Ulta Beauty plans 200 new store openings over three years
Ulta Beauty’s sights are set on the future following its 2024 Investor Day.
The beauty retailer laid out priorities to help drive profitable growth and long-term financial targets, which include opening 200 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, chief executive officer. “More than 30 years ago, Ulta Beauty was the original disruptor in beauty bringing All Things Beauty. All In One Place. While beauty has continued to expand and evolve, we remain true to our core purpose—we champion beauty for everyone, helping every guest discover their own possibilities through the power of 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 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.”
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Key areas of focus to drive profitable growth and market share leadership in the beauty and wellness space include:
- Assortment: Curating the best of all things beauty and wellness for all beauty enthusiasts;
- Experience: Fostering authentic, empowering human connections that inspire, delight and engage guests at every touchpoint;
- Access: Engaging our guests wherever they want to shop by expanding our reach through seamless and immersive omnichannel experiences; and
- Loyalty: Building lifelong loyalty and brand love through member growth and personalization.
Other goals set by the company include a target of having more than 1,800 store locations, driving growth in its loyalty program by expanding to 50 million members by 2028, establishing itself as a leader in wellness with an expanded assortment, and offer a roster of exclusive, emerging and established brands on its shelves.
“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, chief financial officer. “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.”
Financial goals outlined by the company include a 4% to 6% net sales growth, targeting operating margins around 12% of net sales and low double-digit diluted EPS growth.
