Ulta Beauty Aims for 1,800+ Stores, 50 Million Loyalty Members by 2028

Ulta Beauty unveils ambitious growth plans as it targets new beauty shoppers. The company plans to open 200 new stores over the next three years as part of its strategy to drive profitable growth and gain market share. The nation's largest beauty retailer recently held its 2024 Investor Day event, where it shared its vision for "2026 and beyond".

Despite a recent slowdown in consumer spending that led to the company's first quarterly revenue and earnings misses since 2020, Ulta remains optimistic. CEO Dave Kimbell acknowledged the moderation in growth was "a bit earlier and a bit bigger" than anticipated but says the company is prepared.

"We came into the year expecting the category to moderate," Kimbell explained. "It has [had] several years of strong growth."

To reach its goals, Ulta plans to accelerate store openings to over 1,800 locations in the long-term, up from around 1,400 currently. COO Kecia Steelman said recent store openings have performed well, even with competition from rival Sephora.

Ulta is also aiming to grow its popular loyalty program to 50 million members by 2028 by appealing to new beauty shoppers. "Today, more men - particularly young men - are engaging in and passionate about beauty," Kimbell noted. "And we also see meaningful growth from younger generations."

CFO Paula Oyibo expects "2024 and 2025 will be transitional years" but sees "additional opportunity to expand our leadership position" over the long-term.

The retailer maintained its fiscal 2024 guidance, projecting 60 to 65 net new stores this year, and approved a new $3 billion share repurchase program.