Ulta Beauty announces long-term financial goals and strategic priorities

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BOLINGBROOK, Illinois – (COMMERCIAL THREAD) – Ulta Beauty, Inc. (NASDAQ: ULTA) will host its 2021 Virtual Analyst and Investor Conference today, Tuesday, October 19, 2021 starting at 8:30 a.m. Central Time. Along with the event, the company announces longer-term financial goals and takes stock of its strategic priorities.

“Reflecting our understanding of the evolution of the consumer and beauty category, we have updated our strategic framework and are delighted to share our vision for the future of Ultra Beauty. We have a long history of disruption, creativity and success, and we intend to build on this foundation and continue to lead the beauty category, seamlessly connecting physical and digital channels, expanding our share. market and increasing member loyalty, ”said Dave Kimbell, CEO. “We are optimistic about the opportunities ahead and believe the power of the beauty category, coupled with our proven business model, experienced management team and values-based culture, positions Ulta Beauty to continue to deliver value. long term for shareholders. ”

Long-term financial goals

Ulta Beauty announces long-term financial goals for fiscal years 2022 to 2024.

Financial measure

Target*

Total growth in net sales

5% to 7% (CAGR)

Net growth in new stores

50 stores per year

Comparable sales

3% to 5% per year

Operating profit (as a percentage of sales)

13% to 14%

Diluted earnings per share

Low double-digit growth (CAGR)

Capital expenditure (as a percentage of sales)

4% to 5%

* Long-term goals shown by the CAGR represent the compound annual growth rate using 2019 as the base year.

Strategic priorities:

At today’s conference, the company will share an updated strategic framework to support its vision of being the most loved beauty destination and the most admired retailer, as it continues to increase its share of market and generate profitable growth. This framework prioritizes the following elements:

  • Stimulate revolutionary and disruptive growth by broadening the definition of All things beauty;

  • Evolve omnichannel experiences with connected physical and digital ecosystems Everything in your world;

  • Extend and deepen the company’s presence throughout the beauty journey for consumers as a Heart of the beauty community;

  • Promote operational excellence and optimization;

  • Protect and cultivate world-class culture and talent; and

  • Develop the environmental and social impact of the company.

Highlights of the presentations will include:

  • Introducing “Beauty to Go,” a commitment that Online Purchase Orders and In-Store Pickup (BOPIS) will be ready for pickup in two hours or less, giving customers quick and convenient access to the beauty that ‘they wish the most;

  • Launch of same-day delivery in certain markets;

  • Announcing a New Partnership with Google to Leverage Ulta Beauty’s GlamLab Virtual Trial Tool for Lipsticks and Eyeshadow with Selected Brands on Google’s Search and YouTube Platforms;

  • Announced a strategic investment and partnership with Adeptmind, a leading AI retail technology company creating advanced digital discovery solutions, to power a new personalized search engine for the digital store of the future of the company;

  • Unveiling of a $ 20 million digital innovation fund to enable the company to partner closely with innovators, entrepreneurs, start-up investors and other agents of change to transform the future of the beauty, retail and trade;

  • Launch UB Media, a new business model that harnesses the power of our first party data to transform the way our partner brands can connect with beauty lovers;

  • New efforts to increase customer engagement who bring together entertainment, expertise and commerce across an ecosystem of creators and content;

  • Scaling personalization capabilities, leveraging the power of our unmatched data to deepen member engagement and loyalty;

  • Announcing a new multi-year savings target of $ 150-200 million to fund investments in future growth initiatives;

  • Investments to build a customer-centric supply chain by improving the physical network, technology and business capabilities to support organizational growth; and

  • Plans to upgrade its Enterprise Resource Planning (ERP) platform through a business-led, multi-year transformation called Project SOAR.

Webcast information

Today’s analyst and investor conference will be webcast live from 8:30 a.m. CST to 12:30 p.m. CST at www.ulta.com/investor. A replay of the webcast will be available for 90 days.

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 safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which reflect the current views of the company regarding , among others, future events and financial performance. These statements may be identified by the use of forward-looking words such as “outlook”, “belief”, “expects”, “plans”, “estimates”, “goals”, “strategies” or other comparable words. . All forward-looking statements contained in this press release are based on the historical performance of the company and on current plans, estimates and expectations. The inclusion of such forward-looking information should not be construed as a representation by the company or any other person that the future plans, estimates, objectives, strategies or expectations contemplated by the company will be realized. These forward-looking statements are subject to various risks and uncertainties, which include, but are not limited to:

  • The negative impacts that the COVID-19 pandemic has had and will continue to have on the business, financial condition, profitability, cash flow and supply chain of the company, as well as on consumer spending (including uncertain future impacts);

  • epidemics, pandemics such as COVID-19 or natural disasters that have and could continue to have a negative impact on the company’s sales;

  • changes in the overall level of consumer spending and the volatility of the economy, particularly due to the COVID-19 pandemic and / or government assistance programs;

  • a decline in operating results which has led and may continue to lead to asset impairments and store closure charges;

  • the company’s ability to maintain its growth plans and successfully implement its long-term strategic and financial plan;

  • the company’s ability to assess beauty trends and respond in a timely manner to changes in consumer preferences;

  • the possibility that the company may not be able to compete effectively in its highly competitive markets;

  • the company’s ability to execute its operational excellence priorities, including continuous improvement efforts, project SOAR (its replacement enterprise resource planning platform), and business chain optimization ‘supply ;

  • the possibility that cybersecurity breaches and other disruption could compromise company information or lead to the unauthorized disclosure of confidential information;

  • the possibility of material disruption of the company’s information systems;

  • the possibility that the capacity of the Company’s distribution and fulfillment infrastructure and the performance of its distribution centers and rapid fulfillment centers may not be sufficient to support its recent growth and expected future growth plans ;

  • changes in the wholesale price of the company’s products;

  • the possibility that new store openings and existing locations will be affected by developer or roommate issues;

  • the company’s ability to attract and retain key executives;

  • the company’s ability to successfully execute its common share repurchase program or to implement future common share repurchase programs; and

  • other risk factors detailed in the company’s public filings with the Securities and Exchange Commission (SEC), including risk factors contained in its annual report on Form 10-K for the year ended 30 January 2021, as may be amended or supplemented in its quarterly reports subsequently filed on form 10-Q.

Documents filed by the company with the SEC are available at www.sec.gov. Except to the extent required by 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.

About Ulta Beauté

At Ulta Beauty (NASDAQ: ULTA), the possibilities are great. Ulta Beauty is the largest beauty retailer in the United States and the premier beauty destination for cosmetics, perfumes, 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 products, bringing everything beauty related in one place. Today, Ulta Beauty operates more than 1,300 retail stores in 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.

Ulta Beauty was recently added to the Bloomberg Gender Equality Index, which tracks the financial performance of public companies committed to supporting gender equality through policy development, representation and transparency. You can find more information about Ulta Beauty’s corporate responsibility efforts at www.ulta.com/investor/esg.


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