Ulta Beauty Inc. to start selling its products on Target locations
Ulta will initially launch its products in nearly 100 locations, with a plan to add many more with time.
Staff or Guest writer for The Dog of Wall Street.
2020-11-10 15:13

Ulta Beauty Inc. (NASDAQ: ULTA) shares rose more than 8 percent in the mid-day trading Tuesday following the news that the company has inked a long-term agreement with Target Corp (NYSE: TGT).

The Bolingbrook, Illinois-based cosmetics store chain will open its own stores at Target locations, according to the terms of deal. Ulta will initially launch its products in nearly 100 locations, with a plan to add more with time. The stores will be opened next to the existing beauty section at Target.

Ulta Beauty Inc. to start selling its products on Target locations

The two companies did not disclose the financial details of the deal. Ulta will also list its products on Target’s e-commerce website. Some industry experts believe the latest partnership will open another growth channel for Ulta, which is currently struggling to boost sales amid limited opportunities due to the pandemic.

Sales of cosmetic products were rising before the Covid-19 outbreak, which resulted in lower demand, as people see little reason to wear makeup behind the masks. However, daily skin care products such as lotions and face serums are still needed by shoppers. Target stayed opened even during the pandemic as it is as a provider of essential day-to-day products, which gives it a competitive edge over rivals. Ulta Beauty can also capitalize on the opportunity by selling its products through Target locations if the lockdown is once again imposed in future.

Target reported in August that sales of beauty items rose over 20 percent in Q2, representing a surge of more than two-folds from the prior quarter, as customers resume shopping of non-essential products after the restrictions related to Covid-19 were softened.

Ulta Beauty (ULTA) shares have been on a roller coaster ride since the start of pandemic. The stock has jumped nearly 5 percent on year-to-date basis, including today’s jump.

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

Published On
2020-11-10 15:13

About the Author
Staff or Guest writer for The Dog of Wall Street.

You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Nvidia: The Colossus Shaping the Future of Technology
Nvidia's meteoric rise from a gaming-focused company to a data-center colossus underscores its visionary prowess, though geopolitical dynamics with China loom as potential challenges.
By Alfonso | 3 weeks ago

2 Tech Stocks That Have Dipped Too Far
Here are two stocks that have dipped too far and are ripe for a rebound.
By Mike Sakuraba | 1 month ago

2 Defensive Stocks to Buy During the Market Downturn
Here are a couple of defensive stocks to load up on ahead of what could be a bumpy close to August. 
By Mike Sakuraba | 1 month ago

2 Stocks Stuck After Reporting Earnings
The Trade Desk and Tesla reported strong earnings with The Trade Desk set for robust revenue growth in 2024 and Tesla anticipated to bounce back soon, highlighting positive future prospects despite recent stock declines.
By Mike Sakuraba | 1 month ago

Why Coinbase Stock Could Double in 2024
If Coinbase can execute all of these bullish events, the stock could easily double from here in 2024.
By Mike Sakuraba | 1 month ago

AI's Game Changer: NVIDIA's GH200 is Here!
Unleashing The Future: A Look at NVIDIA's Groundbreaking Advancements.
By Alfonso | 1 month ago

Palantir and Disney: 2 Earnings Calls You Can't Miss
So which earnings am I watching next week?
By Mike Sakuraba | 1 month ago

Apple Earnings Fallout: The Fall of the King
Apple saw its third consecutive quarter of declining sales.
By Mike Sakuraba | 1 month ago