BUZZ-Ulta Beauty losing share in on-trend cosmetics brands to Sephora, Jefferies says

Reuters04-19

** Jefferies downgrades cosmetics retailer Ulta Beauty

to "hold" from "buy"

** Brokerage notes consumers are shifting purchases to stores of LVMH-owned Sephora for on-trend cosmetics brands

** Ulta's "prestige makeup" category weighed down by brands such as Clinique, Estee Lauder, even MAC, which have lost share for years, and many are now selling direct at off-pricers such as TJX Cos at one-third price - brokerage

** Ulta has lost share in key, high-margin categories of "prestige cosmetics" and hair - Jefferies

** Sephora has been "relentlessly adding zeitgeist emerging brands some of which are exclusives" driving its sales - brokerage

** Jefferies also cuts PT on Ulta's shares to $438 from $585

** Company's shares down 1.5% to $418.96 premarket

** 17 of 30 brokerages rate the stock "buy" or higher, 12 "hold" and 1 "sell"; median PT $575 - LSEG

** So far this year, stock down ~13%

(Reporting by Savyata Mishra in Bengaluru)

((Savyata.Mishra@thomsonreuters.com))

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