Ulta Beauty

As a retailer of third‑party brands, Ulta’s direct pricing latitude is structurally limited versus a proprietary content owner.

However, it exerts indirect pricing power through category and mix management, vendor funding, private label (Ulta Beauty Collection), salon service pricing, and a loyalty engine that supports targeted promotions without sacrificing overall merchandise margins.

The company’s recent results and guidance show gross margin supported by lower shrink and favorable channel mix, even as SG&A has delevered, suggesting levers beyond simple list price.

UB Marketplace and international can broaden higher‑margin niches over time, but we assume modest merchandise margin expansion from mix and shrink, not large pricing actions.