Ulta Beauty Provides COVID-19-Related Business Update

Ulta Beauty, Inc. (NASDAQ: ULTA) today shared further updates to its operations in response to the COVID-19 pandemic.

“As we navigate this very fluid situation, our teams are evaluating all new information, including recently passed legislation, to ensure we can make the best decisions for our associates, our guests and our business,” said Mary Dillon, chief executive officer. “After thoughtful consideration, we have made the difficult decision to temporarily furlough many of our store and salon associates. During these uncertain times, we will do all we can to make sure these associates are supported.”

With every intention of bringing its workforce back when it is safe to do so, the temporary furlough will be effective April 19, 2020. In the interim, furloughed associates will be eligible to apply for unemployment benefits, which were recently increased with the passing of the federal CARES Act. All furloughed associates participating in company benefit plans will remain enrolled in their respective coverages. Ulta Beauty has curated relevant resources and information to help guide associates during this interim furlough and offers continued access to its Human Resources Support Center. The company shared these resources internally in tandem with this announcement.

As the company manages the COVID-19 pandemic, Dillon has elected to indefinitely forgo her base salary. Additionally, the CEO has made a personal donation of $500,000 to the Ulta Beauty Associate Relief Program, which is part of the Ulta Beauty Charitable Foundation. The program, established in 2017, provides monetary grants to associates facing personal hardship. Of note, grant criteria was expanded to include those in need of assistance due to a personal hardship as a result of COVID-19. The Ulta Beauty executive team and Board of Directors will each make personal donations as well.

Associates supporting the Ulta Beauty distribution centers will continue operations to support the company’s essential e-commerce business. As previously announced, Ulta Beauty is providing associates actively working at the distribution centers a $2-per-hour wage premium for their continued commitment. As needed, select corporate associates are being reallocated to support the most pressing business needs such as guest services, human resources, and others.