Is Ulta Beauty Stock Halal?

Is Ulta Beauty Stock Halal?

How much of Ulta Beauty’s revenue comes from haram?

Ulta operates as a beauty retailer in the United States, offering cosmetics, fragrance, skin care products, hair care products, and salon services.

Practical Islamic Finance concludes:

None of Ulta’s revenue comes from anything inherently haram.

Does Ulta Beauty rely on interest to operate?

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What is Ulta Beauty’s Environmental, Social, and Governance (ESG) impact?

Environment

According to Ulta’s 2020 ESG Report, the company has reduced its electricity usage by 5 million kWh since 2016, equivalent to avoiding 3,600 metric tons of GHG emissions.

In addition, in 2019, Ulta purchased more than 22,000 megawatt-hours of wind energy through renewable energy credits, representing 7% of the company’s total annual electricity usage.

Social

According to Ulta’s 2020 ESG Report, the company has been partnered with the Breast Cancer Research Foundation since 2009, raising over $37 million since the start of its partnership.  

Ulta has a Glassdoor rating of 3.5 out of 5.0 from over 7,000 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

Ulta has a net positive ESG impact.

Comfort Rating

From Ulta’s business, financial, and ESG reviews, Practical Islamic Finance rates Ulta stock as: 

Comfortable to invest in from a halal perspective.

Sources

Ulta Beauty Reviews 

Ulta 2020 ESG Report 

Ulta Beauty 2021 10-K

Ulta Q2 2021 10-Q 

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