ULTA

Ulta Salon Cosmetics & Fragrance Inc

Consumer


Presented:04/14/2015
Price:$153.49
Cap:$9.86B
Current Price:$369.49
Cap:$17.41B

Presented

Date04/14/2015
Price$153.49
Market Cap$9.86B
Ent Value$9.32B
P/E Ratio38.6x
Book Value$19.44
Div YieldN/A
Shares O/S64.23M
Ave Daily Vol730,000
Short Int1.14%

Current

Price$369.49
Market Cap$17.41B
Ulta Salon, Cosmetics & Fragrance, Inc. operates as a specialty retailer in the United States. The company’s stores provide cosmetics, fragrance, haircare, skincare, bath and body products, and salon styling tools. It also offers cosmetics, which includes products for the face, eyes, cheeks, lips, and nails; haircare products, such as shampoos, conditioners, styling products, and hair accessories; and salon styling tools comprising hair dryers, curling irons, and flat irons. In addition, the company provides skincare, and bath and body products consisting of products for face, hands, and body; fragrances; nail polish and nailcare products; and men’s skincare, haircare, and fragrance products. Further, it offers private label products consisting of Ulta branded cosmetics, skincare, bath and body products, and haircare products; and other health and beauty products. As of January 31, 2015, it operated 774 stores in 47 states. Its full-service salon in its stores offers haircuts, hair coloring, and texturizing, as well as facials and waxing; and offers its products through its Website, ulta.com. Ulta Salon, Cosmetics & Fragrance, Inc. was founded in 1990 and is based in Bolingbrook, Illinois.

Publicly traded companies mentioned herein: Ulta Salon, Cosmetics & Fragrance (ULTA)

Highlights

The presenter believes shares of Ulta have the potential to double within the next two years based on fundamentals, but in the base case he throttles back his expectations to 30% upside over the next year as investors begin to recognize the impact of various top line and margin initiatives currently underway. Ulta’s superstore beauty concept has resonated incredibly well with customers, and the company appears to have many levers available to it to drive comps. A category dominant brand, the concept is additionally attractive given that it doesn’t require high cost real estate to thrive. 

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Idea Discussion

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