Exhibit 99.1
Company Contact:
Gregg Bodnar
Chief Financial Officer
(630) 410-4633
Investors/Media Contacts:
ICR, Inc.
Allison Malkin/Alecia Pulman
(203) 682-8225/(646) 277-1220
ULTA ANNOUNCES HOLIDAY SALES RESULTS
Holiday Comparable Store Sales Increase 7.9%
Increases Fourth Quarter Guidance
Bolingbrook, IL (January 7, 2010) Ulta Salon, Cosmetics & Fragrance, Inc. (the Company)
(NASDAQ: ULTA) today announced sales results for the seven-week holiday period from November 15,
2009 to January 2, 2010. This time period corresponds with the Companys holiday marketing
initiatives and represents the seven full weeks beginning the week before Thanksgiving through the
end of the week following Christmas.
Total net sales for the seven-week holiday period were $262.2 million, an 18.2% increase from
the prior year holiday period of $221.9 million. Comparable store sales for the holiday period
increased 7.9%, as compared to a 5.8% decrease during the same period in the prior year, resulting
in a two year comparable store sales increase of 2.1%.
Lyn Kirby, Ultas President and Chief Executive Officer, stated: The combination of dynamic
marketing, compelling offerings and enticing value drove an 8.8% increase in customer traffic which
led to a better-than-expected performance for the holiday season. The period also benefited from a
less promotional gift-giving environment across retail versus last year, especially in apparel. As
a result, we improved our merchandise margin and leveraged our marketing spend as a percentage of
net sales, as compared to last year. Based on our holiday results, we have raised our fourth
quarter expectations for sales and earnings.
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Outlook
Driven by favorable holiday sales, the Company is increasing its fourth quarter fiscal 2009
outlook provided in conjunction with its third quarter fiscal 2009 results on December 3, 2009.
The Company currently expects fourth quarter fiscal 2009 net sales in the range of $388
million to $392 million, as compared to its previous guidance for fourth quarter fiscal 2009 net
sales in the range of $362 million to $376 million. Fourth quarter fiscal 2008 net sales were
$341.4 million. Comparable store sales for the fourth quarter of fiscal 2009 are currently expected
to increase in a range of 4% to 5%, as compared to its previous expectation for fourth quarter
fiscal 2009 comparable store sales in the range of a decrease of 3% to an increase of 1% and versus
fourth quarter fiscal 2008 comparable store sales decrease of 5.5%.
Income per diluted share for the fourth quarter of fiscal 2009 is currently estimated in the
range of $0.28 to $0.30, as compared to its previous expectation for fourth quarter fiscal 2009
income per diluted share of $0.22 to $0.26 and versus fourth quarter fiscal 2008 income per diluted
share of $0.21.
The Company expects to report full results for the fourth quarter of fiscal 2009 and fiscal
year 2009 the week of March 8, 2010.
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About Ulta
Ulta is the largest beauty retailer that provides one-stop shopping for prestige, mass and
salon products and salon services in the United States. Ulta provides affordable indulgence to its
customers by combining the product breadth, value and convenience of a beauty superstore with the
distinctive environment and experience of a specialty retailer. Ulta offers a unique combination
of over 21,000 prestige and mass beauty products across the categories of cosmetics, fragrance,
haircare, skincare, bath and body products and salon styling tools, as well as salon haircare
products. Ulta also offers a full-service salon in all of its stores. The Company currently
operates 348 retail stores across 38 states and also distributes its products through the Companys
website: wellnessformetoday.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934 and the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, which reflect our current views with respect to, among other things,
future events and financial performance. You can identify these forward-looking statements by the
use of forward-looking words such as outlook, believes, expects, plans, estimates, or
other comparable words. Any forward-looking statements contained in this press release are based
upon our historical performance and on current plans, estimates and expectations. The inclusion of
this forward-looking information should not be regarded as a representation by us or any other
person that the future plans, estimates or expectations contemplated by us will be achieved. Such
forward-looking statements are subject to various risks and uncertainties, which include, without
limitation: the impact of weakness in the economy; changes in the overall level of consumer
spending; changes in the wholesale cost of our products; the possibility that we may be unable to
compete effectively in our highly competitive markets; the possibility that our continued opening
of new stores could strain our resources and have a material adverse effect on our business and
financial performance; the possibility that new store openings and existing locations may be
impacted by developer or co-tenant issues; the possibility that the capacity of our distribution
and order fulfillment infrastructure may not be adequate to support our recent growth and expected
future growth plans; the possibility of material disruptions to our information systems; weather
conditions that could negatively impact sales and other risk factors detailed in our public filings
with the Securities and Exchange Commission (the SEC), including risk factors contained in our
Annual Report on Form 10-K for the year ended January 31, 2009. Our filings with the SEC are
available at www.sec.gov. The Company does not undertake to publicly update or revise its
forward-looking statements, whether as a result of new information, future events or otherwise.
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