce #retail #wholesale

https://lnkd.in/g9deWs9g Well the inflection point for Myer Department stores looks like its arriving. Fascinating proposal being tabled. Myer would purchase Just Jeans, Jay Jays and a number of other well-known brands owned by Premier Investments under a proposal from the department store that would mark the biggest shake-up of billionaire businessman Solomon Lew’s retail empire in nearly two decades. The proposal is part of a broader strategic review being conducted by Myer’s new executive chairwoman, Olivia Wirth. Under the plan, the department store would acquire Premier’s Apparel Brands division – which also owns the Portmans, Jacqui E, and Dotti brands – in exchange for new shares. Premier would distribute its shares in Myer to Premier shareholders, with Mr Lew becoming the company’s largest investor. Premier, which is controlled by Mr Lew, owns around 31 per cent of Myer. He would own just under 30 per cent of Myer should the transaction proceed. Equally interesting that the Golden eggs being Smiggle and Peter Alexander arent in this proposal. Building your own Retail strategy ,? Talk to the team at Retail Doctor Group, Retail Doctor Group The Retail Doctor Academy Brian Walker Anastasia Lloyd-wallis