With roughly 1,400 locations, Ulta Beauty (NASDAQ: ULTA) is one of the largest cosmetics retailers in the world. This year, management expects the company to generate net sales of at least $11.5 billion, which is enormous.

In addition to selling products that are widely available, Ulta Beauty sells exclusive products that can only be purchased at its stores. And beyond selling cosmetic products, it also offers in-store services such as hair and nail salons. This combination of products and services differentiates it from some of its competitors and keeps customers coming in.

I'll readily admit that I'm not a customer and can't offer any personal anecdotes to explain Ulta Beauty's success. That said, I can recognize something special when I see it from the sidelines. As of the first quarter of 2024, the company had over 43 million active loyalty members -- that doesn't just happen out of the blue.

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Source Fool.com