Ulta Beauty

Ulta Salon, Cosmetics & Fragrance, Inc.
Public
Traded as NASDAQ: ULTA
NASDAQ-100 Component
S&P 500 Component
Founded 1990 (1990)
Headquarters Bolingbrook, Illinois
Number of locations
 715 (August 2014)[1]
Key people
 Mary Dillon, CEO
Number of employees
 19,000+[2]
Website www.ulta.com

Ulta Salon, Cosmetics & Fragrance, Inc. is a chain of beauty stores in the United States. Ulta Beauty carries cosmetics and skincare brands, men's and women's fragrances, and haircare products. Each store is also equipped with a salon. The company is headquartered in Bolingbrook, Illinois.[3]

History

Ulta Salon, Cosmetics and Fragrance was founded by Richard E. George, the former President of Osco Drug, Inc. Following his tenure, Terry J. Hanson, another Osco veteran, became the CEO. In September 1996, Hanson hired Charles "Rick" Weber, another Osco veteran, to be Chief Financial Officer. In December 1999, Lyn Kirby, formerly of Sears Circle of Beauty, became the President and Chief Executive Officer and Weber became Senior Executive Vice President, Chief Operating Officer and Chief Financial Officer. The two ran the business together until Weber left in September 2006 when he was selected by Tom Stemberg, founder of Staples, to become Chairman and Chief Executive officer of Rec Room Furniture and Games, Inc.[4] On October 25, 2007, the company became publicly traded on the NASDAQ. In 2008, the company opened a second distribution center in Phoenix, Arizona. On April 26, 2010, Ulta announced that Mr. Carl "Chuck" Rubin would be appointed as Chief Operating Officer, President, and as a member of the Board of Directors, effective May 10, 2010. According to public filings, Chuck Rubin earned over $11.1MM in 2010, making him one of the 20 highest paid CEOs in Chicago.[5]

Ulta Beauty, Ann Arbor, Michigan

As of March 2011, Ulta had $730.5 million in total assets.[6]

On June 24, 2013, it was announced that Mary Dillon would be appointed as Chief Executive Officer and a member of the Board of Directors, effective July 1, 2013. Mary Dillon previously held positions as the former chief of U.S. Cellular and senior executive at McDonalds and PepsiCo.[7]

Finances

Ulta Beauty sales were $713.8 million for the first quarter ending in May 2014.[8] At the end of the second quarter ending in August 2014, Ulta Beauty reported that total sales increased by 22.2 percent and comparable store sales Increased 9.6 percent.[9] Wall Street expected the company's total sales to reach $3.19 billion for the fiscal year ending in February 2015, which would be almost three times the amount of Ulta Beauty's sales levels in 2009.[10]

Locations

In 2013, Ulta opened 125 stores in the United States, bringing their total number of locations to 675 stores. They also announced plans to open 100 more locations by the end of 2014.[11] As of August 1, 2015, Ulta operates 817 stores in 48 states.[1] A majority of Ulta Beauty stores are located in the East Coast region, however on the West Coast, California has a large presence of company-owned stores as well.[12] Ulta said it aims to have 1,000 stores located in the United States by 2017.[13]

Brands

Ulta Beauty carries about 20,000 products and 460 brands in their traditional 10,000 square feet stores, offering both high-end and drugstore cosmetics, skincare, and fragrances.[14] Some of the brands that Ulta carries includes bareMinerals, Benefit Cosmetics, Clinique, Smashbox, Stila, Urban Decay and Tarte. Drugstore brands include Covergirl, L'Oréal, Mode Signature, Maybelline, NYX Cosmetics, and Revlon. Ulta also has their own store brand which includes makeup, bath and body, skincare, hair, nail polish, and fragrances. Ulta Beauty also offers "Only at Ulta" cosmetics for their loyal customers including Stila palettes, IT Brushes for ULTA, Tarte kits, and bareMinerals and Benefit Cosmetics sets.

