Ulta Beauty (ULTA) Oppenheimer’s 24th Annual Consumer Growth & E-Commerce Conference summary

Macro environment and consumer trends

• Consumer confidence is under pressure due to inflation, but beauty is viewed as an essential, supporting solid category growth across income cohorts.

• Category growth has moderated to mid-single digits after years of double-digit gains, with prestige moderating to high single digits and mass to low single digits.

• Innovation and the convergence of beauty and wellness are driving future growth, with plans to strengthen the top line and regain market share.

Competitive landscape and strategic positioning

• Traffic, consumer awareness, and loyalty program membership are all increasing, with nearly 44 million loyalty members and strong retention.

• The business model integrates mass, prestige, and luxury, leveraging the loyalty program as a key growth driver.

• Sales-driving levers include newness, digital, social relevancy, promotions, and advertising, all protected in current guidance.

Category performance and innovation

• Prestige makeup is growing, with 25 new brands launching in the back half of the year and a focus on exclusive brands.

• Skincare remains strong, driven by derm brands and mass brands attracting new guests, with consistent in-store space and enhanced associate training.

• Haircare and hair tools have turned positive, with newness and events driving engagement, and fragrance continues to grow, especially among younger consumers.

• Recent brand additions like Charlotte Tilbury and Sol de Janeiro have exceeded expectations, and a relaunch of the private label is planned.