Eck + Ulta + Cellmid + Evolis + Jenner + Kardashian

Squawk Prediction...

Eck + Ulta + Cellmid + Evolis + Jenner + Kardashian = Mega Deal

The magnetic Ulta
Why did Jenner reach out to Ulta? It's likely a reflection of Ulta's business model. Ignoring the distinction between "prestige" and "discount" makeup, Ulta has cultivated a specialty retail environment for "beauty enthusiasts" that includes both affordable discount brands and prestige brands, as well as new "indie" brands such as Kylie Cosmetics and e.l.f beauty(NYSE:ELF).

To give an idea of the breadth of Ulta's appeal, the company also announced a new partnership with skin care brand Kiehl's on the same conference call. Kiehl's is a high-end skincare brand made from natural ingredients that has been around since 1851. Kiehl's had previously only been available in its own proprietary Kiehl's-branded stores and higher-end outlets, but now follows in the footsteps of premium makeup brand MAC cosmetics, which joined Ulta in 2017 after previously being available only through its own branded outlets and high-end department stores.


Look no further than Kylie and Kiehl's to see Ulta's moat
It's a testament to Ulta's business model that it has been able to attract both Kylie Cosmetics, which is only two years old, and Kiehl's, which is 167 years old, all in the same quarter. The flexibility of Ulta's data-driven and diverse product line allows it to adapt to ever-changing trends in the beauty industry, so as long as people continue to want to look good, and mall and department store traffic continues to decline, Ulta should continue to reap the benefits.

While Ulta's stock has been in the doldrums for the past couple years, perhaps the Kardashian bump will finally break the stock out of its rut.