Shares of Ulta Beauty are falling as Buffett cuts his stake in Investing.com
Shares of Ulta Beauty (NASDAQ: ) fell more than 5% in retail trading Friday after Warren Buffett’s Berkshire Hathaway (NYSE: ) revealed it had significantly reduced its stake in the cosmetics retailer.
The move, disclosed in a regulatory filing on Thursday, saw Berkshire reduce its holding in Ulta by more than 96%, selling most of the position it had acquired a quarter earlier.
Berkshire initially bought 690,106 shares of Ulta in the second quarter worth about $266.3 million during that period, as disclosed in the August filing.
However, by the end of the third quarter, its stake had been reduced to just 24,000 shares, indicating a rapid reversal in investment.
The sale follows a challenging year for Ulta, whose shares have fallen more than 21% year to date, reflecting a broader struggle in the cosmetics retail space.
While the exact reasons for Berkshire’s decision to sell most of its Ulta stake remain unclear, investors have reacted cautiously to the sharp downgrade from a high-profile investor like Buffett, which is often seen as a sign of fundamental concerns.
Early trading showed Ulta shares at $361.71, marking a 5.5% decline from Thursday’s close. The sale added pressure to the company, which has faced ongoing problems with consumer spending.
