Jim Cramer Commented on These 8 Stocks Recently

4. Ulta Beauty, Inc. (NASDAQ:ULTA)

Number of Hedge Fund Holders: 47

Inquiring about their daughter’s portfolio, a caller asked Cramer’s thoughts on Ulta Beauty, Inc. (NASDAQ:ULTA), and he replied:

“I’ve been thinking a lot about it. I’ve been thinking a lot about it. One of the reasons I’ve been thinking about is, you know that Sephora is in Kohl’s, and Kohl’s is doing so poorly that I think people are going to gravitate away from Sephora and come back to Ulta. Ulta’s got new management…. I think they got horse sense.”

Ulta Beauty (NASDAQ:ULTA) is a beauty retailer that sells both branded and private-label products. It also provides beauty services through its stores, website, and mobile apps. On March 14, during an episode of Squawk on the Street, Cramer commented:

“You’ll see the stock of Ulta going up today and it shouldn’t. But that’s because people feel some relief. They must not have read the conference call. Because the conference call is incredible in terms of how the new CEO, actually literally says, we’re doing so many things wrong. I was, Dave Kimbell was the previous CEO, I used to interview him all the time. You know, Kecia Steelman, come at the company itself. She says look, the company’s never been this intense. For the first time, we lost market share in the beauty category. She talks about they just operated, they have to change, they’re missing opportunities and I came back and just said, holy cow, she’s on the war path against the management of the previous team. Now I don’t think she necessarily wanted that to come out that way. But it made me think that she felt that Dave Kimbell and his team, because they’ve replaced a lot of them, have missed the mark. Quite shocking cause Ulta Beauty is one of the few beacons in what has been a horrendous, horrendous cohort…

No they weren’t [the comps being disappointing] and that’s why the stock is up. And plus I mean, it’s just been a relentless, you know, Elf has been terrible. Estee Lauder is probably one of the worst plunges I have ever seen in my career. This is a very challenged group and you got to be careful about cosmetics. Remember, Kohl’s and Sephora, the only thing that’s keeping Kohl’s around is Sephora. That was a great deal that they made. But I want to stay away from cosmetics nine ways to Sunday. Anything cosmetics is just no place to be.”