Services

Ulta has a salon located in every store nationwide. The store format includes a 950 square feet salon area with eight to ten stations. The salon has a concierge desk, skin treatment room, and semi-private shampoo and hair color processing areas. It offers services including hair cuts and hair coloring from Redken-trained hair stylists, skin treatments and facials from Dermalogica trained skin therapists, and manicures from OPI trained professionals.[15]

Benefit Brow Bar

Ulta Beauty has Benefit Brow Bars located in most stores. Benefit Brow Bar services include brow arching, brow tinting, facial waxing, and eyelash application.[16] The Benefit Brow Bar has become an increasingly popular addition to the Ulta stores as we see an increase in the focus of eyebrows; because of this the Benefit Brow Bar is often excluded from the many promotions held by the company.

Charitable Giving

Starting from 2008, Ulta Beauty's focus in charity giving was The Breast Cancer Research Foundation. Their charitable donations fund research related to the causes, treatment, and possible prevention of breast cancer. By supporting this cause, which benefits women, their families, and their loved ones across the nation, Ulta Beauty seeks to not only bring a greater sense of community amongst women worldwide but also raise awareness about the importance of finding a cure.[17]

Ulta Beauty also hosts programs such as their annual Donate with a Kiss campaign, which raises funds for The Breast Cancer Research Foundation throughout the month of October, Ulta Beauty's Annual Charity Gold Outing, as well as Ulta Beauty's Annual Cut-A-Thon, where customers donate ten dollars to the cause in exchange for a haircut. In 2012, ULTA Beauty raised over 2 million dollars for The Breast Cancer Research Foundation.[18] In 2014, Ulta Beauty partnered with Ellen DeGeneres during Breast Cancer Awareness Month in October and donated $1.5 million for The Breast Cancer Research Foundation.[19]

Customer Loyalty Program

Ulta Beauty has a free customer loyalty program called Ultamate Rewards, where customers can redeem points on any in-store or online purchase they make with their membership card. Customers accumulate one point for every dollar that they spend and are not limited to what products they can redeem their points on. The points that Ulta customers earn expire in one year. Ulta customers who spend $450 within one year are upgraded to the next level called Platinum status. The main perks of obtaining Platinum status is that customers are able to earn points 25 percent faster and the points that they earn never expire.[20]

References

  1. 1 2 "Company Overview". Ulta.
  2. ↑ "About Us". Ulta.
  3. ↑ "About Us". Ulta.
  4. ↑ http://www.ulta.com/ulta/common/history.jsp
  5. ↑ "Chicago's $10 million CEOs". Chicago Tribune.
  6. ↑ "Ulta 2011 Sales Expected Between 5% and 7% for Established Stores – Beauty Salon Coupons Enhance Growth". Quarterly Retail Review. March 14, 2011.
  7. ↑ "Ulta Beauty Names Mary Dillion Chief Executive Officer". Yahoo! Finance.
  8. ↑ "Ulta beats 1st-quarter estimate". Chicago Tribune.
  9. ↑ "News Release: Ulta Beauty Announces Second Quarter 2014 Results". Ulta.
  10. ↑ "ULTA's Growth".
  11. ↑ "Beauty Emporiums Including Sephora and Ulta Are Riding a Wave of Popularity". New York Times. April 30, 2014.
  12. ↑ "Our Locations". Ulta.
  13. ↑ "Beauty Retailer Ulta aims for 1000 stores by 2017". Reuters.
  14. ↑ http://www.theagencysd.com/2012/11/battle-of-the-brands-sephora-vs-ulta/
  15. ↑ "Services Menu". Ulta.
  16. ↑ "Brow Bar". Ulta.
  17. ↑ "Ulta Beauty Gives Back: Charitable Giving at Ulta Beauty". Ulta.
  18. ↑ "PR Newswire: ULTA Beauty Cut-A-Thon In Support Of The Breast Cancer Research Foundation".
  19. ↑ "ULTA Beauty Donates $1.5 Million to The Breast Cancer Research Foundation". Ellen TV.
  20. ↑ "Ultamate Rewards". Ulta.
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