Ulta Beauty has outlined a new set of strategic priorities to drive its growth and announced new long-term financial targets that include an acceleration of new store openings. With a target of 1,800+ total locations, the beauty retailer plans to open 200 net-new stores over the next three years.
“Ulta Beauty is a leader in a growing category with a proven model and substantial financial strength to invest and power our long-term growth,” said Dave Kimbell, CEO of Ulta Beauty in a statement. “The strategic priorities announced today are designed to amplify our differentiated model and drive relevant innovation to meet evolving guest needs, positioning Ulta Beauty as the destination for beauty enthusiasts for a lifetime.”
Other growth initiatives that will be announced by Ulta at its 2024 Investor Day today include plans to:
- Drive loyalty program growth to 50 million members by 2028 by reaching new segments of beauty shoppers;
- Establish a leadership position in wellness with an expanded assortment and elevated experience in that category;
- Deepen guest engagement through community-building and advanced personalization;
- Drive product newness through a differentiated portfolio of exclusive, emerging and established brands, including the private label Ulta Beauty Collection;
- Enhance the immersive in-store experience by investing in key differentiators, including its best-in-class store associates and stylists, distinct service offerings and signature events;
- Elevate digital engagement through continued innovation and streamlining of the shopping experience; and
- Heighten omnichannel satisfaction, meeting every guest where they are with a robust suite of offerings and increased speed to guest.
Ulta Anticipates Growth to Pick Up in 2025, 2026
The retailer also has maintained its guidance for fiscal 2024, which ends Feb. 3, 2025, with an anticipated $11 billion to $11.2 billion in net sales for the year. This would represent comparable sales of 0% to a 2% decrease from fiscal 2023. The retailer also plans to open 60 to 65 net-new stores this year, as well as remodel or relocate 40 to 45 other locations. In the long term, Ulta is targeting 4% to 6% net sales growth in 2026 and beyond.
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“Ulta Beauty is a market leader in a robust, healthy consumer category, and we have delivered strong and consistent profitable growth and shareholder value over time,” said Paula Oyibo, CFO of Ulta Beauty in a statement. “While we expect 2024 and 2025 will be transitional years as we manage through near-term category dynamics, over the long-term we see additional opportunity to expand our leadership position, delivering both profitable growth and compelling shareholder value.”
In recent months Ulta has been doubling down on its mental health awareness initiatives, including The Joy Project. The retailer also has rolled out a number of new in-store services, including packaging recycling, false eyelash application and product sampling kiosks, as well as announcing plans to expand to Mexico in 2025.