Latest news with #KeciaSteelman
Yahoo
4 days ago
- Business
- Yahoo
Ulta Beauty, Target Ending Shop-in-shop Partnership by 2026
It's over. After months of speculation, Ulta Beauty and Target Corp. are breaking up. More from WWD Ulta Beauty CEO Kecia Steelman Named to Breast Cancer Research Foundation Board EXCLUSIVE: Gwyneth Paltrow's Goop Doubles Down on Beauty, Expands Into Ulta Stores Nationwide EXCLUSIVE: Lili Reinhart's Skin Care Brand Personal Day Set to Enter Ulta Beauty, Marking Its Inaugural Move Into Retail The two publicly listed companies said they have mutually agreed not to renew the Ulta Beauty at Target shop-in-shop partnership when the current agreement concludes in August 2026. Until then, the Ulta Beauty at Target experience will continue in Target stores and on The shop-in-shop debuted in 2021 to much fanfare, but it has struggled in recent years with intense competition from Sephora's partnership with Kohl's and more recently Amazon's push into prestige beauty. In its most recent earnings call, Kohl's said it will continue to invest in Sephora, a key growth category for the retailer, opening 105 Sephora small format shops in the spring, which completes the full chain rollout of Sephora at Kohl's. 'Sephora has been a huge success for Kohl's, and in just four years, we successfully launched over 1,100 Sephora at Kohl's shops and built nearly a $2 billion beauty business. In Q1, Sephora delivered another quarter of positive sales, with net sales up 6 percent and comparable sales up 1 percent,' said Jill Timm, Kohl's chief financial officer, in a May earnings call. While Kecia Steelman, Ulta Beauty's chief executive officer and president, has been less vocal regarding the competition, her predecessor Dave Kimbell had described it as fierce. 'There have been more than a thousand new points of distribution in prestige…so the competitive environment continues to intensify,' Kimbell said last year. 'I've been with this company for 10 years. I've seen a lot of different versions of competition and it's always been competitive. But there's certainly some dynamics going on right now that are somewhat unique.' The Ulta shop had expanded to 610 Target stores, each occupying approximately 1,000 square feet. Ulta and Target were planning on around 800, but earlier this year they hit pause and ultimately decided to end the partnership. 'Our partnership with Target was one of many unique ways we have brought the power of beauty to guests nationwide,' said Amiee Bayer-Thomas, chief retail officer at Ulta Beauty. 'As we continue to execute our Ulta Beauty Unleashed plans, we're confident our wide-ranging assortment, expert services and inspiring in-store experiences will reinforce our leadership in beauty and define the next chapter of our brand.' 'We're proud of our shared success with Ulta Beauty and the experience we've delivered together,' added Rick Gomez, executive vice president and chief commercial officer of Target. 'We look forward to what's ahead and remain committed to offering the beauty experience consumers have come to expect from Target — one centered on an exciting mix of beauty brands with continuous newness, all at an unbeatable value.' Ashley Helgans, an analyst at Jefferies, said while not a major financial driver for Ulta, the collaboration helped margins and brand reach. She believes Ulta will refocus on broader brand strategy, including digital and international initiatives. Indeed, Ulta will be launching an online marketplace later this year, after acquiring British beauty retailer Space NK. It is also bringing Ulta to Mexico and the Middle East later this year. As for Target, it's been a trying time for the retailer, which has seen its stock drop by more than 24 percent over the last five years and is due for leadership change. Brian Cornell, who has led the retailer as CEO for 11 years, committed in September 2022 to stay at the helm for 'approximately three more years,' putting him on track to leave soon. CEO switch overs all spur change and can bring their own complications, especially for a business as large as Target. During his tenure, Cornell has been busy, ramping up same-day delivery at Target and linking up with big names through the Ulta push and other brand hook ups, like the one that brought Levi's famed 501 jeans to its stores. He also navigated the chain through the pandemic, but has been caught up in some culture war disputes — from the Pride Month apparel that was pulled after some pushback to the decision to pivot away from diversity, equity and inclusion initiatives in favor of a 'belonging' strategy. Along the way, the business wavered and the much larger Amazon and Walmart gained ground. Target's comparable sales shrank by 3.7 percent in 2023 and bounced back only somewhat last year with a 0.1 percent gain before falling again in the first quarter. Beauty has been a relative bright spot, with the category's total sales rising 5.1 percent to $13.2 billion last year. In March, Gomez told investors that Target's beauty business had nearly doubled since 2019. 