BOLINGBROOK, Ill. - Ulta Beauty, Inc. (NASDAQ: NASDAQ:ULTA) today announced ambitious growth plans and financial targets at its 2024 Investor Day, aiming to expand its retail footprint and bolster market share in the beauty and wellness sector. The company revealed plans to open over 200 new stores within the next three years, with a long-term goal of surpassing 1,800 locations.
The beauty retailer also announced a new $3 billion share repurchase authorization, replacing the previous program initiated in March 2024. This move underscores the company's commitment to returning value to shareholders, having already returned more than $6 billion through repurchases since 2014.
Ulta Beauty's strategic framework focuses on enhancing assortment, guest experience, access, and loyalty. These efforts include targeting a loyalty program membership of 50 million by 2028 and establishing a leadership position in wellness. The company aims to deepen guest engagement through community building and personalization, as well as to enhance the digital and in-store experience.
Despite the ambitious expansion, Ulta Beauty has reaffirmed its fiscal 2024 guidance, expecting net sales between $11.0 billion and $11.2 billion, with comparable sales ranging from -2% to 0%. The company anticipates opening 60-65 new stores and completing 40-45 remodel and relocation projects, targeting an operating margin of 12.7% to 13.0%.
Looking beyond 2024, Ulta Beauty forecasts a 4% to 6% net sales growth, mid-single-digit operating profit growth, and low double-digit diluted EPS growth for 2026 and beyond. The company's disciplined capital allocation strategy remains focused on funding operations, reinvesting in the business, and continuing share repurchases.
The investor meeting, which took place today from 8:30 a.m. to 12:00 p.m. Central Time, was webcast live and will be available for replay online.
This news article is based on a press release statement from Ulta Beauty, Inc.
In other recent news, ULTA Beauty has been the subject of multiple analyst ratings and price target adjustments. Evercore ISI maintained an Outperform rating, emphasizing ULTA's potential to manage competition and generate greater returns. Piper Sandler kept a Neutral rating, advising investors to hold positions due to a recent contraction in valuation. Baird reaffirmed an Outperform rating, acknowledging potential downside risks but also potential opportunities for value investors. DA Davidson reiterated a Buy rating, anticipating comprehensive updates on the company's operations at the upcoming analyst day. However, TD Cowen reduced its price target to $390, citing concerns over profit margins amid increasing competition. These recent developments reflect the diverse views of financial firms on ULTA Beauty's current market position and future prospects.
InvestingPro Insights
Ulta Beauty's ambitious growth plans and financial targets announced at its 2024 Investor Day are supported by several key financial metrics and insights from InvestingPro. The company's strong financial position is evident in its market capitalization of $17.41 billion and a P/E ratio of 14.7, suggesting a relatively attractive valuation compared to its growth prospects.
InvestingPro Tips highlight that Ulta Beauty operates with a moderate level of debt and its liquid assets exceed short-term obligations. This financial stability aligns well with the company's plans for expansion and its new $3 billion share repurchase authorization. The aggressive share buyback strategy mentioned in the article is further reinforced by an InvestingPro Tip indicating that management has been actively repurchasing shares.
The company's profitability is underscored by its impressive gross profit margin of 42.52% and operating income margin of 13.91% for the last twelve months. These figures support Ulta Beauty's ability to fund its ambitious growth plans while maintaining healthy margins.
While the article mentions Ulta Beauty's reaffirmed fiscal 2024 guidance with expected net sales between $11.0 billion and $11.2 billion, InvestingPro data shows that the company's revenue for the last twelve months stood at $11.32 billion, indicating a solid foundation for future growth.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. In fact, there are 16 more InvestingPro Tips available for Ulta Beauty, providing a deeper understanding of the company's financial health and market position.
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