Ulta Beauty hosted its 2024 Investor Day where management outlined Ulta Beauty’s strategic priorities to drive profitable growth and announced new long-term financial goals.
CEO Dave Kimbell said:
“The strategic priorities announced today strengthen our differentiation model, drive relevant innovation to meet the evolving needs of our guests, and position Ulta Beauty as a lifetime destination for beauty lovers. This plan will enable us to drive strong growth and capture greater market share in the beauty and wellness sector, where we have consistently achieved strong results over the years. We are well positioned to build on this track record of strong growth and shareholder value creation, and we remain confident and excited about Ulta Beauty’s future.”
The company announced plans to drive growth and market share leadership through four focus areas:
Assortment: We curate the best beauty and wellness products for all beauty lovers. Access: Extend your reach through seamless, immersive omnichannel experiences to engage your customers wherever they want to shop. Experience: Cultivate authentic, empowering relationships that inspire, delight and engage guests at every touchpoint. Loyalty: Build lifelong loyalty and brand love through member growth and personalization. Over time, Ulta plans to open more than 1,800 new stores and enhance the in-store experience by investing in key differentiators such as associates and stylists, unique service offerings and signature events. The retailer is also increasing omnichannel satisfaction with a robust product suite and increased speed of delivery to guests.
The company’s main focus is to expand 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 position itself as a leader in wellness by expanding its selection. Ulta launches new products through a differentiated portfolio of exclusive, emerging and established brands, including the Ulta Beauty Collection.
Guidance for 2024
The company has not changed its expectations for fiscal 2024. Net sales are expected to be between $11 billion and $11.2 billion.
Chief Financial Officer Paula Oyibo said:
“While we expect 2024 and 2025 to be a transition period as we operate through near-term category dynamics, over the long term we expect to deliver both profitable growth and compelling shareholder value.” We believe there are further opportunities to expand our leadership position.”
Ulta Beauty is targeting 4% to 6% net sales growth and low double-digit diluted EPS growth in 2026.
The company’s board of directors approved a new $3 billion stock repurchase authorization, replacing a previous authorization in March 2024.
Consistent with the Prior Plan, we may from time to time repurchase outstanding shares of our common stock through privately negotiated or open market transactions, including under a plan pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934. You can.
The new program does not have an expiration date, but may be terminated by the Board of Directors at any time.
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