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Ulta Beauty, Inc.
Sector: Beauty Country of operation: US Key product categories: Bath and body products, cosmetics, fragrance, haircare products, salon and styling tools, and skin care Annual Metrics [caption id="attachment_151926" align="aligncenter" width="700"]
Fiscal year ends on January 30 of the following year[/caption]
Summary
Ulta Beauty is a US-based beauty retailer, headquartered in Bolingbrook, Illinois, offering bath and body, cosmetics, fragrance, haircare and skincare products, as well as salon and styling tools and services. It offers more than 25,000 products across more than 600 brands, including its private label selections. The company was founded in 1990 and is headquartered in Bolingbrook, Illinois. As of October 30, 2021, Ulta Beauty operates 1,302 stores in the US and also distributes its products through its website, ulta.com. Its retail stores are predominantly located in high-traffic locations, with a typical stores size of around 10,000 square feet. As of January 30, 2021, Ulta employs approximately 16,000 associates on a full-time basis and approximately 21,000 associates on a part-time basis.
As of January 30, 2021, the company’s loyalty program has approximately 30.7 million active members. Transactions by these members represent more than 94% of the company’s annual total net sales.
Company Analysis
Coresight Research insight: Ulta continues to innovate and position itself for growth among its consumers both physically and digitally. The retailer has been able to open 88 “Ulta Beauty at Target” shop in stores as of October 2021 and aims to open 250 more by the end of 2022, while many of its beauty products are also available online at Target.com. Additionally, both companies have further plans to expand the partnership to a total of 800 Target locations over the next few years. This will increase Ulta Beauty’s physical footprint and may help to introduce the brand’s products to a new consumer demographic.
Ulta Beauty has been working to grow its online platform and digital experiences. As a result, the company has witnessed significant growth in its e-commerce sales, which doubled in 2020. The company’s e-commerce platform generates sales through engaging directly with consumers, creating immersive digital experiences, driving return traffic to Ulta Beauty’s stores and website, and offering a complete omnichannel experience.
Ulta Beauty achieved a strong recovery in 2021, beating its 2019 revenue record. Now, the company expects more growth as the beauty industry is set to grow overall, in the 2.0% to 4.0% range annually, moving forward.
| Tailwinds | Headwinds |
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- Drive breakthrough and disruptive growth through an expanded definition of “All Things Beauty,” offering an assortment of products and services that are both compelling and different from competitors
- Evolve its omnichannel experience through connected physical and digital ecosystems, driving engagement across physical and digital touchpoints
- Expand and deepen its presence across the beauty market as the “Heart Of The Beauty Community,” creating a deeper connection with its guests
- Drive operational excellence and optimization to enhance profitability
- Protect and cultivate world-class culture and talent
- Expand its environmental and social impact
Source: Company reports[/caption]
Company Developments
| Date | Development |
| June 7, 2022 | Ulta Beauty is now accepting applications for MUSE Accelerator, its inaugural program dedicated to supporting early-stage black-, indigenous-, and people-of-color (BIPOC)-owned beauty brands to launch and thrive in retail. In September, eight BIPOC beauty brand applicants will receive $50,000 in financial support to propel brand development, as well as resources designed to prepare each for retail readiness and long-term success. |
| May 26, 2022 | Ulta Beauty announces record first quarter fiscal 2022 results. The company reports net sales of $2.3 billion—versus $1.9 billion in the year-ago quarter—and a comparable sales increase of 18.0%. Meanwhile, Ulta reports a net income of $331.4 million or $6.30 per diluted share. |
| February 16, 2022 | Ulta Beauty announces additions to its Board of Directors: Kelly E. Garcia and Gisel Ruiz appointed as Independent Directors. |
| February 3, 2022 | Ulta Beauty announces 2022 Diversity, Equity and Inclusion Commitments. |
| December 2, 2021 | Ulta Beauty reports record third quarter (fiscal 2021) results, including a 25.8% comparable sales gain. |
| October 19, 2021 | Ulta Beauty announces long-term financial targets and strategic priorities. |
| September 22, 2021 | Ulta Beauty announces MUSE 100, honoring black voices in beauty. |
| June 23, 2021 | Ulta participates in the Jefferies Virtual Consumer Conference on June 23, 2021. |
| March 2021 | Ulta Beauty announces Dave Kimbell, President, to succeed Mary Dillon as CEO and be nominated for election to the company’s board of directors at the 2021 annual stockholders meeting on June 2, 2021. |
| March 2021 | Ulta Beauty reports its fiscal year 2020 results: net sales declined 16.8% year over year due to the impact of Covid-19, and comparable sales decreased 17.9%, compared to an increase of 5.0% in fiscal 2019. |
| February 2021 | Ulta announces Tracee Ellis Ross, CEO and founder of PATTERN Beauty as the company’s Diversity and Inclusion Advisor. |
| February 2021 | Ulta announces diversity and inclusion commitments on amplifying underrepresented voices, black-owned brands, guest experiences and associate experiences. The 2021 commitments represent a total planned investment of more than $25 million. |
| January 2021 | Direct-to-consumer haircare and supplement brand Hairtamin launches at Ulta Beauty. |
| January 2021 | Ulta Beauty promotes Maria Salcedo, VP of Merchandising and Strategy to SVP of Merchandising and Makeup. |
