Ulta Beauty has started the year on a tear, with shares hitting an all-time high.
The US beauty retailer launched its turnaround strategy “Ulta Beauty Unleashed” under new CEO Kecia Steelman last year to get its business back on track – and its efforts appear to be paying off.
Ulta Beauty’s share price hit a record high of US$683.45 on 21 January, after an increase of nearly 40% last year.
However, there may still be further to go, with new launches in the pipeline and international expansion among the reasons investors are bullish on the business.
Selena Gomez’s Rare Beauty is landing at Ulta Beauty stores and on its website on 1 February, and the retailer is no doubt hoping to recreate Sephora’s success with Hailey Bieber’s Rhode.
The buzzy beauty brand delivered more than $10m sales within two days of its debut at the LVMH-owned retailer last autumn.
As part of Ulta Beauty’s expansion plans, meanwhile, the retailer is making its debut in the United Arab Emirates (UAE) with a store in Mall of the Emirates opening this week.
Further locations are set to open their doors in Dubai Mall, Dubai and Red Sea Mall in Jeddah, Saudi Arabia, in March and May, respectively.
Several investment banks have upped their price target for Ulta Beauty stock, while Deutsche Bank (DB) and Jefferies have both resumed their coverage of the company.
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