I have been holding this stock for about 18 months and have learned a few things about the company. It appears the people who do know what the earnings were going to be (directors) recently dumped 100% of their stock holdings. That sure tells me something. Management is doing a few things to inflate the earnings in the short run. First as of tomorrow their new health care plan takes effect many people who used to have coverage will lose it saving the company that expense. Although no managers will lose their coverage. Also if you have heard of the good ol boys type network well they have that but most of the managers are women who cover up mistakes made by one another. They are putting off much needed repairs in many of their salons but on the plus side have also renegotiated some of their leases while the real estate market is down. I know someone who used to work there and their "direction" is to push out many of their top hairstylists and hire new less qualified people to focus on hard selling products to anyone who walks through the door. The top management is out of touch with the employees that work in the stores and do not want to address problems. Despite many unneeded and sometimes poor managers this company continues to make money. They do this with a very high markup on products. The industry standard for beauty products is to double the price of the product and put it on the shelf. So when you see Ulta having a 20% off coupon they are still making an 60% ($10 product + $10 markup - $4 off) profit on most of their stuff. If you are interested in buying this stock I would suggest visiting your local Ulta and seeing how it looks and how you are treated. As of now for me it is a hold at least until another competing company comes out and severely diminishes Ulta's market share.