Ulta Beauty’s (NASDAQ: ULTA) stock fell Tuesday following the announcement of its long-term financial goals and strategic priorities.
“Reflecting our understanding about how the consumer and beauty category are evolving, we have refreshed our strategic framework, and we are excited to share our vision for Ulta Beauty’s future. We have a long record of disruption, creativity and success, and we intend to build on this foundation and continue to lead the beauty category, seamlessly connecting physical and digital channels, expanding our market share, and increasing member loyalty,” said Dave Kimbell, chief executive officer.
Ulta believes total net sales will increase anywhere from 5% to 7% for fiscal 2022 through 2024. Furthermore, within a filing, Ulta revealed it expected comparable-store sales to surge between 3% and 5% per year. The company hopes to open about 50 new locations annually.
“We are optimistic about the opportunities ahead and believe the power of the beauty category, paired with our proven business model, experienced leadership team, and values-based culture, positions Ulta Beauty to continue to deliver long-term value for shareholders,” Kimbell said.
Earnings are expected to increase within the low double-digits, meanwhile, operating profits are anticipated to be anywhere from 13% and 14%. Ulta has proposed a multi-year cost savings goal of USD150 Million to USD200 Million as a means to bankroll investments for growth opportunities.
“This three-year plan appropriately has a bit more modest of an outlook than the previous three-year plan given in 2018, as the company is 21% bigger today than at that time,” said D. A. Davidson analyst Michael Baker in a research note Tuesday.