Ulta Beauty : 2020 ESG Report

leaving a positive

legacy for our world

2020 ENVIRONMENTAL, SOCIAL & GOVERNANCE REPORT

We use the

to lives, strengthen communities and enhance the world around us.

TABLE OF	CEO Message	4	Community	23
Introduction	5	Environment	28
CONTENTS
People	9	SASB Index	33
the possibilities are beautiful.	Product	16
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®

OUR FOOTPRINT (as of 10/31/2020)

FISCAL 2019 NET SALES BY CATEGORY

1,262	6	13.2 million	25,000+
stores	distribution	total store	products in store XX%
	centers	square footage
500+	$7.4 billion	50	35,000+
brands offered	in fiscal 2019	states	associates
	net sales

Cosmetics 50%

Skincare, bath and fragrance 22%

Haircare products and styling tools 19%

Services 5% Other 4%

4%

5%

19%

50%

22%

the possibilities are beautiful.
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™

CEO MESSAGE

What a positive legacy means to us

Over the past 30 years, Ulta Beauty has earned our reputation as the most admired beauty retailer by our guests, associates and investors. And after a year like 2020, it's worth reflecting on our company's role at this moment in history. While our lives have been disrupted in so many ways, we believe in the power and possibility of beauty more than ever before. During this uncertain time, beauty provides happiness, hope and renewal, helping us feel a little bit like ourselves again.

But Ulta Beauty aspires to be known not only for providing all things beauty to our guests. We also want to leave a positive legacy on our world through environmental and social impacts. Though we are in the early stages of our sustainability journey and environmental, social and governance (ESG) disclosure, operating our business in a responsible manner and doing the right thing for one another has always been part of who we are as an organization. Over the past year, we have worked to bring together our ongoing efforts and track our achievements across four focus areas-People, Product, Community and the Environment-so we can more formally share our ESG strategy with you. We are pleased to share our progress in each of these areas in this inaugural ESG report.

One of the accomplishments we are extremely proud of is the launch of Conscious Beauty at Ulta Beauty™, a first-of-its-kind initiative that will inspire more informed, conscious product choices for guests, their loved ones and the environment. Through this program, we will provide transparency around brands that use clean ingredients in their products, as well as whose products are cruelty free, vegan, use sustainable packaging and have a positive impact in communities-all practices that we know matter to our guests. With the introduction of Conscious Beauty at Ulta Beauty™, we also announced a sustainable packaging commitment that will align with other company initiatives to conserve resources and protect the environment.

the possibilities are beautiful.™

Another point of pride is our long tradition of being a diversity-forward company. In my seven years as CEO, we've worked hard to represent the wonderful diversity of our communities in everything we do, from our marketing communications to our brand partnerships and our team of associates. As the events of 2020 showed us, systemic racism is pervasive in so many aspects of our society. While we have long been aware of and worked to counteract this harmful legacy, broader awareness and calls to action in 2020 have sharpened our focus on these issues. Now, we're working to accelerate our actions in this space and continue to be an authentic leader of diversity and inclusion in corporate America.

Improving the lives of women and families in our communities is another enduring focus. Reflecting this commitment, as of the end of October 2020, we raised more than $37 million to benefit life-changing research at the Breast Cancer Research Foundation®, which we have supported for more than a decade, and donated more than $1 million to support the efforts of Save the Children® in rural communities.

The COVID-19 pandemic has brought challenges and tragedies unlike any we've ever faced. Throughout this crisis, Ulta Beauty associates, especially in our stores and distribution centers, have continued to show incredible agility, creativity and commitment to the health and safety of our guests and one another. I want to thank my leadership team and all of our associates for not only caring for themselves and each other this year, but also helping shape the positive legacy that Ulta Beauty will leave on the world well into the future. We look forward to continuing to update you on our progress.

Mary Dillon

Chief Executive Officer

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