The Ulta Beauty chain has raised its sales growth forecast for the current fiscal year, even as it said it is aiming to double its market share and its store network in the long run.
For fiscal 2016, Ulta now expects like-for-like sales to grow by 12%-14%. It also expects overall sales for the 2017-2019 period to grow by 7%-9%, compared to its previous forecast of 5%-7%, while LFL sales are now forecast to grow by 14%-15% for the period, up from 11%-13% estimated earlier.
CEO Mary Dillon also said the company sees room to expand its store network to around 1,700 outlets in the US, up from the 1,200 it had put down as its target. Dillon said the company will also focus on riving online sales and targetting key demographics, such as millennials, teens, and Latinos.
Dillon noted: “We have been growing like crazy. I am proud of that, but we are still only a 4% share of the $127bn beauty market in the US today. So, we see an easy path to continue to grow share. In fact, double our share, we believe in the next few years.”
Ulta currently operates just over 900 outlets and generates sales of around $4bn.