Ulta Beauty, Inc. is the largest specialty beauty retailer in the United States, offering a wide selection of cosmetics, fragrance, skincare, haircare, and salon services. The company operates over 1,350 stores and has a strong online presence through its website and mobile applications. Ulta Beauty's business model combines prestige and mass market products, along with salon services, creating a unique shopping experience for beauty enthusiasts. The company's competitive advantages include its broad assortment, loyalty program, and omnichannel capabilities.

• Employees: 56,000 (as of February 3, 2024)
• Geographic Footprint: 50 states in the United States
• Headquarters: Bolingbrook, Illinois
• Founded: 1990
• Number of locations/facilities: 1,385 retail stores, 4 distribution centers, 2 fast fulfillment centers, and 1 market fulfillment center
• Revenue: $11.2 billion (FY2023)
• Market Capitalization: $17.5 billion (as of July 28, 2023)
• Key Subsidiaries/Brands: Ulta Beauty Collection (private label)

• CEO: David C. Kimbell
• CFO: Scott M. Settersten
• President and Chief Operating Officer: Kecia L. Steelman
• General Counsel, Chief Risk & Compliance Officer and Corporate Secretary: Jodi J. Caro
• Chief Human Resources Officer: Anita J. Ryan

David C. Kimbell was named CEO in June 2021, after serving as President since December 2019. Kecia Steelman was named President and Chief Operating Officer in September 2023. Scott M. Settersten has been CFO since March 2013. Jodi J. Caro has been General Counsel since August 2015. Anita J. Ryan has been Chief Human Resources Officer since April 2022.

• Annual Revenue: $11.2 billion (FY2023)
• Net Income: $1.3 billion
• Market Cap: $17.5 billion (as of July 28, 2023)
• Total Assets: $5.7 billion
• Number of Employees: 56,000 (as of February 3, 2024)
• Key Financial Highlights: Comparable sales increased by 5.7% in fiscal 2023.

Ulta Beauty offers a wide range of beauty products and services:

• Cosmetics: Makeup products from various brands and price points.
• Skincare: Products for facial and body care.
• Haircare: Shampoos, conditioners, styling tools, and hair treatments.
• Fragrance and Bath: Perfumes, colognes, and bath and body products.
• Salon Services: Hair, makeup, brow, and skin services.
• Accessories and Other: Includes private label and co-branded credit card programs, royalties, and gift card breakage.

Ulta Beauty operates as a single reportable segment, which includes retail stores, salon services, and e-commerce. Revenue breakdown by category is as follows:

• Cosmetics: 41% of net sales (FY2023)
• Skincare: 19% of net sales (FY2023)
• Haircare Products and Styling Tools: 19% of net sales (FY2023)
• Fragrance and Bath: 15% of net sales (FY2023)
• Services: 3% of net sales (FY2023)
• Accessories and Other: 3% of net sales (FY2023)

Ulta Beauty's strategic priorities include:

• Driving breakthrough growth by expanding the definition of beauty to include wellness and self-care.
• Evolving the omnichannel experience through connected physical and digital ecosystems.
• Deepening its presence in the beauty community by understanding consumer values and preferences.
• Driving operational excellence and optimization to improve efficiency and reduce costs.
• Protecting and cultivating a world-class culture and talent.
• Expanding environmental and social impact through sustainable practices.

The company is focused on growing its market share through new store openings, enhancing its digital platforms, and expanding its loyalty program. Ulta Beauty is also investing in supply chain improvements and technology upgrades to support future growth.

Ulta Beauty operates in the large and growing U.S. beauty products and salon services industry. The market is highly competitive and fragmented. Key competitors include:

• Traditional department stores
• Specialty retailers
• Drug stores
• Mass merchandisers
• Online retailers and marketplaces
• Pure-play e-commerce companies
• Salon chains and independent salons

Ulta Beauty estimates it has a 9% share of the $112 billion beauty product industry and less than 1% share of the $69 billion salon services industry. Key market trends include the increasing importance of online shopping, the growing focus on self-care and wellness, and the demand for sustainable and inclusive products.

• Business, Operational, and Strategic Risks: Inability to sustain growth plans, failure to gauge beauty trends, significant interruptions in distribution operations.
• Financial Risks: Fluctuations in comparable sales, inventory shrink, macroeconomic conditions affecting consumer spending.
• Competitive Risks: Intense competition from various types of retailers, including online and pure-play e-commerce companies.
• Supply Chain Risks: Dependence on brand partners and third-party vendors, potential disruptions in overseas sourcing operations.
• Regulatory Risks: Compliance with extensive laws and regulations related to product safety, labeling, and advertising.