Ulta Beauty Trading Volume Drops 35.58% Ranking 318th as Expansion Plans Halted

On April 10, 2025, Ulta Beauty (ULTA) experienced a significant decline, with its trading volume dropping by 35.58% to 3.77 billion, ranking 318th in the day's market activity. The stock price fell by 2.27%.

Ulta Beauty's new CEO, Kecia Steelman, has decided to halt the expansion of its shop-in-shop locations within Target stores. This pause affects 610 planned locations and comes as the company reassesses its strategy following recent leadership changes and market share challenges. The decision to pause the expansion is part of a broader effort to focus on improving existing locations and addressing internal issues before proceeding with further growth.

Target, which has been a strategic partner of Ulta Beauty for the past four years, has also announced that it will be pausing its expansion plans for in-store Ulta Beauty outposts. This move is seen as a response to the current market conditions and the need for both companies to reassess their partnership and future strategies.

While the exact reasons behind Ulta Beauty's decision to pause the expansion are not fully disclosed, industry analysts suggest that the company is prioritizing the optimization of its current operations. This includes enhancing customer experience, improving inventory management, and ensuring that the existing Target shop-in-shop locations are performing at their best before expanding further.