'Amazing in-store presentation and a great digital experience, our partnership with Ulta Beauty and our assortment that includes some of the leading brands in the industry have combined to make Target an undisputed beauty destination,' Gomez said. 'We are not resting on our laurels. That's why we just announced the addition of 2,000 new products to our assortment, 90 percent of which will be priced under $20. That includes an expansion in our offering in brands like EOS, Knicks, Native, Elodea, Camille Rose, and the addition of nearly 50 new brands like Bubble and Days, plus more newness within Ulta Beauty at Target to further cement Target status as a go-to for all things beauty.' The Ulta-shaped hole in Target's beauty department now has the retailer shaking up another part of its business in a world that's already moving faster by the day — from the latest tariff news to fresh worries over consumer economics. Jefferies' Helgans predicted that Target's focus on beauty could make it a big rival to Ulta. 'Many of the brands featured within the shop and shop are sold on Amazon, and Ulta has noted brands with increasing points of distribution. We see the possibility of Target becoming a greater competitor to Ulta as they continue to build out and improve their own beauty assortment, and currently have a 74 percent store overlap. We believe that Target has been able to leverage its learnings from the Ulta partnership to enhance its beauty offering across its fleet, not just stores with Ulta.' Best of WWD Which Celebrity Brands Are Next for a Major Deal? Lady Gaga, Beyonce and More Possible Contenders for the Next Corporate Prize The Best Makeup Looks in Golden Globes History A Look Back at Golden Globes Best Makeup on the Red Carpet, From Megan Fox to Sophia Loren [PHOTOS]
Yahoo
12-07-2025
- Business
- Yahoo
US retailer Ulta Beauty enters UK market with Space NK acquisition
US beauty retailer Ulta Beauty has completed the acquisition of British beauty retailer Space NK from Manzanita Capital, marking its entry into the UK market. The financial details of the transaction were not made public. The acquisition was financed using Ulta Beauty's available cash and its existing credit facility. This deal is not anticipated to significantly affect Ulta Beauty's financial outcomes for fiscal 2025 and will not interfere with its ongoing capital allocation initiatives, such as its share repurchase programme. Ulta Beauty CEO and president Kecia Steelman stated: 'We are excited to enter the UK market via the Space NK banner. 'International expansion is an integral part of our Ulta Beauty Unleashed plan, and the acquisition of Space NK offers a unique and strategically compelling opportunity to enter the growing UK market with a successful and growing brand. Along with our initiatives in Mexico and the Middle East, we are creating a broader platform for Ulta Beauty to unlock long-term, profitable growth.' Space NK has 83 stores across the UK and Ireland as well as its online platform. Post acquisition, Space NK will function as an independent subsidiary under Ulta Beauty and will continue under the leadership of its current management team, including CEO Andy Lightfoot. Lightfoot stated: 'We have long respected Ulta Beauty as the leading speciality beauty retailer in the US. We are energised and excited by the opportunity to join Ulta Beauty and benefit from its scale, brand relationships and resources to further fuel our mission to serve beauty-obsessed consumers through expertise and innovation.' Goldman Sachs has been appointed as the exclusive financial advisor to Ulta Beauty for this transaction, with Latham & Watkins providing legal counsel. Raymond James is acting as the exclusive financial advisor to Space NK, with Bryan Cave Leighton Paisner offering legal services to both Manzanita Capital and Space NK. In October 2024, Ulta Beauty revealed plans to open 200 new stores by 2027. "US retailer Ulta Beauty enters UK market with Space NK acquisition" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
11-07-2025
- Business
- Yahoo
Ulta Beauty Acquires Space NK as It Speeds Up International Expansion
Ulta Beauty's new chief executive officer Kecia Steelman continues to make significant moves, this time snapping up Space NK from investment firm Manzanita Capital. Terms of the deal were not disclosed apart from that the purchase was funded with cash on hand and capacity under Ulta's existing credit facility. More from WWD Laura Slatkin Steps Back From Day-to-day Operations at Nest New York The Best Prime Day Alternative Sales to Shop Now for Editor-Approved Style Deals The Celeb-Loved Hourglass Tubing Mascara Now Comes in a Surprisingly Versatile Brown Shade Press reports from last year suggested Manzanita was searching for a deal valued between 300 million pounds and 400 million pounds. Space NK, which has 83 stores in the U.K. and Ireland and turnover of 196.5 million pounds in 2024, will operate as a stand-alone subsidiary of Ulta Beauty and will continue to be led by its existing management team, including CEO Andy Lightfoot. 