Author Topic: ULTA - Ulta Beauty  (Read 62677 times)

KCLarkin

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Re: ULTA - Ulta Beauty
« Reply #50 on: March 20, 2020, 12:57:15 PM »
The operating leverage on retailers can be brutal

Sure. But let's assume they keep all fixed costs and revenue goes to $0 for one year. They lose $1.5B. They have $400 M in cash. Some inventory. A line of credit. I think they survive.

In this scenario, every department store is out of business. Duty free sales of cosmetics are zero. Ulta is ramping up delivery, etc.


DooDiligence

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Re: ULTA - Ulta Beauty
« Reply #51 on: June 12, 2020, 10:37:19 AM »
A "clean sheet" is a great thing for a keeper, but for ULTA, eek. This could go either way.

They've been making strides in e-commerce but IDK, will trying on virtual makeup really work? I checked it out & it was funny as hell (TBF, I'm a dude & have never worn makeup & have no plans to start any time soon). This may just work for some shoppers though.

www.wsj.com/articles/ulta-beauty-undertakes-review-of-its-1-254-stores-11591797600

Small position here.
« Last Edit: June 12, 2020, 10:41:32 AM by DooDiligence »
AFL // BRK.B // CLB an incredibly stupid move // EW // GPC // MO an incredibly stupid ex-CEO // MTB // NVO // PSX // TRMD // ULTA // VDE // VLGEA // WFC

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roark33

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Re: ULTA - Ulta Beauty
« Reply #52 on: June 12, 2020, 11:00:57 AM »
My wife ordered directly from her make-up company during the shutdown, saved $15 vs Ulta price and had free delivery.  It took like 2 weeks to come, but I expect brands to improve their ecommerce area, and for her, she knows what makeup she needs, so she will start ordered from direct from now own.  (her order was only $45, so $15 was a big amount, i.e. was $60 at ulta). 

DooDiligence

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Re: ULTA - Ulta Beauty
« Reply #53 on: June 12, 2020, 01:19:34 PM »
My wife ordered directly from her make-up company during the shutdown, saved $15 vs Ulta price and had free delivery.  It took like 2 weeks to come, but I expect brands to improve their ecommerce area, and for her, she knows what makeup she needs, so she will start ordered from direct from now own.  (her order was only $45, so $15 was a big amount, i.e. was $60 at ulta).

What was the company she ordered from?
AFL // BRK.B // CLB an incredibly stupid move // EW // GPC // MO an incredibly stupid ex-CEO // MTB // NVO // PSX // TRMD // ULTA // VDE // VLGEA // WFC

Investable cash 16% + 18 months of survival $

roark33

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Re: ULTA - Ulta Beauty
« Reply #54 on: June 12, 2020, 01:23:54 PM »
Lancome. 

DooDiligence

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Re: ULTA - Ulta Beauty
« Reply #55 on: June 12, 2020, 01:30:59 PM »
Lancome.

DTC, the internet is the great leveler.
AFL // BRK.B // CLB an incredibly stupid move // EW // GPC // MO an incredibly stupid ex-CEO // MTB // NVO // PSX // TRMD // ULTA // VDE // VLGEA // WFC

Investable cash 16% + 18 months of survival $

valueinvestor

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Re: ULTA - Ulta Beauty
« Reply #56 on: June 12, 2020, 01:37:28 PM »

roark33

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Re: ULTA - Ulta Beauty
« Reply #57 on: June 12, 2020, 02:54:04 PM »
You could tell that Lancome doesn't have their DTC game up to speed, it took almost two weeks and we had no notifications of it being sent or anything.  But the huge price differential, and the ease of ordering does make me really think about these marginal purchases as a drag on Ulta going forward. 

KCLarkin

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Re: ULTA - Ulta Beauty
« Reply #58 on: June 12, 2020, 03:33:27 PM »
You could tell that Lancome doesn't have their DTC game up to speed, it took almost two weeks and we had no notifications of it being sent or anything.  But the huge price differential, and the ease of ordering does make me really think about these marginal purchases as a drag on Ulta going forward.

Really surprised Lancome would risk channel conflict, especially with such horrible fullfillment.

roark33

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