THE WHAT? Ulta Beauty has issued a COVID-19-related business update outlining actions it is taking to improve its financial flexibility and preserve financial liquidity while its stores remain temporarily closed.
THE DETAILS The US retailer has frozen pay rises, suspended new hires and reduced expense plans for all corporate and store associates, dialled back on its international expansion plans as well as US store openings and suspended its stock repurchase program, among other measures.
As Mary Dillon, Ulta CEO, explained, “As we continue to vigilantly monitor this dynamic situation, we remain committed to protecting the health of our associates, guests, and operations. We are operating with continued consideration and optimism rooted in the strength of our business model, and we look forward to the time when we can safely bring our store and salon associates back together to invite guests into Ulta Beauty stores,”
THE WHY? The US beauty retailer is concentrating its efforts on its digital arm and preserving cash flow as stores remain shuttered.