Ulta Beauty plans to partner with new brands in order to increase its makeup sales.

Cosmetics made up 43% of total retailer sales for the year 2021. This is the highest segment, but it was down slightly from the fiscal year 2020. The company stated that during its fourth-quarter earnings reportSupergoop and Olaplex are good examples of brands that can help boost performance in the flagship segment.

According to consensus estimates by Refinitiv, net sales increased 40% in 2021, to $8.6 Billion, while they rose 24% during the fourth quarter, to $2.7 Billion, which is consistent with Wall Street’s expectations.

Dave Kimbell, CEO of the company, stated that although sales recovered after a slump in 2020’s, the makeup section has proved more volatile and slower than other areas. He said that makeup is subject to greater volatility due to Covid-related changes in shopping, and higher prices for consumers.

“We remain optimistic as we examine the beauty sector, even when there are headwinds. This category is strong. It’s growing. Kimbell explained that this is an emotionally meaningful and important product.

The August issue of the company opened its first mini shop locations via a partnershipWith Target. Ulta opened over 100 Target shops to-date, and she hopes to open more. add another 250 locations this year.

Ultamate rewards, Ulta’s loyalty program, has seen an increase in membership, with 4 million more members joining Ulta, according to executive. This brings the total number of Ultamates at 37 million.

Adrienne Yih from Barclays Capital, an analyst said that this company’s increasing rewards base is “a foundation for continuing momentum as 2022 opens.”

Yih stated in a research paper that “the combination of increasing brand awareness and Target’s partnership and new brand additions such as Olaplex and N1 de Chanel are driving new customers acquisition.”

Ulta also has a website. diversity initiativeTo support beauty companies by people who are Black, Indigenous and People of Color. Fenty was founded in January by Rihanna (singer and entrepreneur). It is just one of many Black-owned brands the retailer introduced to shelves.

We’re not just there to sell these brands. It’s one thing to arrive on our shelves — it’s another thing to thrive. Kimbell stated that this is how we measure success on the company’s earnings call. We’re using this strategy to increase engagement with guests, and it’s paying off for our brands. So we’re optimistic about beauty – about makeup, and BIPOC will be one of the elements that will help us drive growth going forward.”

Ulta anticipates that full-year earnings per shares will range from $18.20 to $18.70, with revenue between $9.05 billion & $9.15 billion. According to Refinitiv. Analysts forecasted 2022 earnings per-share of $17.84, and revenues of $9.14 Billion.

Ulta shares fell 2% on Thursday after the earnings report and have increased by roughly 7% in the past 12 months.