Ulta Beauty plans to open 200 stores over 3 years as part of growth strategy
Ulta Beauty announced on Wednesday that it plans to open 200 new stores over a three-year period as part of the company’s strategic growth plan.
The beauty retailer said Wednesday that it will step up the pace of its openings, targeting a 1,800-plus store footprint "over the long-term."
Ulta currently has more than 1,400 retail stores nationwide. It also has several hundred Ulta Beauty at Target locations.
The company unveiled its expansion plans in the morning, before the start of its investor day on Wednesday.
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Ulta maintained its guidance for fiscal year 2024 and expects a total of 60-65 net new stores, 40-45 remodel and relocation projects, and net sales of $11 billion to $11.2 billion. It completed 26 net new store openings over the first half of fiscal 2024, according to its August earnings release.
The accelerated new store openings are part of Ulta broader strategy to "drive profitable growth and market share leadership" through various assortment, experience, access and loyalty initiatives, according to the company.
The retailer is also looking to boost its loyalty program membership count to 50 million by 2028; "enhance the immersive in-store experience" through staff, service and event investments; and continue to build on its product offerings, among other measures, it said.
Ulta said on Wednesday it now aims to achieve 4% to 6% net sales growth and "low double-digit" diluted earnings-per-share growth for 2026 "and beyond." It is also targeting operating margins around 12% of net sales.
"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," CFO Paula Oyibo said in a statement.
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Ulta executives said during its second-quarter earnings call in August that it had been contending with growth in beauty "normalizing" and more cautious consumers, factors that weighed on its quarterly comparable store transactions.