Better than bare!
By: Alexis Gramera, Tiffany Potthast, & Chloe Smith
Fall 2016
Financial Comparison between EL & ULTA
BackgroundOn
Estee lauder
Estee Lauder Timeline
1946 Estee Lauder Inc established
1947 First department store account at Saks Fifth Avenue
1960 First international account in London
1964 Aramis, a line for men, is created
1981 Clinique products made available in the USSR
1994 MAC is acquired
1995 IPO of The Estée Lauder Companies Inc.
2000 Bumble and bumble is acquired
2010 Acquired Smashbox
BackgroundOn
ULTA
Ulta Beauty Timeline
1990 Ulta Salon, Cosmetics & Fragrance, Inc. Founded
2007 Company became publicly traded on NASDAQ
2008 A second distribution center is opened in Arizona
SWOT ANALYSIS ESTEE LAUDER
SWOT ANALYSIS ULTA
Estee Lauder
vsUlta
● Estee Lauder is a much bigger company○ Market
Capitalization○ Sales○ higher
Margins
● Ulta as a smaller company - operates more efficiently
Company Finances - 2016 ULTA EL
Earnings Revenue (in millions) 3,924.116 11,262.3
Net Income (in millions) 320.008 1,114.6
Gross Profit Margin 35.28% 80.79%
Earnings Per Share (EPS) 4.98 2.96
Stock Info
Closing Market Price 181.17 91.02
Price/Earnings (P/E) Ratio 36.38 30.75
Market Capitalization (in millions) 11,540.35 20,259.14
Winner = Ulta
Winner = Ulta
Winner = Ulta
Winner = Ulta
Winner = Ulta
Winner = Ulta
Winner = Split ULTA -
TurnoverEL - Margin
Winner = ESTEE LAUDER
Winner = ESTEE LAUDER
Organizational alternatives: Estee Lauder❖Greater emphasis
on MAC and similar product lines
❖Update workplace❖Creating an app
Organizational alternatives: ULTA
❖ Greater emphasis on men’s products
❖ Branch into fashion and accessories
❖ Expand locations internationally
Summary ❖ ULTA
➢ Smaller, leaner, a and much more efficient operating business with NO DEBT
❖ Estee Lauder ➢ Larger company➢ They also pay a dividend
Summary❖ BOTH companies are good at their business
➢ Comes down to what kind of company you want to invest in
❖ Growth (Capital Appreciation) – ULTA ➢ Risk involved, as they must continue to grow
or the stock price will go down❖ Dividend Stock – EL
➢ You buy them because of the strong stable income
Questions?
Works Cited"Estée Lauder Official Site." Estée Lauder Official Site. N.p., n.d. Web. 3 Oct. 2016.
"Estee Lauder Biography." Biography.com. Ed. Biography.com. N.p., 11 May 2015. Web. 20 Sept. 2016.
The Estee Lauder Companies Inc. (2015). Form 10-K 2015. Retrieved from SEC EDGAR. Website
Https://www.sec.gov/Archives/edgar/data/1001250/000110465914062259/a14- 14862_110k.htm
"Ulta Beauty | Investors | Company Overview." Ulta Beauty | Investors | Company Overview. N.p., n.d. Web. 22 Sept. 2016.
Ulta Salon, Cosmetics, & Fragrance, Inc. (2015). Form 10-K 2015. Retrieved from Ulta Beauty. Website
http://ir.ulta.com/phoenix.zhtml?c=213869&p=irol-sec