Ulta Beauty, Inc. (NASDAQ: ULTA) has announced its strategic priorities to drive profitable growth and unveiled new long-term financial targets at its 2024 investor day. The company plans to open 200 net new stores over the next three years, increasing its long-term store target. Ulta Beauty also revealed a new $3 billion share repurchase authorization and reaffirmed its fiscal 2024 guidance.
The company's strategic framework focuses on four foundational areas: assortment, experience, access, and loyalty. Actioning against these focus areas, Ulta Beauty plans to accelerate new store openings, drive loyalty program growth to 50 million members by 2028, establish a leadership position in wellness, deepen guest engagement, drive product newness, enhance the immersive in-store experience, elevate digital engagement, and heighten omnichannel satisfaction.
Ulta Beauty has a history of returning excess capital to shareholders through an active share repurchase program. The company's new share repurchase authorization of $3.0 billion replaces the prior authorization implemented in March 2024.
The company's previously announced expectations for fiscal 2024 remain unchanged. Ulta Beauty plans to deliver net sales of $11.0 billion to $11.2 billion, with comparable sales projected to be between -2% to 0%. The company also anticipates opening 60-65 new stores, with a focus on operating margin, diluted earnings per share, share repurchases, interest income, effective tax rate, capital expenditures, and depreciation and amortization expense.
Looking ahead, Ulta Beauty has set new long-term financial targets for 2026 and beyond. The company aims for 4% to 6% net sales growth, mid‐single‐digit operating profit growth, targeting operating margins around 12% of net sales, and low double‐digit diluted EPS growth. Ulta Beauty's disciplined capital allocation priorities will continue to emphasize funding ongoing operations, reinvesting in the business to drive growth, and returning excess cash to shareholders through share repurchases.
Ulta Beauty remains confident in its future and excited about its long-term growth prospects. The company's investor meeting will be webcast live, with a replay available online for a period of six months.
About Ulta Beauty: Ulta Beauty is the largest specialty U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products, and salon services. The company operates 1,411 retail stores across 50 states and distributes its products through its website, which includes a collection of tips, tutorials, and social content. Today the company's shares have moved -2.3% to a price of $361.0. For more information, read the company's full 8-K submission here.
