Ulta Beauty, Inc. ( ULTA ) shares are falling on Wednesday. 

The company’s executives cautioned about a deceleration in demand across categories in the first quarter, Reuters reported.

Ulta expects its overall category to grow moderately in the mid-single-digit range, marking a shift from previous years of robust expansion, the report read.

“What we’ve seen so far is a slowdown in the total category across price points and segments. That’s a bit earlier and a bit bigger than we thought,” CEO David Kimbell told J.P. Morgan analysts during a fireside chat, Reuters added.

However, while reporting fourth-quarter results last month, the company said it expects fiscal year 2024 revenue to be between $11.7 billion and $11.8 billion. 

The company projected fiscal year 2024 earnings in the range of $26.20 to $27 per share.

In a press release dated March 14, Kimbell stated, “We enter 2024 well-positioned to drive strong top and bottom-line growth, build on our foundational capabilities, and unlock further advantages of our differentiated model.”

On Wednesday, the company reaffirmed its annual comparable sales growth target of 4% to 5%, Reuters added.

The company’s shares were on track for their most significant decline since May 26, 2023.

According to Benzinga Pro, ULTA stock has lost over 19% in the past year. Investors can gain exposure to the stock via Neuberger Berman ETF Trust Neuberger Berman Next Generation Connected Consumer ETF and VictoryShares US Multi-Factor Minimum Volatility ETF .

The news also dragged down peers E.L.F. Beauty, Inc. , Coty Inc. ( COTY ) , and Estee Lauder Companies, Inc. ( EL ) .

Price Action: ULTA shares are trading lower by 14.2% to $446.12 on Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.