'Today's announcement marks an exciting step forward for Ulta Beauty's global expansion efforts, adding the U.K. market to our existing planned openings in Mexico and the Middle East later this year,' said Steelman. 'Space NK is a beloved brand with a strong operating model and customer loyalty, and we couldn't be more thrilled to welcome the brand into the Ulta Beauty family.' Space NK was founded in Covent Garden in 1993 by Nicky Kinnaird as a glossy destination for niche, international brands — many of them skin care — that were difficult to find in the U.K. It had been part of Manzanita Capital for 23 years. Reports that the firm was trying to sell Space NK emerged in April 2024. It previously tried to off-load it in 2018, before deciding to pull the retailer off the market. Bill Fisher, CEO and founder of Manzanita Capital, said: 'I have every confidence that Ulta Beauty and this terrific management team will take Space NK to new heights.' Lightfoot added that he was excited by the opportunity to join Ulta Beauty and 'benefit from its scale, brand relationships and resources.' 'This acquisition sets both companies on a path to further success and importantly, enables us to reach more beauty enthusiasts throughout the world at scale. As a collective force of talented, passionate teams, I'm confident we will take Space NK to new heights,' he continued. The U.S. wholesale division of Space NK, which entails roughly 600 points of distribution across Bloomingdale's, Nordstrom, Nordstrom Rack, Hudson's Bay and the company's shop-in-shop collaboration with Walmart and Beauty SpaceNK, was acquired by PCA Companies in June 2024. Since taking the reins as CEO of Ulta at the beginning of this year, Steelman has been executing its international expansion. Later this year Ulta will debut in Mexico through a joint venture with Axo, before arriving in the Middle East via a licensing agreement with Alshaya Group. In the Middle East, the first locations will be in Dubai and Kuwait City, with one store in each location to begin with, although the strategy is to expand quickly. It's the same story in Mexico. 'We're getting ready to launch in the back half of 2025 for Mexico, and it will probably be in the later half of the year for the Middle East. For Mexico, it's a joint venture with Axo. We're very excited about our partnership. The teams are working very well together. We believe we can get 10 stores open in a pretty short period of time,' Steelman said during an April interview with WWD. 'In regards to the Middle East, that's actually a licensed agreement that we're doing with Alshaya Group. We've talked to Alshaya Group for quite some time, and feel like they're a fantastic partner for us to bring our brand to life in the Middle East.' Neil Saunders, managing director of GlobalData, said: 'The Space NK brand is solid, so Ulta will not have much re-engineering to do. As such, it can focus its time and resources on expansion, which will now likely be more aggressive. There may also be some synergistic savings that accrue over time, although it will be important for Ulta to maintain the character and distinctiveness of Space NK.' Thursday's announcement that Ulta is acquiring Spake NK is yet another sign that beauty M&A is picking up after a lengthy slowdown. Other recent deals include L'Oréal snapping up Medik8 and Color Wow, E.l.f. Beauty buying Hailey Bieber's Rhode and Unilever's purchase of Dr. Squatch. Other beauty brands that have been in the market for some time will no doubt be hoping that this thawing means they will soon have some success. Best of WWD Which Celebrity Brands Are Next for a Major Deal? Lady Gaga, Beyonce and More Possible Contenders for the Next Corporate Prize The Best Makeup Looks in Golden Globes History A Look Back at Golden Globes Best Makeup on the Red Carpet, From Megan Fox to Sophia Loren [PHOTOS] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion Network
10-07-2025
- Business
- Fashion Network
Ulta Beauty is new Space NK owner, purchase gives it instant scale in UK market
