Berkshire Hathaway Takes New Stake in Ulta Beauty, Heico Exits

Ulta Beauty Shares Soar on News

Ulta Beauty shares experienced a surge of nearly 14% in extended trading on Wednesday following a regulatory filing. Warren Buffett's Berkshire Hathaway Inc. disclosed a new stake in the beauty retailer, while Heico Corp. exited its position.

Key Points

• Berkshire Hathaway purchased 694,000 shares of Ulta Beauty.
• Heico Corp. sold its entire stake of 923,284 shares.
• Ulta Beauty's stock has faced challenges this year, declining by 32%.

Ulta Beauty's Recent Performance

Ulta Beauty's stock has faced a decline of 32% over the past year. Despite this, the company has reported strong financial results, including a 17% increase in comparable store sales in its most recent quarter.

Berkshire Hathaway's Stake

Berkshire Hathaway's investment in Ulta Beauty adds to a portfolio that includes stakes in other prominent retailers such as Amazon and Walmart. The move signals Warren Buffett's confidence in the long-term prospects of the beauty industry.

Heico's Exit

Heico Corp.'s decision to exit its stake in Ulta Beauty follows a pattern of divestments from the company. Heico has also sold its stakes in other companies such as Core-Mark and Berkshire Hathaway Energy.

Conclusion

The entrance of Berkshire Hathaway and the exit of Heico Corp. have significant implications for Ulta Beauty. Berkshire Hathaway's investment is a vote of confidence in the company's future, while Heico's departure suggests a shift in its investment strategy. It remains to be seen how these developments will impact Ulta Beauty's stock price in the long term.