Dave Kimbell, chief executive officer, said,
“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. This plan will enable us to drive strong growth and capture greater market share in beauty and wellness. We have consistently delivered exceptional results over time, and we are well positioned to build on this record of profitable growth and shareholder value creation. We remain confident in and excited about the future of Ulta Beauty.”
The company announced plans to drive growth and market share leadership through four focus areas:
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Assortment: Curating the best beauty and wellness products for all beauty enthusiasts. -
Access: Engaging our guests wherever they want to shop by expanding our reach through seamless and immersive omnichannel experiences. -
Experience: Fostering authentic, empowering human connections that inspire, delight, and engage guests at every touchpoint. -
Loyalty: Building lifelong loyalty and brand love through member growth and personalization.
Ulta plans on opening over 1,800 new stores over the long term and enhancing its in-store experience by investing in key differentiators including store associates and stylists, distinct service offerings, and signature events. The retailer with also enhance its omnichannel satisfaction with a robust suite of offerings and increased speed to guests.
A key focus for the company will be driving its loyalty program to 50 million members by 2028. The retailer also aims to deepen guest engagement through community building and advanced personalization.
Ulta hopes to establish itself as a leader in wellness with an expanded assortment. Ulta will launch new products through a differentiated portfolio of exclusive, emerging, and established brands, including the Ulta Beauty Collection.
2024 Guidance
The company has not changed its expectations for fiscal year 2024; planning to deliver $11.0 to $11.2 billion in net sales.
Paula Oyibo, chief financial officer, said,
“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.”
Ulta Beauty aims for 4% to 6% net sales growth for 2026 with low double-digit diluted EPS growth.
The company’s board of directors has approved a new share repurchase authorization of $3.0 billion, which replaces the prior authorization implemented in March 2024.
Similar to the old plan, the company may repurchase outstanding shares of the company’s common stock from time to time through privately negotiated transactions or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934.
The new program has no expiration date but may be terminated by the Board at any time.
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