Ulta Beauty will launch a third-party marketplace later this year as it seeks to combat slowing sales and declining market share. Despite a solid Q4 and FY 2024 overall, the company saw net sales drop slightly in Q4, which ended Feb. 1, 2025. This has prompted the beauty retailer to present a cautious 2025 outlook and add new details to the “Ulta Beauty Unleashed” transition plan, including an online marketplace.
Net sales were down 1.9% in Q4 to $3.5 billion, compared to $3.6 billion in fiscal 2023, but net sales increased 0.8% overall in fiscal 2024, with comparable sales also up 0.7% throughout the year. However, that 0.7% increase is markedly lower than the previous year’s increase of 5.7%, and as new CEO Kecia Steelman pointed out on a call with analysts, Ulta lost market share in the beauty category for the first time ever in 2024.
Steelman outlined a series of initiatives to amp up growth in the coming year amid headwinds in beauty and the economy. “It’s clear to me that how we’ve operated must change to ensure that we capture the opportunities in front of us,” said Steelman on the call. “We are focusing to ensure the guest is at the center of everything we do, and we intend to move faster, invest strategically and optimize our business to achieve our long-term goals to drive profitable growth and market share.”
Ulta Teams with Mirakl for New Marketplace
Ulta’s new marketplace will be built on the Mirakl platform, and as with other marketplaces launched by established retailers, the goal is to expand the retailer’s reach online.
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“This collaboration is set to enhance Ulta Beauty’s already impressive offering by expanding its product range and providing customers with even more choices,” said Kevin Lujack, Manager of Solution Engineering at Mirakl on LinkedIn. “Our marketplace technology will empower Ulta Beauty to seamlessly integrate new brands and products, ensuring a delightful shopping experience for their customers.”
The marketplace will launch this year and will be focused on beauty and wellness offerings. Ulta is currently accepting applications for brands that want to participate, according to a dedicated page on the company’s website.
The deal marks a second big win for Mirakl in 2025 — the company also will operate Best Buy’s new marketplace, set to launch later this year.
Ulta Growth Plan Includes New C-Suite Appointments, Digital and Store Upgrades
The marketplace ties in nicely to the three growth drivers Steelman is focusing on: brand building, personalization and digital acceleration. “The beauty landscape has fundamentally changed,” said Steelman. “Guest expectations continue to rise, and the pace of change is accelerating. The competitive environment in beauty has never been more intense.”
Other initiatives coming down the pike in 2025 include:
- Enhancements to inventory levels and product assortment, with a particular focus on exclusive, emerging and established brands and on the wellness category;
- Enhancements to in-store presentation and the guest experience, which Steelman said “are not as strong as we would like”;
- Increases in automation and real-time content on Ulta’s digital channels to drive more personalized experiences;
- New features on the Ulta app and website;
- Enhancements to the Ulta Beauty Media retail media offering, including “new product innovation that provides brands with new ways to reach consumers”; and
- Cost optimizations of $200 million to $250 million over the next three years.
Steelman also outlined a series of organizational changes aimed at accelerating decision-making and aligning to these goals:
- Store functions have been centralized under Ulta Beauty veteran Amiee Bayer-Thomas, who will serve in the newly created role of Chief Retail Officer;
- Mike Maresca, who joined the team in 2023, will add enterprise-wide responsibilities to his scope and now serve as Chief Technology and Transformation Officer; and
- Kelly Mahoney has been promoted to Chief Marketing Officer.
“Our Ulta Beauty Unleash plan positions us to reassert our leadership position, building on our strengths by fueling growth of our core business, scaling new accretive businesses that further our differentiation and realigning our foundation for the future,” said Steelman. “While sales growth is the ultimate performance indicator, we are closely tracking a series of KPIs for each of our focus areas, including in-store conversion, member growth and retention and app engagement.”
