Ulta Beauty plans to open 400 new stores, hit 50M loyalty members
Ulta Beauty’s profitability strategy includes aggressive growth in store count and loyalty program size.
At its 2024 Investor Day event, the nation’s largest beauty retailer, which recently reported its first quarterly revenue and earnings per share misses since 2020, unveiled a strategy to drive profitable growth and market share in beauty and wellness that includes accelerating new store openings to reach a total of more than 1,800 over the long-term. Ulta currently has more than 1,400 locations mnationwide.
The retailer maintained its guidance for fiscal year 2024 and expects a total of 60 to 65 net new stores and 40-45 remodel and relocation projects.
In addition, Ulta Beauty seeks to increase loyalty program growth to 50 million members by 2028 by reaching new segments of beauty shoppers. The company, which is basing its strategic framework on four foundational focus areas:
- Assortment: Curating the best of beauty and wellness products;
- Experience: Fostering authentic, human connections that delight and engage customers at every touchpoint;
- Access: Engaging customers wherever they want to shop by expanding its reach through seamless and immersive omnichannel experiences; and
- Loyalty: Building lifelong loyalty and brand affiliation through loyalty member growth and personalization.
To meet these goals, in addition to opening new stores and building its loyalty program, Ulta Beauty plans an expanded ssortment and to drive product newness through a differentiated portfolio of exclusive, emerging and established brands, including Ulta Beauty Collection.
In addition, it plans to invest in key in-store experience differentiators including associates and stylists, distinct service offerings, and signature events. The retailer also plans to enhance its digital engagement and streamline the shopping experience and heighten omnichannel satisfaction with a suite of offerings and increased speed to customer.
[READ MORE: Ulta Beauty extends retail media network with in-store kiosks]
New share repurchase authorization
On Oct. 15, 2024, the company’s board of directors approved a new share repurchase authorization of $3 billion, which replaces a prior authorization implemented in March 2024.
Under the new program, as under the previous program, the company may repurchase outstanding shares of its common stock from time to time through privately negotiated transactions or open market transactions. The new program has no expiration date but may be terminated by the board at any time.
Fiscal 2024 guidance
Ulta Beauty reiterated its guidance for fiscal year 2024 financial performance, including net sales of $11 to $11.2 billion, same-store sales growth from -2% to flat, 60-65 net new stores and 40-45 store remodel and relocation projects.
"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. "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 remain confident in and excited about the future of Ulta Beauty."
Ulta Beauty is the largest U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services, operating more than 1,400 retail stores across 50 states and also distributing its products through its website.
