Ulta Beauty blames slow sales due to lack of & # 39; innovation & # 39;

Shares in the cosmetics chain Ulta Beauty fell close to almost 30% Friday after sales declined.

Compared sales in the second quarter grew 6.2%, below expectations of 6.7% growth. Ulta, which operates around 1,200 stores, also reduced its growth forecast for the year to 4% to 6%, down from 6% to 7%.

In a Friday interview, CEO Mary Dillon blamed cosmetics for the lack of "novelty and innovation" in products, causing "headwinds in the US market."

Shares closed $ 99.72, to $ 237.73, marking the worst performance in a day since it was listed on the Nasdaq stock market in 2007.

"Ulta has gained market shares, but they have masked what has happened in the beauty industry, "Loop Capital analyst Anthony Chukumba told The Post. "The weakness in the sector caught up with them."

Among the brands Ulta expects to grow is the 3-year-old Kylie Cosmetics line, founded by reality TV star Kylie Jenner.

As The Post reported exclusively July 28, sales of Jenner's line have gone down, according to a report by Rakuten Intelligence.