People are buying 'above the mask' makeup since the pandemic, Ulta CEO says

March 18, 2021: On Thursday, the CEO of Ulta, Mary Dillon, says spending more time indoors hasn’t stopped people from wanting to wear makeup.

“We see more of what we call “above the mask,” such as eyes and brows and lashes, and we see that makeup, in general, is starting to come back,” Dillion said in a “Squawk Box” interview.

“It’s just a matter of how long will it take for people to be in a situation when they do not need to wear a mask in a more social situation,” Dillon added.

In Ulta’s makeup category, consumers are purchase products such as eyeliner, mascara, and brow products. At the same time, they’re not worrying too much about products like lipstick and blush since they go unseen under the mask.

Skincare is also seeing a significant increase in interest since the pandemic began.

“It started with things like self-care. People had more time to learn about skincare to put a bunch of new skincare routines into their procedure because they have more time at home,” said Dillion, who is stepping aside in June to become executive chair.

Also, Dillon said the hair care, fragrance, and clean beauty categories also fared well during the pandemic.

Despite uncertainty about the pandemic, she is cautiously optimistic about the industry’s growth.

“I think the spending is going to continue to accelerate, but we’re not sure when that’s going to happen, so we will be cautious for the first half of the year,” said Dillon, who Ulta President Dave Kimbell will succeed.

Ulta stock was down 1.4% in morning trading.