Ulta Beauty announced its long-term financial targets and strategic priorities at its 2024 Investor Day on October 16, 2024. The company plans to achieve 4% to 6% net sales growth and low double-digit diluted earnings per share growth for fiscal years 2026 and beyond. Operating profit growth is targeted at mid-single digits, with operating margins around 12% of net sales.
As part of its growth strategy, Ulta Beauty authorized a new $3 billion share buyback program and outlined plans to open 200 new stores over the next three years, aiming for a total of over 1,800 stores by 2028. This expansion is a key component of its strategy to reassert market leadership and drive profitable growth.
CEO Dave Kimbell acknowledged that 2024 has been more challenging than planned due to normalizing category growth, a volatile consumer backdrop, and increased competition in the prestige beauty segment. The company is focusing on new brand partnerships, loyalty program expansion, and personalized promotions to boost sales. Chief Merchandising Officer Monica Arnaudo highlighted an emphasis on exclusive products and a diverse brand mix, including over 40 exclusive brands and more than 65 brands with exclusive products.
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