MARKET UPDATE 06.12.22
Sunday Stock Update:
ULTA BEAUTY INC (NASDAQ: ULTA)
Share Price: $407.72
Market Cap: 21.13 B
Backstory: Ulta Beauty is an American chain of beauty stores headquartered in Illinois. Founded in 1990, Ulta sells cosmetic, fragrance, body, skin, and hair care products at a wide range of price points to maximize its customer base, in addition to offering its customers in-store salon treatments. Ulta Beauty generated a net income of $289.4 million in the 2021 fiscal year.
Current News: Prior to the Covid-19 lockdown, Ulta Beauty introduced its in-store salon service to multiple locations. While the concept was growing in popularity, sales were impacted by pandemic related stay-at-home orders. In Ulta’s 2022 second quarter report, comparable sales revenue jumped by 56%. With return to in person shopping experience’s post pandemic, Ulta’s profit margin is expected to continue to rise.
TJX COMPANIES INC (NASDAQ: TJX)
Share Price: $58.97
Market Cap: 68.09 B
Backstory: TJX Companies, Inc is a multinational off-price department store corporation headquartered in Framingham, Massachusetts. TJX Companies consists of well known subsidiaries TJ Maxx, HomeGoods, Marshalls, and HomeSense. TJX produced an annual revenue of $32.127 billion in the 2021 fiscal year, a 22.96% decline from 2020.
Current News: The home furnishings industry is expected to encounter much cheaper goods following an announcement from Target. The retailer is aiming to reduce inventory by offering discounts in the future, following an unwanted increase in inventory found within second quarter reports. Rivals, namely TJX Companies, are expected to follow suit and reduce pricings to stay competitive this summer.
AMERICAN EAGLE OUTFITTERS (NASDAQ: AEO)
Share Price: $11.92
Market Cap: 2.02 B
Backstory: American Eagle is an American lifestyle, clothing, and accessories retailer headquartered in Pittsburgh, Pennsylvania. The brand targets high school and college aged individuals and operates over 900 stores worldwide. American Eagle announced $5.0 billion in revenue in its 2021 fiscal year financial reports.
Current News: For current investors, options traders are placing American Eagle as a Strong Sell. With a high implied volatility, AEO stock is expected to make a big move in either direction in the near future. With negative investor outlook on AEO and the high implied volatility, it is possible that there is a trade developing.