Ulta Salon, Cosmetics & Fragrance, Inc. operates specialty retail stores selling cosmetics, fragrance, haircare and skincare products, and related accessories in the United States. The stores also feature full-service salons. As of January 31, 2015, the company operated 774 stores in 47 states. Category Mix The company offers products in various categories, such as cosmetics, such as products for the face, eyes, cheeks, lips and nails; haircare, such as shampoos, conditioners, styling products and hair accessories; salon styling tools, such as hair dryers, curling irons, and flat irons; skincare and bath and body, such as products for the face, hands, and body; fragrance; nail polish and nailcare products; men’s skincare, haircare and fragrance products; private label, consisting of Ulta branded cosmetics, skincare, bath and body products, and haircare; and other health and beauty products. The company offers a combination of approximately 20,000 prestige and mass beauty products organized by category. It offers the selection of categories across prestige and mass cosmetics, fragrance, haircare, skincare, bath and body products and salon styling tools. The company also offers a full-service salon and a range of salon haircare products in all of its stores. The company’s stores are primarily located in convenient, high-traffic locations, such as power centers. The company offers approximately 500 brands, such as Bare Minerals and Urban Decay prestige cosmetics; NYX and Maybelline mass cosmetics; Coty and Estée Lauder fragrances; and Redken and Matrix haircare, as well as Dermalogica and Philosophy skincare and Clarisonic and CHI personal care appliances. The company also offers private label Ulta products in major categories, such as cosmetics, skincare, and bath. Because the company offers a range of products in prestige, mass and salon, it appeals to a range of customers, including women of all ages, demographics and lifestyles. Salon The company operates full-service salons in all of its stores. Its Ulta store format includes an open and modern salon area with approximately 8 to 10 stations. The entire salon area is approximately 950 square feet with a concierge desk, skin treatment room or dedicated skin treatment area, semi-private shampoo and hair color processing area. Each salon is a full-service salon offering haircuts, hair coloring and texturizing, with various salons also providing facials and waxing. Ulta.com Ulta.com supports the major elements of the company’s brand proposition and provides access to approximately 19,000 beauty products from various brands. The company intends to expand its e-commerce distribution capabilities with the addition of two new distribution centers. Markets The company operates within the U.S. beauty products and salon services industry. The beauty products industry includes color cosmetics, haircare, fragrance, bath and body, skincare, salon styling tools, and other toiletries. Suppliers The company’s major suppliers include Bare Minerals, Coty, Estée Lauder, L’Oréal, and The Procter and Gamble Company, among others. Strategy The company’s six strategic imperatives to drive sustainable long-term growth include acquiring new guests and deepening loyalty with existing guests; differentiating by delivering a distinctive and personalized guest experience across all channels; offering relevant, innovative and often exclusive products that excite its guests; delivering exceptional services in three core areas, such as hair, skin health, and brows; improving stores and e-commerce to reach and serve various guests; and investing in infrastructure to support its guest experience and growth, and capturing scale efficiencies. Intellectual Property The company has registered approximately 40 trademarks in the United States and other countries. The majority of its trademark registrations contain the ULTA mark, including Ulta Salon Cosmetics Fragrance (and design), Ulta.com and Ulta Beauty and two related designs. Government Regulation Majority of the products that the company sells in its stores, such as cosmetic, dietary supplement, food and over-the-counter drug products, including its Ulta branded products, are subject to regulation by the U.S. Food and Drug Administration, the U.S. Federal Trade Commission, state regulatory agencies, and State Attorneys General. Seasonality The company’s business is subject to seasonal fluctuation. Significant portions of its net sales and profits are realized during the fourth quarter of the fiscal year (year ending January 2015) due to the holiday selling season. To a lesser extent, the company’s business is also affected by Mothers’ Day, as well as the ‘Back to School’ season and Valentine’s Day. History Ulta Salon, Cosmetics & Fragrance, Inc. was founded in 1990. The company was incorporated in the state of Delaware in 1990.
ulta salon cosmetics & fragr
1000 Remington Boulevard
Bolingbrook, IL 60440
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