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Shares of Ulta Beauty and Sally Beauty sank Monday after Amazon launched its own beauty shop for licensed professionals.
E-commerce giant announced Amazon Professional Beauty Store to offer professional stylists, hairdressers and aesthetic beauty materials commonly found in lounges and spas. Sally Beauty stock stuck 12% and Ulta fell 3% after the news.
"We are happy to offer even more choice to the professional beauty industry through the practical shopping experience our customers love at Amazon Business," said Steve Kann, director of customer-driven experience at Amazon Business, in a blog post. "Stylists can find more of what they need at great prices with handy delivery options, and free up time to focus on what's important: their customers."
Amazon's choice for professional use requires a license to purchase products, issued cosmetics, hairdressing or aesthetic licenses.
The competition puts more pressure on Sally Beauty, whose share has already tumbled 20% among disappointing earnings. Ulta, on the other hand, has had a brilliant year with its shares rising almost 40% in 201