Ulta shooting for 100 new stores a year

Ulta Salon, Cosmetics & Fragrance Inc., the chain of 283 beauty stores in 34 states, plans to open about 100 stores a year starting in 2010, with a goal of reaching 1,000 U.S. locations, Chief Executive Officer Lyn Kirby said.

"We are absolutely a fast-growth retailer," Kirby said in an interview Sept. 18 in New York. "We've been very planful in the acceleration of the number of stores we do each year."

Ulta, based in Bolingbrook, will have 311 stores by the end of this year and will open 81 more in 2009, Kirby said. The company sells cosmetics, fragrances, hair-care products and styling tools, and has full-service salons in its stores.

The company has cash and a $200 million credit facility to fund the growth, Kirby said. "We are in a very fortunate position, given the economic environment that we're in, to be able to continue to fund the growth ahead," she said.

Ulta reported a 24 percent boost in second-quarter sales Sept. 4, to $249.1 million. The company has tried to appeal to cash-strapped consumers with incentives for buying, including gifts with purchases, according to Kirby.

"We're in the category of affordable indulgence," she said. "You might have to forego the $500 pair of shoes, but you can still indulge yourself with an $80 bottle of fragrance, or a $50 eye cream, or a $30 lipstick."