| December 2020 | Ulta Beauty reports third quarter fiscal 2020 results, with a sales decrease of 7.8% year over year and a comparable sales drop of 8.9% in the quarter due to the impact of Covid-19. |
| November 2020 | Target and Ulta Beauty announce a strategic partnership. Ulta Beauty at Target will debut at more than 100 Target stores nationwide and online at Target.com beginning in 2021. The “shop-in-shop” concept will offer established and emerging prestige brands online and in select Target locations nationwide beginning next year. |
| October 2020 | Ulta launches its Conscious Beauty range in all stores and on ulta.com. With strategic partners in place, the program certifies brands under five, key pillars—Clean Ingredients, Cruelty Free, Vegan, Sustainable Packaging and Positive Impact |
| September 2020 | Ulta cancels plans to enter Canada in 2020 due to the current economic environment, and decides to prioritize growth of its US operation for now. |
| August 2020 | Ulta announces that it will close all of its stores on Thanksgiving Day, November 26, 2020. |
| July 2020 | Ulta Beauty announces that it has completed its phased reopening process. Consumers are able to shop via Curbside Pickup, Buy Online Pickup in Store, on ulta.com, via the Ulta Beauty app and in Ulta Beauty stores. |
| July 2020 | Ulta Beauty joins the Stop Hate for Profit effort and pauses advertising on the Facebook network’s platforms throughout July. |
| June 2020 | Ulta Beauty announces its partnership with clean beauty pioneer, Credo Beauty, to offer Ulta Beauty customers an exclusive, clean beauty collection. |
| May 2020 | Ulta announces the reopening of 180 stores as part of a phased approach following temporary Covid-related store closures. Curbside pickup is available at 700 stores. |
| April 2020 | Ulta temporarily closes all of its stores and furloughs many of its store and salon associates effective April 19, 2020. |
| March 2020 | Ulta draws down $800 million under its revolving credit facility and reports that it is re-evaluating the pace and timing of its stock repurchase program. |
| March 2020 | Ulta reports its fiscal year 2019 results. The company’s 2019 net sales increase by 10.1% to $7.4 million, compared to $6.7 million in fiscal 2018. Its comparable sales increase by 5.0%, compared to an increase of 8.1% in fiscal 2019. |
| December 2019 | Ulta announces leadership changes: Kecia Steelman takes on responsibility for Ulta Beauty’s international growth, as Chief Store Operations Officer & President, International. Monica Arnaudo is promoted to Chief Merchandising Officer, Shelley Haus is promoted to Chief Marketing Officer and Prama Bhatt is promoted to Chief Digital Officer. |
| November 2019 | Ulta appoints Patricia Little, former Senior Vice President and Chief Financial Officer of The Hershey Company, to its Board of Directors. |
| October 2019 | Ulta partners with VR content platform VirtualAPT on recreating digital in-store experiences, including an interactive 360-degree video tour. |
| October 2019 | Ulta launches KKW Beauty, the makeup brand of American celebrity Kim Kardashian, at all store locations. |
| September 2019 | Ulta extends its exclusive partnership with Kylie Cosmetics, the makeup brand of American celebrity Kylie Jenner’s, with the launch of the full line of Kylie Skin. |
| August 2019 | Ulta launches SPARKED at Ulta Beauty program, an initiative designed to give shoppers access to digitally native and socially fueled beauty brands, available in brick-and-mortar locations for the first time. |
| August 2019 | Ulta partners with Samsung and beauty technology company Revieve to provide beauty shoppers with access to a personalized skin diagnostic and product recommendations. |
| August 2019 | Ulta converts its Romeoville DC fulfillment center into an e-commerce fast fulfillment center. |
| August 2019 | Ulta lowers its fiscal 2019 revenues and EPS guidance to reflect industry-wide headwinds in the cosmetics category. |
| May 2019 | Ulta announces plan to operate as a global brand with Canada as its first international market. |
| April 2019 | Ulta announces the appointment of David C. Kimbell as the President and Chief Merchandising and Marketing Officer. |
| March 2019 | Ulta launches Cannuka, a CBD skincare brand, both in-store and at ulta.com. Cannuka is the first-ever CBD-based brand carried by Ulta. |
| November 2018 | Ulta Beauty announces on its 2018 Analyst and Investor Day that the Ultamate Rewards loyalty program drives 95% of the company’s revenue with 30 million members. |
| November 2018 | Ulta Beauty announces plans to open up to 80 stores in 2019, with 75 stores planned for 2020 and 70 stores for 2021. |
| November 2018 | Ulta acquires GlamST, a Uruguayan AR platform for beauty companies, for an undisclosed sum. |
| November 2018 | Ulta exclusively launches 28 lip products by Kylie Cosmetics at its stores. |
| September 2018 | Ulta acquires QM Scientific, a shopping intelligence platform. |
| August 2018 | Ulta announces the resignation of Charles J. Philippin as a non-executive Chairperson of the Board, effective September 30, 2018, due to medical reasons. Robert F. DiRomualdo, a Director of the Company, will be appointed in his place. |
| July 2018 | Ulta opens a new omnichannel distribution center in Fresno, California. |
| July 2018 | Ulta opens its first store in Hawaii and announces its plan to open two more locations in fall 2018. |
| January 2018 | Ulta adds a third tier, Diamond, to its Ultamate Rewards program. |
Source: Company reports
Management Team- David C. Kimbell—CEO & Director
- Scott M. Settersten—CFO, Treasurer & Assistant Secretary
- Kecia Steelman—COO
- Shelley Haus—Chief Marketing Officer
- Monica Arnaudo—Chief Merchandising Officer
- Prama Bhatt—Chief Digital Officer
- Kiley F. Rawlins—Vice President of Investor Relations
Source: Company reports