ULTA Salon, Cosmetics and Fragrance, Inc.: Largest Beauty Retailer
cosInvestment thesis on:
NASDAQ Code: ULTA
Current market price (As on 27-06-2012): $ 93.26
Market Capitalization: $ 5533 mn
Enterprise value: $ 5267 mn
No of outstanding shares: 62.88 mn
Call: LONG
Thesis:
We call for a long position because of the aggressive growth plans made by the management and also the ability of the highly experienced management to carry it out positively. Also there has been a momentum in the stock price of ULTA over the last 14 months or so. We expect that inertia to continue further owing to the double digit same store sales growth numbers for the last 8 quarters. We expect the price to at $119 per share.
Business description:
ULTA Salon, Cosmetics & Fragrance, Inc. is the largest beauty retailer that provides one-stop shopping forprestige, mass and salon products and salon services in the United States. ULTA focuses on providing affordable indulgence to our customers by combining the product breadth, value and convenience of a beauty superstore with the distinctive environment and experience of a specialty retailer. Key aspects of ULTA’s business include:
One-Stop Shopping: They believe in offering the widest selection of categories across prestige and mass cosmetics, fragrance, haircare, skincare, bath and body products and salon styling tools. They also offer a full-service salon and a wide range of salon haircare products in all of our stores. This give the customer a comprehensive shopping and styling experience under one roof at a time.
Value Proposition: ULTA believes in giving a value proposition to its customers they do this byrunning frequent promotions and coupons offers for their mass brands, gift-with-purchase offers and multi-product gift sets for their prestige brands, and a comprehensive customer loyalty program.
An Off-Mall Location: ULTA stores are predominately located in convenient, high-traffic locations such as power centers
Stores:
As on 30-Apr-2012, ULTA has 467 stores spread across 44
NASDAQ Code: ULTA
Current market price (As on 27-06-2012): $ 93.26
Market Capitalization: $ 5533 mn
Enterprise value: $ 5267 mn
No of outstanding shares: 62.88 mn
Call: LONG
Thesis:
We call for a long position because of the aggressive growth plans made by the management and also the ability of the highly experienced management to carry it out positively. Also there has been a momentum in the stock price of ULTA over the last 14 months or so. We expect that inertia to continue further owing to the double digit same store sales growth numbers for the last 8 quarters. We expect the price to at $119 per share.
Business description:
ULTA Salon, Cosmetics & Fragrance, Inc. is the largest beauty retailer that provides one-stop shopping forprestige, mass and salon products and salon services in the United States. ULTA focuses on providing affordable indulgence to our customers by combining the product breadth, value and convenience of a beauty superstore with the distinctive environment and experience of a specialty retailer. Key aspects of ULTA’s business include:
One-Stop Shopping: They believe in offering the widest selection of categories across prestige and mass cosmetics, fragrance, haircare, skincare, bath and body products and salon styling tools. They also offer a full-service salon and a wide range of salon haircare products in all of our stores. This give the customer a comprehensive shopping and styling experience under one roof at a time.
Value Proposition: ULTA believes in giving a value proposition to its customers they do this byrunning frequent promotions and coupons offers for their mass brands, gift-with-purchase offers and multi-product gift sets for their prestige brands, and a comprehensive customer loyalty program.
An Off-Mall Location: ULTA stores are predominately located in convenient, high-traffic locations such as power centers
Stores:
As on 30-Apr-2012, ULTA has 467 stores spread across 44