Ulta Beauty CEO Mary Dillon is showing how retail can work and is “crushing” the competition along the way, CNBC’s Jim Cramer said Tuesday.
The cosmetics company reported a great quarter last week, including more than 9 percent same-store sales growth and a 14 percent subscriber growth in its rewards program, he said. Ulta Beauty’s 31.8 million people on its rewards program also trumps the 16 million on Starbucks’ loyalty plan, he said, pointing out that Starbucks has 10 times the number of locations Ulta Beauty has.
“Ulta’s rewards program is so persuasive, with various tiers of value that I found myself wondering why don’t more retailers adopt this model?” the “Mad Money” host said. “Mary Dillon understands that the future of retail is all about personalization.”
Additionally, Ulta is keeping their stores and website fresh, Cramer said. On top of that, the company has a dominant influencer reach on social media, particularly through Kylie Jenner and her line of cosmetics.
“When Kylie Jenner launches a line of cosmetics, making herself the youngest ever, well let’s say allegedly, self-made billionaire, you can’t invest in her,” he said. “But you can invest in Ulta, which has the best chance to replenish a product line that was sold out this quarter.”
Who knows how much money the beauty chain could have made if it had enough of Jenner’s products in inventory?
Get Cramer’s full thoughts here