And while we’ve got some of those shifts, we still are very confident that we’re going to stay with our overall time line and how things wrapped up by the right time line for next year, which is more mid-2024. I’ll turn it over to Scott.
Scott Settersten: Yes, and you’re exactly right. We’re not providing guidance for 2024 here today, but yes, investors should expect that we will cultivate, recoup benefits from the significant investments that we’re making in our core systems year 2022 into ’23 and that we’re going to see benefits materialized in 2024 and beyond. Again, you’ve heard us talk about, these are major initiatives here that we expect to see dividends for a number of years into the future, but I would also caution investors just to be prepared. I mean there’s — we are in the business of growing Ulta Beauty for the long term, and so there’s plenty of other great growth initiatives out there that we’ve got in the queue that we’re ready to go tackle. As soon as we get through some of more of this, I’d call core transformation work here in ’23 and early 2024.
Adrienne Yih: Thank you. That’s very helpful. Best of luck.
Operator: Thank you. Our next question is from Kelly Crago with Citi. Please proceed with your question.
Kelly Crago: Hi. Thanks for taking my question. I just have a couple of quick ones on categories. Just on Makeup, it looks like Makeup’s growth decelerated from high-singles in 1Q to mid-singles in 2Q. Was that driven by a slowdown — a subsequent slowdown in Prestige? Did both decelerate? And how should we think about Makeup growing in 2H? And then just secondly on Skin, we’ve heard from some of the brands that maybe there’s slowing growth in that category, but you do under index versus the category overall. So just curious whether that dynamic can help offset maybe some weaknesses that we’re seeing or starting to see in Skin? And any thoughts on the growth there would be great. Thank you.
Dave Kimbell: Yes. I’d say on Makeup, the main driver is while our — we’re bringing a lot of innovation and newness across that Prestige portfolio, lapping — really, one of the biggest launches in the history of Ulta Beauty with Fenty, lapping that fully in the second quarter is probably the biggest driver. We’re excited though as we look forward. I mentioned a few launches that we that we have coming out Rabanne, Pat McGrath, Polite Society, among others that many of which are exclusive to Ulta Beauty and are coming into our business in the second half of the year. But we anticipate as we lap that launch, we’ll continue to see pressure on Prestige. Mass continues to drive growth behind great innovation, great engagement. And so we’re pleased with the total Makeup side of the business even as we address some of the pressure in lapping previous launches.
In the Skin Care side, yes, we are — we have somewhat lower share than we do in makeup, but our — we have established over time a meaningful share position and the fact that we’re able to continue to drive growth is, again, a testament to our model, our ability, the strength we have across price points. We’re seeing strong healthy growth in both Mass and Prestige, really leaning into dermatologist recommended space and believe that we can continue to drive growth going forward and continue to drive share. The category, we think, is healthy. As I said, with the total beauty category, we do anticipate some moderation. It’s unlikely to see double-digit growth forever, but we’re leaning in. We’ve got a great skin business. Our merchants continue to bring strong innovation.
Our store teams are doing a great job educating our guests, and we’re delivering a lot of growth and we see more coming.
Kelly Crago: Thank you.
Operator: Thank you. Our next question is from Kate McShane with Goldman Sachs. Please proceed with your question.
Kate McShane: Hi. Good afternoon. Thanks for giving me another chance here to ask our question. I wondered if you could talk a little bit about the strategy behind combining your promotional events like you did this past quarter? And did you see a bigger lift as a result of that change versus last year? Will there be any similar approaches to some of your promotional events being taken in the second half?
Dave Kimbell: Great. Yes, I almost used your silence to answer any question that I wanted to. Maybe in the earlier case, but glad you got back in the queue. Yes, we’re excited. We — I think what we did in the second quarter, what our teams did, our merchant marketing, digital, store teams, our go-to-market teams, really, we — they are continually evaluating how we can get better and how we can elevate the impact, and the summer sale is an example of that. We had strong events, solid events that were delivering for years, but the team, through great consumer insights, continued understanding of guest behavior and full understanding of what unique strengths we bring to the table, re-evaluated that. And we’re pleased with the results of that event, the Big Summer Sale as well as, really, our entire promotional strategy.
It was not a huge acceleration in promotional intensity as much as a smarter strategy and it worked. Our guests engaged, we attracted new members, it delivered strong comp growth, we saw strength in both stores and on our e-commerce business, traffic was healthy. So it’s — frankly, didn’t surprise me because I know how the team continues to look for ways to elevate, and it’s another example of great strategy leading to a strong execution. As we look into the second half of the year, we’re evaluating, as we always do, every aspect of our go-to-market strategy. We continue to evolve our efforts. We’ll adapt to competitive changes, consumer insights and make sure we’re delivering at a high level. Sunday, Kate, starts 21 Days of Beauty, one of our biggest events of the year.
And I think you’ll see as that rolls out, a program that’s been around for a while, continued innovation and ways to engage our guests in new ways, so we’re excited to get that going.
Kate McShane: Thank you.
Operator: Thank you. Our next question is from Oliver Chen with TD Cowen. Please proceed with your question.
Unidentified Analyst: Hi. This is Neil here on for Oliver. I would love to hear more about your thoughts on the broader beauty consumer. Someone made a comment about consumers are being less focused on pricing and kind of trading around different price points, so just curious how that behavior holds against the different macro headwinds you mentioned, particularly student loans? What’s your exposure to that? Or how do you quantify that impact as we get closer to the October time frame when that becomes more material? Thanks.
Dave Kimbell: Yes. Well, I’d say first of all, we’re just pleased overall with the continued engagement that beauty enthusiasts are showing for this category. Coming out of the pandemic for these last a couple of years now, just a high level of engagement. You know how over the long-term, last 50 years, this has been a strong grow — consistently growing category because of the emotional connection that it plays in our guest lives, the importance it has and how they express themselves to the world, and that is more true now than ever. And some of the behaviours and engagement tools that emerge coming out of the pandemic continue to fuel the category. Strong innovation, strong connection through marketing and consumer tools and an increased understanding of the role of beauty to wellness and self-care.
