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