Ulta Beauty: The Official End Of The 'Lipstick Effect' Tailwinds

Talaj/iStock via Getty Images Investment Thesis The Lipstick Effect is a manifestation of consumer crosscurrents occurring when consumers reallocate their wallet spend from big-ticket luxury goods and other large items to smaller discretionary items such as lipstick during slowdowns. This was a tailwind for Ulta Beauty (NASDAQ:ULTA) during the post-pandemic slowdown seen in 2022. But it doesn’t seem to be the case anymore. Yesterday, during the J.P. Morgan 10th Annual Retail Round Up Conference, David K ...