Beauty retailer Ulta Beauty Inc (NASDAQ: ULTA) ranks among the top 10 best-performing stocks of the 2010s, and Mary Dillon was the CEO for most of that time. She joined CNBC on Thursday to talk about the past decade and what's yet to come.
Thrilling 10-Year Run
Dillon said she is "thrilled" with Ulta's 10-year journey but there is still much room left to grow. Over the past 10 years, the company expanded from 300 stores to 1,200 while sales increased from $1 billion to $7 billion.
Part of the success can be attributed to the beauty of Ulta Beauty's business model in that it operates across multiple categories, she said. Throughout 2019, there was some weakness in makeup but the company was able to offset with other segments.
Makeup will make up lost ground but will require some new innovation to jump-start the market, she said. In the meantime, the company remains focused on addressing trends that aren't showing any signs of pending weakness, like skincare.
"We are always out learning about what's hot and what's happening in beauty," she said.
Ulta boasts more than 33 million people in its Ultimate Rewards loyalty program and the company makes sure it is a seamless experience, the CEO said. Store associates are kept up to date on the latest perks while the company works behind the scenes to offer a more personalized and relevant offers to members.
2020 Growth Plans
Ulta already stated it plans to grow its store to 1,400 to 1,700 in the U.S. and to expand and become a global beauty retailer. She said the company is "in the process" of launching in Canada which will prove to be a "fantastic" market.