Dive Brief:
- Ulta Beauty plans to better personalize its digital experience as the company prepares to navigate economic uncertainty, executives said on a Q1 2025 earnings call Thursday.
- The beauty retailer is expanding its automation and real-time content delivery capabilities across key digital channels, according to President and CEO Kecia Steelman.
- Ulta’s loyalty program, which grew its membership 3% year over year to 45 million in the first quarter of 2025, will drive this effort, according to Steelman. “Again, it's really taking our deep knowledge and understanding of our loyalty member base and elevating that personalization, that connectivity and communicating with them in the ways that they best feel suited,” she said on the call.
Dive Insight:
Ulta Beauty wants to focus on the aspects of the business it can control, including customer experience, as it works to retain and attract customers amid economic uncertainty and increasing competition in the beauty space.
“I would just say beauty and wellness is what we do,” Steelman said. “And when a lot of other players are trying to come into this space, this is where we are the experts. We have a leading loyalty program. Our omnichannel offering is anchored in that human connection, that in-store and that powerful digital connection — that combo really does set us apart.”
Ulta’s upcoming omnichannel investments will build on recently launched app features. Split Cart lets customers divide orders between multiple fulfillment methods, while Shop My Store offers users real-time visibility into store assortment and visibility.
More than 60% of e-commerce sales are made through the app, according to Steelman. However, the company is exploring ways to enhance the digital experience beyond the app alone.
“We're accelerating our capabilities to deepen guest connection and drive performance,” Steelman said. “We've expanded automation and real-time content delivery across key digital channels, allowing us to respond faster, personalize at scale and enhance the overall guest experience.”
While digital is a focus, stores still account for 80% of Ulta’s sales, according to Steelman. The retailer won’t leave the in-store experience behind, and it’s putting an emphasis on better in-stock rates.
Ulta also increased the number of payroll hours in its stores in its latest quarter, according to Steelman. While this was a significant expense for the company, the additional worker hours paid off as the brand recovers from a downturn last year.
“We're just doubling down and making sure that we're giving the very best guest experience that we can in our stores, making sure that we have great marketing campaigns to drive the traffic into the store, and making sure that we have the products for the guests when they're coming in and giving a great guest experience,” Steelman said.
Ulta’s investments helped it achieve a solid quarter. Comparable sales rose 2.9% year over year in the first quarter of 2025, according to a company earnings report. Net sales rose 4.5% to $2.8 billion.
