The Coronavirus Pandemic and a Story Of Survival: How Planet Fitness, Ulta Beauty, And Kohl’s Changed Their Business Models To Successfully Whether The Storm Of The Coronavirus and Surge Forward Towards Profitability.

Ulta Beauty (NASDAQ:ULTA)’s numbers are drastically down, another retailer victim of the virus. But they’ve done a makeover, and what I didn’t understand about how their business model would survive during the Coronavirus. I completely get it now.

Currently Ulta Beauty stock price is $193. They hit their 10-year high of $368.83 on July 17, 2019, and their 52-week low of $124.05 on March 18, 2020. We have another company whose earnings are expected to grow immensely (53.3% per year) along with decent revenue growth (12.1% per year) expected. Finally, when looking at company numbers, their earnings have grown 17.7% per year over the previous five years. Another company I see thriving once the virus is under wraps. And here’s where I got it wrong…

Ulta Beauty made a couple of key adjustments during COVID-19. One was developing curbside pickup. Because women who shop at Ulta Beauty know their products, know their selection, and have been using the same beauty products for years. One thing I learned about their business was how loyal their customers are to them. Certain beauticians have been working with them on a personal level for years, and the same goes for the salon department. Their customer care is phenomenal. And this will keep women shopping with them rather than finding another supplier online.

Ulta’s Beauty’s e-commerce has taken off. They’re up 100%. Through technology, you can take a photo of yourself, use their app to add different lip gloss or eye shadow to it, and the next thing you know a customer is buying new products. Ulta Beauty also has a unique Ultamate Rewards Program that provides customers with a more personalized experience through the use of AI and analytics.

Another thing I didn’t factor in when looking at Ulta Beauty was the boom of Zoom. Women want and need to look good when they are on camera. I get that now. The truth is that beauty makes people feel better, allows for stress-release, and provides the opportunity for people to take part in self-care and self-expression. Finally, Ulta Beauty’s diversified business model of many brands, salon services, and locations within local communities ought to position it to come out ahead post-pandemic.