We're hosting a call tomorrow to highlight our latest thoughts on our Best Idea Short ULTA and why our conviction is going higher.
The market looks to be slowly waking up to the risk for ULTA – comps are slowing, but we don’t think people have the right context as to why that’s happening. This short has much farther to go, as we think it’s heading sub $250. We’re holding a flash call on Friday, August 5th at 10am to review the short thesis and present some new analysis. We’ll specifically highlight why we think 2H sales will slow materially and carry share risk for ULTA, why margins are heading much lower, and why the PE multiple should be in the low double digits.