Ulta Beauty Reveals Strategy for 'Transitional' 2024-2026: Store Openings, Increased Loyalty & More

Ulta Beauty's exposure to mass beauty and increased competition from ever-multiplying beauty outlets—two trends that have benefited rival Sephora/Sephora at Kohl's—have challenged the retailer even as the general U.S. beauty market has remained resilient.
Ulta Beauty's exposure to mass beauty and increased competition from ever-multiplying beauty outlets—two trends that have benefited rival Sephora/Sephora at Kohl's—have challenged the retailer even as the general U.S. beauty market has remained resilient.
Eric BVD at Adobe Strock

Ulta Beauty's exposure to mass beauty and increased competition from ever-multiplying beauty outlets—two trends that have benefited rival Sephora/Sephora at Kohl's—have challenged the retailer even as the general U.S. beauty market has remained resilient. Calling the 2024-2025 era "transitional," the retailer is focused on three key strategies to drive growth: store openings, increased shopper loyalty and share buy-backs

Ulta Beauty's Store Opening Timeline

Ulta plans to open 60-65 net new stores in fiscal 2024.

It also plans to open 200 net new stores over the next three years.

In the long term, Ulta plans to speed up the rate of store openings, "targeting 1,800+ stores over the long-term," per the retailer. 

Ulta's Loyalty Strategy

Ulta Beauty is also focused on customer loyalty, which will entail:

  • achieving 50 million loyalty program members by 2028
  • expanding its assortment with exclusives, new emerging and established brand partnerships, and an expansion of the Ulta Beauty collection
  • enhancing omnichannel retail in-store (investing in store associates, stylists, unique services and events) and online (streamlined and personalized shopping)

Ulta's Share Repurchase Plan

The company’s board of directors has approved a new share repurchase authorization of $3.0 billion.

Ulta Beauty's Net Sales Forecast: 2024 and Beyond

The company has reaffirmed that it is on track for fiscal 2024 net sales of $11.0-11.2 billion, representing flat results to a 2% year-over-year decline.

Looking ahead to 2026, Ulta Beauty is targeting 4-6% net sales growth, with operating profit growth rising in the mid single digits and operating margins of about 12% of net sales.

Ulta Beauty's Transitional Moment

“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,” says 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.”

“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,” says 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 purposewe 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.”



More in Brick and Mortar