Have resell rumors hit sales growth at Ulta?

Have resell rumors hit sales growth at Ulta?

Ulta Beauty CEO Mary Dillon has been forced to deny claims that the company sells used or expired make-up after the rumors refuse to fade, according to a report published by Retail Leader.

“We have zero tolerance for any actions that would compromise the integrity of the products we sell. We are confident that our associates are following our policies regarding the handling of returned products. To fortify this policy, we are re-communicating and reinforcing with every associate across the country the proper procedures for processing returns,” she said during a fourth quarter earnings call. “We have seen no indications that the publicities surrounding the allegations has negatively impacted our brand, our store traffic or financial results in any discernable way but we will remain vigilant and ready to take any necessary action to protect our brand and ensure we maintain the trust of our loyal guests.”

Same store sales rose 8.8 percent in the final quarter of fiscal 2017 ended February 3, less than the double digit growth experienced by the US beauty retail behemoth in previous quarters, and the 16.6 percent growth witnessed in 4Q 2016.