Ulta Beauty Provides COVID-19-Store Related Business Update
July 20 2020 - 3:30PM
Business Wire
Ulta Beauty, Inc. (NASDAQ: ULTA) today shared further updates to
its operations as it continues to navigate the impact of
COVID-19.
“In navigating the fluid
dynamics of COVID-19, we are keeping the safety of our guests and
associates at the heart of every decision we make,” said Mary
Dillon, chief executive officer. “In parallel, we are making
decisions to ensure continued strength as an industry leader with
an eye towards long-term growth.”
As of today, Ulta Beauty has
completed its phased reopening process. To meet individual comfort
levels, guests can shop via Curbside Pickup, Buy Online Pickup in
Store, on ulta.com, via the Ulta Beauty app and in Ulta Beauty
stores. In addition to our Shop Safe Standards, starting today Ulta
Beauty will require all guests and associates to wear facial
coverings when in stores. As different parts of the country manage
rising COVID-19 cases, the Company will maintain its close
monitoring of government and health guidance as well as local case
prevalence to inform nimble actions where necessary.
Mirroring its thoughtful
reopening approach, the Company began welcoming back furloughed
employees consistent with individual store operational needs. To
date, approximately 50% of those furloughed in April have been
reactivated.
“Our differentiated operating
model, strong brand, dedicated associates, and engaging guest
experiences continue to reinforce our optimism in long-term
opportunities to increase market share and expand our retail
footprint over time,” continued Dillon. “We anticipate COVID-19
will influence longer-term market shifts and create new real estate
opportunities, supporting our ambition to ultimately operate
between 1,500 to 1,700 Ulta Beauty stores in the U.S. To do so, we
are proactively optimizing our real estate portfolio and have made
strategic decisions to temporarily reduce new store openings and
close a limited number of stores this year. Overall, our real
estate portfolio generates healthy returns, and this limited and
targeted approach to closing stores will position Ulta Beauty for
even stronger financial performance in the future.”
Given the uncertainty and
disruption created by COVID-19, the Company continues to refine its
near-term new store opening plans and expects to open approximately
30 new stores in fiscal 2020. New store activity was temporarily
paused in the first quarter due to COVID-19; openings are expected
to resume in August 2020. As new store opening plans are finalized
for fiscal 2021, the Company anticipates opening additional new
stores in the U.S. and in mid-2021, will make its entry to Canada
with a number of stores. In addition, after evaluating its existing
store portfolio, the Company plans to permanently close 19 stores
in the second and third quarter of 2020. The Company intends to
reassign affected store and salon associates where
possible.
The Company plans to announce
second quarter financial results on Thursday, August 27, 2020,
after the market closes.
About Ulta Beauty
At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful.
Ulta Beauty is the largest U.S. beauty retailer and the premier
beauty destination for cosmetics, fragrance, skin care products,
hair care products and salon services. In 1990, the Company
reinvented the beauty retail experience by offering a new way to
shop for beauty – bringing together All Things Beauty, All In One
Place. Today, Ulta Beauty has grown to become the top national
retailer offering the complete beauty experience.
Ulta Beauty brings possibilities to life through the power of
beauty each and every day in our stores and online with more than
25,000 products from approximately 500 well-established and
emerging beauty brands across all categories and price points,
including Ulta Beauty’s own private label. Ulta Beauty also offers
a full-service salon in every store featuring hair, skin, brow, and
make-up services.
Ulta Beauty is recognized for its commitment to personalized
service, fun and inviting stores and our industry-leading Ultamate
Rewards loyalty program. Ulta Beauty operates retail stores across
50 states and also distributes its products through its website,
which includes a collection of tips, tutorials, and social content.
For more information, visit www.ulta.com.
Forward‑Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended, and the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, which reflect the
company’s current views with respect to, among other things, future
events and financial performance. These statements can be
identified by the use of forward-looking words such as “outlook,”
“believes,” “expects,” “plans,” “estimates,” “targets,”
“strategies” or other comparable words. Any forward-looking
statements contained in this press release are based upon the
company’s historical performance and on current plans, estimates
and expectations. The inclusion of this forward-looking information
should not be regarded as a representation by the company or any
other person that the future plans, estimates, targets, strategies
or expectations contemplated by the company will be achieved. Such
forward-looking statements are subject to various risks and
uncertainties, which include, without limitation:
- The uncertain negative impacts the coronavirus (COVID-19) has
had, and will continue to have, on the company’s business,
financial condition, profitability, cash flows and supply chain, as
well as consumer spending;
- epidemics, pandemics like COVID-19 or natural disasters that
have and could continue to negatively impact the company’s
sales;
- changes in the overall level of consumer spending and
volatility in the economy, including as a result of the COVID-19
pandemic;
- the company’s ability to sustain its growth plans and
successfully implement its long-range strategic and financial
plan;
- the company’s ability to gauge beauty trends and react to
changing consumer preferences in a timely manner;
- the possibility that the company may be unable to compete
effectively in its highly competitive markets;
- the company’s ability to execute its Efficiencies for Growth
cost optimization program;
- the possibility that cybersecurity breaches and other
disruptions could compromise the company’s information or result in
the unauthorized disclosure of confidential information;
- the possibility of material disruptions to the company’s
information systems;
- the possibility that the capacity of the company’s distribution
and order fulfillment infrastructure and the performance of its
newly opened and to be opened distribution centers may not be
adequate to support its recent growth and expected future growth
plans;
- changes in the wholesale cost of the company’s products;
- the possibility that new store openings and existing locations
may be impacted by developer or co-tenant issues;
- the company’s ability to attract and retain key executive
personnel;
- the company’s ability to successfully execute its common stock
repurchase program or implement future common stock repurchase
programs; and
- other risk factors detailed in the company’s public filings
with the Securities and Exchange Commission (the SEC), including
risk factors contained in its Annual Report on Form 10-K for the
year ended February 1, 2020, as such were amended and supplemented
in the Company’s Quarterly Report on Form 10-Q for the quarterly
period ended May 2, 2020, and which may be further amended or
supplemented in its subsequently filed Quarterly Reports on Form
10-Q.
The company’s filings with the SEC are available at www.sec.gov.
Except to the extent required by the federal securities laws, the
Company does not undertake to publicly update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200720005696/en/
Investor Contacts: Kiley Rawlins, CFA Vice President, Investor
Relations krawlins@ulta.com (331) 757-2206 Patrick Flaherty Senior
Manager, Investor Relations pflaherty@ulta.com (331) 253-3521 Media
Contact: Eileen Ziesemer Vice President, Public Relations
eziesemer@ulta.com (708) 305-4479
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