Ulta Beauty Inc (NASDAQ:ULTA) stock was down on Wednesday following rumors of a deal between Amazon.com, Inc. (NASDAQ:AMZN) and Violet Grey.

According to the new rumor, Amazon is looking to team up with Violet Grey to help it push into the beauty market. Having AMZN focus more on the beauty market, and doing it without Ulta Beauty Inc’s help, could be bad news for ULTA stock.

The decline in ULTA stock today is actually part of a larger movement concerning Amazon. Rumors that the company was looking for an alliance to enter the beauty market actually started earlier this month. Ulta Beauty Inc has seen its stock drop roughly 14% since the rumors started.

The rumors that Amazon was planning to enter the beauty market came after the company made closer ties with Nike Inc (NYSE:NKE) and announced plans to purchase Whole Foods Market, Inc. (NASDAQ:WFM). It was around this time that rumors were starting to claim that AMZN was heading after the beauty market next.

Despite the pressure from Amazon, Ulta Beauty Inc is still pushing to expand its offerings at its stores. This includes adding products from MAC Cosmetics to select locations last month. It will expand to include these products at roughly 100 physical locations throughout the year. The company also offers the beauty products via its online store.

Amazon is a giant in the retail sector and its been hurting other retailers. Until just recently, Ulta Beauty Inc was one of the companies that seemed to be unaffected by the online retail giant’s pressure.

ULTA stock was down 4% and AMZN stock was up 1% as of Wednesday morning.

As of this writing, William White did not hold a position in any of the aforementioned securities.