Margin Outlook and New Product Contribution
Q: What's driving the margin outlook to 14%-14.3%, and how will new products contribute this year?
A: Ulta expects operating margins between 14% and 14.3% of sales, mainly due to SG&A deleverage from investments in growth enablers and wage pressures [5]. Merchandise margins will decrease modestly because of lower margin rates and supply chain costs, partially offset by growth in other revenue [5]. New product launches like Charlotte Tilbury in 600 stores and Sol de Janeiro in 700 stores are expected to contribute significantly, maintaining historical newness contribution levels of 20%-30% of sales [5].

Store Expansion Plans
Q: How will the increased store expansion this year impact market share?
A: Ulta plans to open 60 to 65 net new stores in fiscal 2024, including 10 small format stores, aligning with previous growth targets [3]. This expansion aims to win back market share from competitors [3].

International Expansion into Mexico
Q: Why is Ulta entering Mexico instead of Canada, and what's the long-term opportunity?
A: Ulta chose Mexico after careful evaluation due to strong performance in border stores and a promising partnership with Axo [1]. They plan to begin operations in 2025, with associated costs included in 2024 guidance [1].

Investment Plans and Impact on Expenses
Q: What are the 2024 investment plans compared to previous years?
A: Incremental investments will be limited in 2024 as foundational projects like Project SOAR and Digital Store wrap up [6]. Ulta invested $62 million in 2023 and $55 million in 2022 on transformational strategic investments [6].

Promotional Environment and Sales Outlook
Q: How will the promotional environment affect 2024 guidance and sales mix?
A: Ulta doesn't expect a significant increase in promotional intensity, planning for a competitive yet rational environment [8]. The company anticipates a normalized pricing environment and will manage shifts between mass and prestige products [8].

Balance Between Prestige and Mass Products
Q: How is the balance of prestige and mass products shaping future growth and margins?
A: Ulta sees strong engagement across both prestige and mass categories and is well-positioned to adapt to consumer shifts [2]. Merchandise margins remain higher than in 2019 due to a healthier business mix [2].

Luxury Brands Performance and Expansion
Q: How did luxury brands perform, and will there be more rollouts in 2024?
A: Luxury brands like Chanel, Dior, Natasha Denona, and Pat McGrath performed well, meeting guest needs [7]. Ulta will continue to grow existing luxury partnerships but hasn't shared specifics on new launches [7].

UB Media Growth Potential
Q: What's the update on UB Media's platform and scaling potential?
A: Ulta is pleased with UB Media's progress, leveraging first-party data to enhance partnerships with brands [4]. Although specific numbers aren't disclosed, the company expects continued growth in this area [4].

Share Gains in Prestige Cosmetics
Q: Will Ulta return to share gains in the prestige cosmetics category?
A: Ulta is focused on driving growth in all makeup segments, including prestige, through new brands like Charlotte Tilbury, exclusive offerings, and innovation from existing big brands [0]. They are confident in delivering expected growth over time [0].