It's official. American giant Ulta Beauty is the new owner of British premium chain Space NK. The companies announced the news on Thursday saying Ulta acquired the business from long-term Space NK owner Manzanita Capital. Financial terms of the cash transaction weren't disclosed. But there was speculation that it would have been higher than £300 million ($408 million), reflecting the success enjoyed by Space NK in recent periods. The retailer sells a wide range of higher-end labels through its 83 UK and Ireland stores, and online, and will continue to do so as a standalone subsidiary of Ulta. It will also continue to be led by its existing management team under Space NK CEO Andy Lightfoot. For Ulta, it's not just an acquisition but an entry point into the strong UK beauty market. 'We are excited to enter the UK via the Space NK banner,' said Kecia Steelman, president and CEO of the American firm. 'International expansion is an integral part of our Ulta Beauty Unleashed plan, and the acquisition of Space NK offers a unique and strategically compelling opportunity to enter the growing UK market with a successful and growing brand. Along with our initiatives in Mexico and the Middle East, we are creating a broader platform for Ulta Beauty to unlock long-term, profitable growth.' Steelman also said Space NK's management team, 'with the backing of Manzanita Capital, has done an excellent job building a differentiated beauty experience that inspires consumers through tailored product mixes. We look forward to working with the team to support their continued growth and success'. Manzanita's CEO and founder Bill Fisher added that Space NK has been 'an important part' of its business for the past 23 years. 'The acquisition of Space NK from [founder] Nicky Kinnaird was a key influence in developing Manzanita's unique expertise in selecting and nurturing luxury and niche premium beauty and perfume brands. I have every confidence that Ulta Beauty and this terrific management team will take Space NK to new heights.' Meanwhile Lightfoot highlighted Ulta's powerful position in the US market and said the UK firm will 'benefit from its scale, brand relationships and resources to further fuel our mission to serve beauty obsessed consumers through expertise and innovation'.
Business Wire
10-07-2025
- Business
- Business Wire
Ulta Beauty Announces Acquisition of Leading British Beauty Retailer Space NK from Manzanita Capital
BOLINGBROOK, Ill.--(BUSINESS WIRE)--Ulta Beauty, Inc. (NASDAQ: ULTA) today announced that it has acquired Space NK Limited, a leading British beauty retailer, from Manzanita Capital, a beauty sector specialist investor with a long-term investment horizon. Financial terms of the transaction were not disclosed. Space NK is a curator of some of the world's most innovative beauty brands and a go-to destination for beauty discovery in its 83 stores in the UK and Ireland and online. Space NK will operate as a standalone subsidiary of Ulta Beauty and will continue to be led by its existing management team, including Space NK chief executive officer Andy Lightfoot. 'We are excited to enter the UK market via the Space NK banner,' said Kecia Steelman, president and chief executive officer of Ulta Beauty. 'International expansion is an integral part of our Ulta Beauty Unleashed plan, and the acquisition of Space NK offers a unique and strategically compelling opportunity to enter the growing UK market with a successful and growing brand. Along with our initiatives in Mexico and the Middle East, we are creating a broader platform for Ulta Beauty to unlock long-term, profitable growth.' 'Space NK's management team, with the backing of Manzanita Capital, has done an excellent job building a differentiated beauty experience that inspires consumers through tailored product mixes. We look forward to working with the Space NK team to support their continued growth and success,' continued Steelman. Bill Fisher, CEO and founder of Manzanita Capital, commented 'Space NK has been an important part of Manzanita Capital for the past 23 years. The acquisition of Space NK from Nicky Kinnaird was a key influence in developing Manzanita's unique expertise in selecting and nurturing luxury and niche premium beauty and perfume brands.' 'I have every confidence that Ulta Beauty and this terrific management team will take Space NK to new heights,' continued Fisher. 'We have long respected Ulta Beauty as the leading specialty beauty retailer in the U.S. We are energized and excited by the opportunity to join Ulta Beauty and benefit from its scale, brand relationships and resources to further fuel our mission to serve beauty obsessed consumers through expertise and innovation,' said Andy Lightfoot. The purchase of Space NK was funded with cash on hand and capacity under Ulta Beauty's existing credit facility. The acquisition is not expected to be material to Ulta Beauty's fiscal 2025 financial results and will not impact execution of its capital allocation priorities, including its share repurchase program. Goldman Sachs is serving as exclusive financial advisor to Ulta Beauty, and Latham & Watkins is serving as legal counsel. Raymond James is serving as exclusive financial advisor to Space NK, and Bryan Cave Leighton Paisner LLP is serving as legal counsel to Manzanita Capital and Space NK. About Ulta Beauty At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful. Ulta Beauty is the largest specialty U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services. In 1990, the company reinvented the beauty retail experience by offering a new way to shop for beauty – bringing together All Things Beauty. All in One Place®. Today, Ulta Beauty operates 1,451 retail stores across 50 states