Ulta Beauty Provides COVID-19-Related Business Update
April 02 2020 - 8:00AM
Business Wire
Ulta Beauty, Inc. (NASDAQ: ULTA) today provided a business
update in advance of the Company’s participation at the J.P. Morgan
Retail Round-Up Virtual Conference.
“A few weeks ago, we made the difficult decision to close all of
our brick and mortar stores to help contain the spread of the
coronavirus. Since March 20, Ulta Beauty has been a digital-only
business. Although we do not expect to fully offset the revenue
impact of our store closings, the multi-year, strategic investments
we have made to enhance our omnichannel and supply chain
capabilities, combined with the ongoing commitment of our
distribution associates, have enabled us to support increased
e-commerce demand and guest engagement,” said Mary Dillon, chief
executive officer. “As we continue to support our essential
e-commerce operations, we are taking actions in parallel to ensure
that we maintain our financial strength and flexibility in the near
term and position Ulta Beauty for long-term growth.”
As previously announced, Ulta
Beauty has taken several actions as part of its response to the
continued spread of COVID-19 to improve its financial flexibility,
including drawing down $800.0 million under its $1.0 billion
revolving credit facility on March 18, 2020. In addition, the
Company has taken the following steps to preserve financial
liquidity while its stores remain temporarily closed:
- Reducing expense plans, suspending new hires, and deferring
merit increases for all corporate and store associates;
- Moderating the pace of investments to build international
capabilities, but the Company continues to expect to have an
omnichannel presence in Canada in 2021;
- Aligning inventory receipts with current sales trends and
prioritizing expense payment obligations to focus primarily on
essential services;
- Reducing capital expenditure plans, particularly as it relates
to new store openings; while the Company plans to open new stores
this year, it no longer expects to open a total of 75 new stores in
fiscal 2020 and is working on an adjusted plan for new store
openings, relocations and remodel projects; and
- Suspended its stock repurchase program.
“As we continue to vigilantly monitor this dynamic situation, we
remain committed to protecting the health of our associates,
guests, and operations. We are operating with continued
consideration and optimism rooted in the strength of our business
model, and we look forward to the time when we can safely bring our
store and salon associates back together to invite guests into Ulta
Beauty stores,” continued Dillon.
J.P. Morgan Retail Round-Up Virtual Conference
Mary Dillon, chief executive
officer, Scott Settersten, chief financial officer, and Dave
Kimbell, president, will participate in a “Fireside Chat” at the
J.P. Morgan 6th Annual Virtual Retail Round Up today, Thursday,
April 2, 2020, at 2:30 p.m. Eastern Time / 1:30 p.m. Central Time.
The presentation will be webcast live at
http://ir.ultabeauty.com.
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. As of February 1, 2020, Ulta Beauty
operates 1,254 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 our current
views with respect to, among other things, future events and
financial performance. You can identify these forward-looking
statements 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 our
historical performance and on current plans, estimates and
expectations. The inclusion of this forward-looking information
should not be regarded as a representation by us or any other
person that the future plans, estimates, targets, strategies or
expectations contemplated by us 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) will
have on our business, financial condition, profitability, cash
flows and supply chain, as well as consumer spending;
- epidemics, pandemics like COVID-19 or natural disasters that
could negatively impact sales;
- changes in the overall level of consumer spending and
volatility in the economy;
- our ability to sustain our growth plans and successfully
implement our long-range strategic and financial plan;
- our ability to gauge beauty trends and react to changing
consumer preferences in a timely manner;
- the possibility that we may be unable to compete effectively in
our highly competitive markets;
- our ability to execute our Efficiencies for Growth cost
optimization program;
- the possibility that cybersecurity breaches and other
disruptions could compromise our information or result in the
unauthorized disclosure of confidential information;
- the possibility of material disruptions to our information
systems;
- the possibility that the capacity of our distribution and order
fulfillment infrastructure and the performance of our newly opened
and to be opened distribution centers may not be adequate to
support our recent growth and expected future growth plans;
- changes in the wholesale cost of our products;
- the possibility that new store openings and existing locations
may be impacted by developer or co-tenant issues;
- our ability to attract and retain key executive personnel;
- our ability to successfully execute our common stock repurchase
program or implement future common stock repurchase programs;
and
- other risk factors detailed in our public filings with the
Securities and Exchange Commission (the SEC), including risk
factors contained in our Annual Report on Form 10-K for the year
ended February 1, 2020, as such may be amended or supplemented in
our subsequently filed Quarterly Reports on Form 10-Q.
Our 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/20200402005192/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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