So we’re excited about both, what it’s contributed so far, and it’s a big focus for our organization to take full advantage and be a leader in that space as well.
Operator: Our next question comes from the line of Krisztina Katai with Deutsche Bank.
Krisztina Katai: I’ll add my congratulations to both Scott and Paula. But my question is to you, Dave. I was wondering if you could talk about member engagement. You said that diamond and platinum members increased 20%. So what are you seeing with some of these newer members versus your more mature cohorts? And what are some of the early reads that you can share from a personalization effort perspective, how those are helping the maturation of wallet share or member spending that essentially gives you confidence that you can continue to deliver on your compound goal? Thank you.
Dave Kimbell: Yes. Great question, Krisztina, because our loyalty program is so key to our business and our success, and I’d tell you, I can’t — couldn’t be more pleased and proud of the team’s efforts to evolve and advance this program. And what I say internally to our 53,000 associates is every single one of us own and contribute to loyalty, both the acquisition of new members, but importantly, the engagement and delighting our members every single day, in-store, online and our guest services through our assortment, our advertising, our social media, every touch point we have. And so, it is an always-on activity for us. It’s top of mind every day for us to make sure that we are delighting our guests because we know that’s the secret to our success and our long-term future.
The big picture result of 8% growth of our loyalty program is evidence that that’s working because the things that come together to drive that type of growth on a big number — a big number to start with is, first and foremost, retention. We wouldn’t be growing it if we weren’t retaining at a very high, very healthy, we believe, industry-leading level, and we continue to work to improve that every day with every member through our personalization. So, the personalization efforts, I’d say, first and foremost, are ultimately about retention because if I can use personalization to provide more value to our guests, then they will be more likely to stay with us, to buy more with us and to be a long-term guest to move up into the platinum and diamond levels and all of that.
We also saw nice results in new member, and never been a member of Ulta Beauty, and we continue to expand that, and that’s through our new stores, our advertising, our partnership with Target, our digital presence, our social media. And we feel like, while we’ve had a lot of scale, there are tens of millions of beauty enthusiasts that are not currently part of our program. And the third area is reactivation, where while we have very strong healthy retention, we don’t retain everybody. So there is a pool of guests that most of the time, it isn’t because they had a bad experience. They just fell out of the habit of shopping at Ulta. And so we have a very personalized direct program to reengage and reactivate those lost guests, and that’s been contributing to our growth.
So across the board, we’re pleased with the engagement. We’re pleased with the spend per member, all metrics in that program continue to be encouraging to us, and we see a long runway. And we’re focused on it every day through innovation, hard work and just a commitment to guest experience to drive that for the long term.
Kiley Rawlins: Operator, I think we have time for one more question.
Operator: Our last question comes from the line of Michael Lasser with UBS.
Michael Lasser: Best wishes to Scott and Paula. My question is, how long are you willing to absorb market share losses in the Prestige Beauty category before responding with an increase in promotional activity? And if we assume that those market share losses extend into 2024, how is that going to impact Ulta Beauty’s ability to achieve its earnings algorithm next year? Thank you so much.
Dave Kimbell: Yes. Michael, I’d say that — first, I’d start by answering that question is, yes, our goal and our long-term history is to gain share. And our entire strategy across our assortment, our marketing, the loyalty program, our stores, our e-com, our digital tools, everything we do is designed to be a leader and to gain share and to drive our business forward. And in many parts of our business, we have been and continue to be doing that. Our prestige makeup and hair business have been more challenged. And that’s really a reflection of expanded points of distribution, which I talked about hundreds points of distribution largely in those that are impacting disproportionately those categories and some other competitive pressures.
In mass, makeup, in mass skincare, in mass hair care, in prestige skincare, prestige fragrance, we are gaining share and have continued to do so. So, our focus is to continue to do that, to take the healthy, strong share growing parts of our business and accelerate that, and to return the ones that have been a bit more challenged to growth, and we have got plans to do that. I talked about makeup on an earlier question. And we go through the newness that we’ve launched and more to come as we turn the calendar to 2024, the execution that we have in store, our focus online, we’re confident that we will be able to drive that back. Same holds true in hair care. Specifically around promo, honestly, we see it, Michael, as a balance where we feel good about our overall position, our overall growth.