and distributes products through its website, which includes a collection of tips, tutorials, and social content. For more information, visit About Space NK Space NK first opened in 1993 as a lifestyle retailer in Covent Garden, London. Today, Space NK is a unique destination for beauty discovery, operating 83 locations across the UK and Ireland along with its online platform. For more information, visit About Manzanita Capital Manzanita Capital is a specialist investor focused on developing luxury and premium beauty companies into enduring global brands. Unconstrained by strict investment horizons, its long-term perspective is backed by patient family capital. Some current and prior investments include Diptyque, D S & Durga, and Byredo. Forward‑Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which reflect Ulta Beauty's current views with respect to, among other things, future events and financial performance. These statements can be identified by the use of forward-looking words such as 'will', 'outlook,' 'believes,' 'expects,' 'plans,' 'estimates,' 'targets,' 'strategies' or other comparable words or the negative version of these words. The forward-looking statements in this press release include, among other things, statements regarding the anticipated benefits of the acquisition of Space NK and the future performance of the combined businesses. Any forward-looking statements contained in this press release are based upon Ulta Beauty's historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by Ulta Beauty or any other person that the future plans, estimates, targets, strategies or expectations contemplated by it will be achieved. Such forward-looking statements are subject to various risks and uncertainties, which include, without limitation: the possibility that Ulta Beauty will not realize the anticipated benefits of the acquisition of Space NK for any reason, including due to challenges with integration or achieving anticipated acquisition synergies; macroeconomic conditions, including inflation and elevated interest rates, as well as prior labor, transportation, and shipping cost pressures, have had, and may continue to have, a negative impact on Ulta Beauty's business, financial condition, profitability, and cash flows (including future uncertain impacts, especially when combined with increased tariffs); changes in the overall level of consumer spending and volatility in the economy, including as a result of macroeconomic conditions, tariffs, and geopolitical events; Ulta Beauty's ability to sustain its growth plans and successfully implement its long-range strategic and financial plan; the ability to execute Ulta Beauty's operational excellence priorities, including continuous improvement and supply chain optimization; Ulta Beauty's ability to gauge beauty trends and react to changing consumer preferences in a timely manner; the possibility that Ulta Beauty may be unable to compete effectively in Ulta Beauty's highly competitive markets; the possibility of significant interruptions in the operations of Ulta Beauty's distribution centers, fast fulfillment center, and market fulfillment centers; the possibility that cybersecurity or information security breaches and other disruptions could compromise Ulta Beauty's information or result in the unauthorized disclosure of confidential information; the possibility of material disruptions to Ulta Beauty's information systems, including its website and mobile applications; the failure to maintain satisfactory compliance with applicable privacy and data protection laws and regulations; changes in the good relationships Ulta Beauty has with its brand partners, its ability to continue to obtain sufficient merchandise from its brand partners, and/or its ability to continue to offer permanent or temporary exclusive products of its brand partners; Ulta Beauty's ability to effectively manage its inventory and protect against inventory shrink; changes in the wholesale cost of Ulta Beauty's products and/or interruptions at its brand partners' or third-party vendors' operations; epidemics, pandemics or natural disasters, which could negatively impact sales; the possibility that new store openings and existing locations may be impacted by developer or co-tenant issues; Ulta Beauty's ability to attract and retain key executive personnel; the impact of climate change on Ulta Beauty's business operations and/or supply chain; Ulta Beauty's ability to successfully execute its common stock repurchase program or implement future common stock repurchase programs; a decline in operating results which could lead to asset impairment and store closure charges; and other risk factors detailed in the company's public filings with the Securities and Exchange Commission (the SEC), including risk factors contained in its Annual Report on Form 10‑K for the fiscal year ended February 1, 2025, as such may be amended or supplemented in its subsequently filed Quarterly Reports on Form 10-Q.
