THE GHOST TRAIN
THE FINANCE GHOST: Beauty and the beastly market
Dis-Chem and Clicks are steaming along happily at the moment, but that could change if the online pharmaceuticals market takes off locally like it has overseas
The market isn’t famous for having empathy. Instead, it’s a brutal place that can send you on a spectacular emotional rollercoaster ride in the space of a single day. With Estée Lauder dropping 20% in the past week, mascara is running down the faces of investors and the share price chart is a deeper red than any shade of lipstick over most time periods. The stock is trading at the same levels we saw in 2013!
The messenger of misery visited practically the entire beauty industry in the past week, claiming scalps beyond Estée Lauder’s. Ulta Beauty is the stock that people most commonly refer to when looking at this sector and that share price is down nearly 13% year to date, taking the 12-month drop to 28%. If we apply a longer-term lens of five years (which gives us a base for comparison just before the March 2020 Covid crash), the compound annual growth rate is just 4.8%. That’s poor...
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