Beauty retailer Ulta Beauty recently revealed its plans to boost sales and regain market share following a first-quarter sales slowdown. With comparable sales up only 1.6% year over year, the company is implementing several initiatives to drive growth.
Ulta’s CEO, Dave Kimbell, admitted that market share has been challenged in recent quarters, particularly in the prestige beauty category. To address this, the company is focusing on strengthening assortment by introducing 25 new brands, accelerating social relevance through its creator network, enhancing the digital consumer experience, leveraging its loyalty program, and evolving its promotional strategies.
Moreover, Ulta is expanding its partnership with DoorDash for same-day deliveries and will be emphasizing its mobile app adoption, which accounted for 57% of e-commerce sales in the quarter. Kimbell also announced plans to introduce new gamification platforms and marketing technology to personalize the shopping experience for customers.
Although Ulta’s stock rose by 11% in extended trading, the company did lower its full-year guidance. Ulta now expects net sales of $11.5 billion to $11.6 billion and comparable sales between 2% to 3%, down from previous estimates. Similarly, the company revised its earnings per share guidance to a range of $25.20 to $26.
Beauty brands like e.l.f. have reported strong results, indicating a resilient beauty industry amidst a consumer pullback due to higher costs. Meanwhile, Oddity Tech, an AI-powered beauty company, highlighted a shift in consumer behavior towards online shopping and high-efficiency products.
As Ulta charts its course for growth and market share recapture, analysts have slightly cooled on the company’s outlook. Despite this, experts believe that the beauty category will continue to experience significant growth as consumers prioritize beauty products. Ulta’s market value currently stands at around $18.5 billion, with shares closing at $385.58 per share.
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