Shares of Ulta Beauty and Sally Beauty sank Monday after Amazon launched its own beauty store for licensed professionals.
The e-commerce giant announced the Amazon Professional Beauty Store to offer professional stylists, barbers, and aestheticians beauty supplies typically found in salons and spas. Sally Beauty's stock plunged nearly 17% and Ulta fell 2.6% following the news on Monday.
"We are pleased to offer those in the professional beauty industry even more selection through the convenient shopping experience our customers love on Amazon Business," Steve Kann, director of customer driven experience at Amazon Business, said in a blog post. "Stylists can find more of what they need at great prices with convenient delivery options, freeing up their time to focus on what's important: their customers."
Amazon's professional-use selection requires a license to purchase products, such as state-issued cosmetology, barber, or aesthetician licenses.
The competition adds more pressure to Sally Beauty, whose stock has already tumbled 20% amid disappointing earnings. Ulta, on the other hand, has had a stellar year with its shares rising nearly 40% in 2019. The stock recently got a boost from the introduction of cosmetics lines from Kylie Jenner and YouTuber James Charles.