Ulta Beauty Mexico Targets Nationwide Expansion in 2025

Ulta Beauty Mexico plans to open multiple stores across the country in 2025. The company, which specializes in cosmetics and perfumes, operates through three main areas: distribution of cosmetics and fragrances, beauty salon operations, and online product sales. As of February 2024, Ulta Beauty had 1,385 stores in the US.

Ulta Beauty, the leading beauty retailer in the United States, has announced plans to open multiple stores across Mexico in 2025. The company, which specializes in cosmetics and perfumes, operates through three main areas: distribution of cosmetics and fragrances, beauty salon operations, and online product sales. As of February 2024, Ulta Beauty had 1,385 stores in the US [1].

The expansion into Mexico marks Ulta Beauty's first brick-and-mortar international debut, with the first two stores opening in Mexico City in August 2024. The retailer plans to open several additional stores across Mexico throughout the year, with locations in Guadalajara, Monterrey, Tijuana, and other cities [2]. By the end of 2025, Ulta Beauty aims to have a total of 11 stores in Mexico.

The company is partnering with Grupo Axo for its Mexican operations. Andrés Gómez, CEO and chairman of the board at Grupo Axo, stated that Mexico is home to one of the world’s most dynamic and passionate beauty communities [1]. Ulta Beauty's entry into Mexico brings 35 beauty brands to the country for the first time, including Ulta Beauty exclusives such as Isima by Shakira, Peach & Lily, and Ulta Beauty Collection, alongside local Mexican brands like AHAL and Bailando Juntos by Yuya [1].

Ulta Beauty's expansion into Mexico is part of its broader international growth strategy, which also includes a joint venture in Mexico, a franchise in the Middle East, and its subsidiary Space NK operating in the United Kingdom and Ireland [1]. The retailer's strong financial health is evident, with 15 analysts recently revising their earnings expectations upward [1].

Recent financial performance has been robust. Ulta Beauty reported a 6.7% increase in comparable sales for the second quarter, surpassing market expectations of around 5%. This growth was driven by a 3.7% rise in transactions and a 2.9% increase in average ticket size [1]. Several analysts have raised their price targets for Ulta Beauty in light of these strong results, reflecting a positive outlook on the company's recent performance [1].

The Mexican market presents a significant opportunity for Ulta Beauty. The country's unemployment rate dropped to a historic low of 2.4 percent in 2024, and beauty sales rose 11 percent to $16.2 billion, according to data firm Euromonitor [2]. More than half of the population are Gen-Z or Millennials, key beauty cohorts. However, competition will be stiff, with key American rival Sephora opening between seven to 10 new stores in Mexico each year since 2021, and local premium retailers like El Palacio di Hierro remaining strong footholds in the country [2].

Ulta Beauty's expansion into Mexico is a strategic move to tap into a growing market and to share its purpose globally. The company aims to unite beauty enthusiasts on an international scale and expand its customer base [2].

References:

[1] https://www.investing.com/news/company-news/ulta-beauty-opens-first-stores-in-mexico-marking-international-debut-93CH-4224441
[2] https://www.businessoffashion.com/news/beauty/ulta-beauty-opens-in-mexico/