Assessment of Future Performance
Not only has Ulta Beauty shown remarkable growth in its industry, it shows potential for continued growth, both in comparison to its competition and itself. The company has plans for further fiscal growth and store expansion, as well as strategies to improve its current branding and marketing; the company also shows potential to accumulate and retain an increasing amount of new customers.
Fiscal Growth
In recent years, Ulta Beauty has been able to truly compete with other companies in the beauty industry. While it is impressive that Ulta Beauty is able to outperform its competition, it should also be noted the progress the company makes in relation to itself. In 2008, Lyn Kirby still served as CEO for Ulta Beauty. At the time, the company was focused on domestic growth and had plans to “more than triple its number of US stores to 1000 by 2017,” according to Aarthi Silverman (2016, para 1). In 2016, Ulta Beauty is still on track with that plan; the company operates 886 stores at the end of the first fiscal quarter of 2016, according to a news release from the company on May 26, 2016 (Ulta Beauty, 2016). The news release went on to explain that Ulta Beauty is raising its previously announced fiscal 2016 guidance. CEO Mary Dillon has even said that e-commerce for the company is expected to grow a lot over the next few years, bringing in even more sales and financial growth (Low, 2016).
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Ulta Beauty has had to rethink its fiscal 20116 outlook based on the results from the first quarter of the fiscal year. Also, the company is still on a track of rapid expansion, as it continues to open stores across the country. In fact, Holmes has reported that “this summer, Ulta Beauty… will add 40 stores, part of plans to increase by 100 this year to more than 970” (Holmes