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Ulta Beauty targets upgraded focus on customers

Cosmetics retailer's shares have been on a roll, as management pursues locations within Target stores.

The cosmetics industry has seen its challenges during the COVID, yet Ulta Beauty  (ULTA) - Get Ulta Beauty Inc Report stock has been on a steady upward climb since the pandemic hit home in March 2020.

Real Money’s technical analyst, Bruce Kamich recently looked at the charts underlying the stock, noting that “ULTA is still comfortably above the rising 50-day moving average line as well as the rising 200-day line.”

Kamich noted that he had last reviewed Ulta on May 19. At the time the stock was trading around $319 a share. At the time,  Kamich wrote, “we recommended ‘ULTA is close to a breakout from this triangle pattern we have described.’”  In recent days Ulta has been trading around $380 and Kamich says the charts remain bullish.

Ulta just reported quarterly earnings that included a 13% rise in same-store sales.

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Kamich’s review follows a recent interview with Ulta’s CEO, David Kimbell, on Jim Cramer’s Mad Money TV show.

In the interview, Kimbell discussed Ulta’s move to open mini-stores inside of Target outlets.

Kimbell told Cramer he's very excited about the possibilities for Ulta with Target, saying their goal was not simply to drop an Ulta store inside Target, but rather to build a totally new experience that will focus on guests in new ways. Ulta Beauty stores at Target began opening in August.

A lesson from the pandemic is the importance of one’s connection to self-care and wellness, Kimbell said, and Ulta allows guests to experience beauty on their own terms.

Turning to the holidays, Kimbell told Cramer Ulta will be ready for their 34 million loyalty club members, despite continued supply chain disruptions.