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Members of Ulta’s Rewards Program Drive 80% of Sales

Ulta’s Loyalty Programs Helps Boost Sales

Members of Ultamate Rewards Program Drive 80% of Ulta's Sales

The beauty brands loyalty program has over 16 million active members which helps drive well over 80% of the beauty retailer’s sales, according to CEO, Mary Dillon.

“Our store associates are doing a fantastic job converting guests to loyalty members and they achieved a significant increase in conversion, leading to an acceleration in new-members growth,” stated Dillon. “Members-retention rate increased, and we continue to see higher frequency of purchases, higher average ticket and higher average sales per member.

“In the second quarter,” added Dillon, “our Platinum members—our guests who spend more than $400 with ULTA Beauty during the year—received many perks, including Platinum-only beauty steals, Platinum bonus-points offers, early access to new products, a Platinum social contest, free-shipping offers and targeted surprise and delight gifts.”

Ulta’s net income for the fourth quarter was $92 million, up 37.4 percent over the same period last year, and earnings per diluted share rose 39.4 percent to $1.45, compared with $1.04 a year earlier. That beat analysts’ average forecast of $1.25 to $1.30, according to FactSet.

The company also raised its expectations for overall 2016 sales and earnings, saying it now predicts to hit 10 to 12 percent comparable sales growth, up from its previous estimate of 8 to 10 percent. Ulta now says it expects earnings per share to grow in the low 20 percent range, up from the 18 to 20 percent it forecast previously.

Ulta plans to open 25 new stores in the fourth quarter after opening 13 in the first. Ulta, which has 886 locations, aims to add 100 new stores this year.


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