The top performing retail stock of the decade
Emailed on January 3rd 2020 in The Friday Forward
Was not Amazon.
Fun little trivia for you: as of last week, Ulta Beauty was up 1,271% over the past 10 years, while Amazon gained 1,236%. The S&P 500 has grown 189% for the same period, outperforming just eight of 26 large-cap retail index members.
For Ulta, the real inflection point came in 2013 with the hiring of Chief Executive Officer Mary Dillon, according to Loop Capital’s Anthony Chukumba.
Under Dillon’s leadership, the beauty retailer’s fundamental performance improved, in part due to the relaunched customer loyalty program, called Ultamate Rewards. Ultamate loyalty members represent more than 95% of the company’s total revenue.
Ulta has benefited from the continued decline in foot traffic at the mall, where most of its competitors are located, Chukumba said. The company also has an “amazing” e-commerce business and has been helped by the rise of beauty influencers and changing cosmetic trends.
The worst performing retail stock? Gap Inc. with a 15% slide
