Ulta Beauty, Inc. (NASDAQ: ULTA) today shared further updates to
its operations in response to the COVID-19 pandemic.
“As we navigate this very
fluid situation, our teams are evaluating all new information,
including recently passed legislation, to ensure we can make the
best decisions for our associates, our guests and our business,”
said Mary Dillon, chief executive officer. “After thoughtful
consideration, we have made the difficult decision to temporarily
furlough many of our store and salon associates. During these
uncertain times, we will do all we can to make sure these
associates are supported.”
With every intention of bringing its workforce back when it is
safe to do so, the temporary furlough will be effective April 19,
2020. In the interim, furloughed associates will be eligible to
apply for unemployment benefits, which were recently increased with
the passing of the federal CARES Act. All furloughed associates
participating in company benefit plans will remain enrolled in
their respective coverages. Ulta Beauty has curated relevant
resources and information to help guide associates during this
interim furlough and offers continued access to its Human Resources
Support Center. The company shared these resources internally in
tandem with this announcement.
As the company manages the COVID-19 pandemic, Dillon has elected
to indefinitely forgo her base salary. Additionally, the CEO has
made a personal donation of $500,000 to the Ulta Beauty Associate
Relief Program, which is part of the Ulta Beauty Charitable
Foundation. The program, established in 2017, provides monetary
grants to associates facing personal hardship. Of note, grant
criteria was expanded to include those in need of assistance due to
a personal hardship as a result of COVID-19. The Ulta Beauty
executive team and Board of Directors will each make personal
donations as well.
Associates supporting the Ulta
Beauty distribution centers will continue operations to support the
company’s essential e-commerce business. As previously announced,
Ulta Beauty is providing associates actively working at the
distribution centers a $2-per-hour wage premium for their continued
commitment. As needed, select corporate associates are being
reallocated to support the most pressing business needs such as
guest services, human resources, and others.
“As we move forward, we intend
to stay true to our company values and work towards the day when we
can reopen with the most strength and safety as possible,”
continued Dillon. “This means we will continue to make important
decisions in an effort to support our business and importantly, our
teams. In these unprecedented times, we want to do our part to help
the larger, global community and take care of our Ulta Beauty
family. We are in this together.”
In its part to help the community of healthcare workers on the
frontlines, Ulta Beauty will donate 450,000 medical grade gloves
from its salons to hospitals in need across the country in
collaboration with FEMA.
Ulta Beauty stores will remain
closed until it is safe to reopen in support of efforts to slow the
spread of COVID-19 and to safeguard associates and guests alike.
The company will continue to consider available guidance from
federal, state, and local government and health officials regarding
when to reopen stores. All guests can continue to shop through the
Ulta Beauty app or visit ulta.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
operated 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 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) will
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
could negatively impact the company’s sales;
- changes in the overall level of consumer spending and
volatility in the economy;
- the company’s ability to sustain its growth plans and
successfully implement our 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 may be 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/20200408005679/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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