Benzinga | Oct 19, 2021 08:14AM EDT

Ulta Gives Long-Term Targets (FY22-FY24): Total Sales Growth 5-7%, Comps Growth 3-5%, Operating Profit As A Percentage Of Sales 13-14%, EPS Growth In Low Double-Digit Range

Company to Host Virtual 2021 Analyst and Investor Conference Today at 8:30am Central Time

BOLINGBROOK, Ill.--(BUSINESS WIRE)-- Ulta Beauty, Inc. (NASDAQ:ULTA) will host its 2021 virtual analyst and investor conference today, Tuesday, October 19, 2021 starting at 8:30 a.m. Central Time. In conjunction with the event, the company is announcing longer-term financial targets and providing an update on its 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. "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."

Long-Term Financial Targets

Ulta Beauty is announcing long-term financial targets for fiscal 2022 through 2024.

Financial Metric Target*

Total net sales growth 5% to 7% (CAGR)

Net new store growth 50 stores per year

Comparable sales 3% to 5% annually

Operating profit (as a percentage of sales) 13% to 14%

Diluted earnings per share Low double-digit growth (CAGR)

Capital expenditures (as a percentage of sales) 4% to 5%

*The long-term targets denoted with CAGR represent the compounded annual growth rate utilizing 2019 as the base year.

Strategic Priorities:

At today's conference, the company will share an updated strategic framework to support its vision to be the most loved beauty destination and the most admired retailer, as it continues to increase market share and drive profitable growth. This framework prioritizes the following elements:

* Drive breakthrough, disruptive growth by expanding the definition of All Things Beauty;

* Evolve omnichannel experiences through connected physical and digital ecosystems All In Your World;

* Expand and deepen the company's presence across the beauty journey for consumers as the Heart of the Beauty Community;

* Drive operational excellence and optimization;

* Protect and cultivate a world-class culture and talent; and

* Expand the company's environmental and social impact.

Highlights of the presentations will include:

* Introducing "Beauty to Go," a commitment that buy online, pick-up in store (BOPIS) orders will be ready for pick-up in two hours or less, giving guests fast, convenient access to the beauty they want most;

* Launching same day delivery in select markets;

* Announcing a new partnership with Google to leverage Ulta Beauty's GlamLab Virtual try-on tool for lipstick and eyeshadow with select brands within Google's Search and YouTube platforms;

* Announcing a strategic investment and partnership with Adeptmind, a leading AI retail technology company creating advanced digital discovery solutions, to power a new personalized search engine for the company's Digital Store of the Future;

* Unveiling a $20 million Digital Innovation Fund to enable the company to closely partner with innovators, entrepreneurs, early-stage investors, and other agents of change to transform the future of beauty, retail, and commerce;

* Launching UB Media, a new business model that harnesses the power of our first party data to transform the way our brand partners can connect with beauty lovers;

* New efforts to increase guest engagement that bring together entertainment, expertise and commerce through a creator and content ecosystem;

* Scaling of personalization capabilities, leveraging the power of our unparalleled data to deepen member engagement and loyalty;

* The announcement of a new, multi-year cost savings target of $150 million to $200 million to fund investments in future growth initiatives;

* Investments to build a guest-centric Supply Chain by enhancing the company's physical network, technology, and capabilities to support organizational growth; and

* Plans to upgrade its Enterprise Resource Planning (ERP) platform through a multi-year, business-led transformation called Project SOAR.

Webcast Information

Today's analyst and investor conference will be webcast live from 8:30 a.m. Central Time to 12:30 p.m. Central Time at www.ulta.com/investor. A replay of the webcast will be available for 90 days.