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Ulta’s comparable store sales — the sales for stores open in the last 14 months, plus e-commerce sales — increased 2.9 per cent year-on-year. Steelman said e-commerce sales success was down to its app usage and engagement among customers (more than 60 per cent of e-commerce sales are made through the app). By category, fragrance sales were up 11 per cent, compared with the same period a year prior, skincare and wellness increased 25 per cent, while services (such as hair salons) were flat, contributing 4 per cent in net sales. Haircare sales fell 1 per cent year-on-year to 18 per cent, and cosmetics dropped 2 per cent to 40 per cent for the quarter. On the investor call, Steelman highlighted fragrance as the retailer’s strongest performing category, driven by newness in women’s and gender neutral fragrance brands as well as the likes of XO Khloé by Khloé Kardashian, Noise, Valentino and Billie Eilish.Officials Malice Cowardice Disservice Prejudice Injustice Tee Shirt
The skincare and wellness category saw growth in bodycare, suncare and wellness, with new brands like Tatcha, Naturium and Inua driving consumer spending. Interest in Sol de Janeiro and Touchland, the trending hand sanitiser brand, also continues to excite consumers in-store. However, Steelman said that skincare alone is proving to be a challenge; its prestige skincare category was flat for the quarter, while mass skincare decreased modestly. Fuelling the haircare category were haircare tools, mass haircare (a portfolio including Dyson, Shark beauty and Olaplex) and the “much anticipated [retail] debut of Beyoncé’s Cecred haircare line”, Steelman added. Like with many of the larger beauty players, such as Coty and Estée Lauder Companies (ELC), makeup continues to face headwinds for the retailer as it grapples with dupes and consumers’ ongoing preference for barely-there looks. Steelman said there are green shoots, however. “In-store, engagement with newer brands like Ilia, Milk Makeup and Dibs, as well as exclusive newness from Mac Cosmetics and Lancôme, offset headwinds,” she said. Steelman is confident that Ulta’s marketing strategy, designed to spark excitement, awareness, engagement and retain loyal customers, was off to a strong and renewed start. “We activated key moments with precision,” she said. “Our Super Bowl campaign, which celebrated women in sports, delivered record social impressions and engagement, amplifying reach and cultural relevance.” The CEO also highlighted the success of the brand’s inaugural beauty festival, Ulta Beauty World, and becoming the sponsor for Beyoncé’s Cowboy Carter tour, which featured curated beauty looks as well as exclusive hair product assortments across the US leg of the tour.
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