Ulta Beauty (ULTA) shares are taking a hit following the company's failure to meet quarterly estimates on Friday. The beauty giant has also lowered its full-year sales outlook, reflecting the ongoing struggles faced by consumers in the current economic environment.

Dana Telsey, Telsey Advisory Group CEO and chief research officer, joins Morning Brief to offer insights on Ulta's future prospects.

Telsey highlights Ulta's market position, noting that the company "caters to mass and also prestige at the same time." However, she identifies two key factors contributing to the negative results: Ulta's stores did not reopen and recover at the same pace as some of its competitors following the COVID-19 shutdowns and internal challenges related to ERP systems issues.

Despite the disappointing earnings report, Telsey maintains an optimistic outlook on Ulta's future. "I think you obviously still have a significant market share at Ulta. It's retooling in order to be able to navigate back to more significant growth," she states.

Telsey views the current stock price decline as a potential opportunity for investors.

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This post was written by Angel Smith