US Eagle to initiate beauty business before the holiday season
United States beauty industry, Eagle said that it plans to organize a beauty business before the commencement of the holiday season. The CEO of the firm, Jay Schottemstein said that “We have a special package for it, it's going to be a special kickoff and therefore, we are planning to surprise our customers so we are not going to reveal it now and trust me it will be very exciting.” We have done some customer research and it has been loaded with very positive output. We think this is a great opportunity for us to get into the beauty business.”
The firm did not disclose whether or not the business will be internally designed or if it is determining to gather another brand. In the year 2018, American prestige beauty market reached $18.8 billion, and a six percent boost over 2017.
And now, American Eagle provides a few products like eye shadow palettes, concealers, and makeup bags from other brands which are especially sold online. Sales are anticipated to start in the month of October.
Furthermore, Ulta Beauty’s earnings report already warned that in today’s era industry-wide cosmetics have been struggling and it will continue in coming years. Mary Dillon, the CEO of Ulta Beauty told that recent innovations have not allowed consumers to purchase products for new beauty products, that ultimately resulting in a soft cycle for the category of cosmetics in the United States.
The stock of American Eagle is dropped more than 14 percent, at one point hitting a 52 week low after recording the same store sales growth for the 2nd quarter that unfollowed analyst expectations. The shares of the American eagle are lower nearly 26 percent since the month of January, making the firm a market value of $2.4 billion. Thus, they did not immediately respond to the customer’s requests.