Ulta Beauty: Will Its International Expansion Efforts Bear Fruit?

Ulta Beauty’s Q4 and fiscal 2023 results present an investment thesis focused on continued growth, strategic expansion, and platform transformation. Ulta Beauty carries forward a positive momentum with Q4 net sales recording an increase of 10.2% to $3.6 billion and fiscal year net sales bumping up by 9.8% to $11.2 billion. The company robustly exceeded its internal expectations in sales, operating margin, and EPS. Ulta Beauty’s strategic move of curating an assortment, enhancing marketing strategies, and incorporating new fulfillment and technology capabilities have catalyzed their sustainable growth. A significant achievement for the brand was a 2.5% increase in comparable sales backed by high single-digit growth from digital channels. This strategy also led to successful new member acquisition and reactivation.