Kylie Jenner saved Ulta Beauty from a brutal earnings report — and catapulted shares to their best level in over a year
- Kylie Jenner's cosmetics line will soon be available in Ulta Beauty stores, the 21-year-old said Friday.
- Shares of Ulta hit their highest level in more than a year following the announcement, which helped the retailer shrug off an otherwise grim quarterly earnings.
- Follow Ulta Beauty's stock price in real-time here.
Shares of Ulta Beauty surged more than 5% — hitting $268.69, their highest price in more than a year — thanks to a partnership with Kylie Jenner, who said the cosmetics chain will carry her eponymous brand in time for the holiday shopping season.
Ultra initially sank in after-hours trading Thursday following the Chicago-based company’s second-quarter earnings that missed Wall Street’s expectations, before the reality-star and entrepreneur’s announcement helped the stock rebound.
"I'm so excited to let you guys know that @KylieCosmetics will be coming to all @ultabeauty stores around the country this holiday!," the 21-year-old tweeted to her 25 million followers late Thursday, adding that there was "more to come…"
The partnership could be the catalyst Wall Street was waiting for.
"Looking forward, we think newness (Too Faced, Kylie Jenner, & others) expected in 2H should help reinvigorate traffic," Michael Goldsmith, an analyst at UBS, told clients Friday.
"Further, ULTA's flywheel continues to turn. As it gains scale, brands increasingly rely on it for growth. This is evident as it will start carrying Kiehl's, a €1 billion brand."
Jenner's wildly popular cosmetics line has propelled the reality star and half-sister of Kim Kardashian to an estimated net worth of $900 million. She graced the cover of Forbes in July, when the magazine heralded her as one of the US' richest "self-made" women, a claim that quickly garnered criticism for her wealthy upbringing.
And it's not the first time Jenner has moved a stock in dramatic fashion. In February, shares of Snap slid 7% — wiping out $136 million of book value — when she tweeted that she doesn't open Snapchat anymore.
Ulta is up 12% this year.