Retailers have continued to report declining or lackluster sales growth.

But Ulta Salon (ULTA) managed to report comparable store sales growth of 15% in its first quarter report on Thursday, causing the stock to rise about 8%.

“So this is where all the traffic is going,” wrote Deutsche Bank analyst Mike Baker, who pegged the company’s quarter the ULTAmate retail earnings report.

Meanwhile, the company raised its full year guidance for comparable store sales to rise 10-12% (up from previous guidance of 8-10%) with earnings per share growth in the mid-20s. And while many retailers suffered declining margins because of promotional and discount pressure, for Ulta, margins rose 130 basis points to 13.8%, beating estimates.

“We believe it is remarkable that the comp delta to retail peers across categories and store formats continue to widen,” said RBC’s Brian Tunick.

In the last five years, Ulta’s stock has risen 350%. This beat the well-positioned home improvement retailers Home Depot (HD) and Lowe’s (LOW) by a long shot, and even bested e-commerce giant Amazon (AMZN). Traditional retailers like Macy’s (M) and Nordstrom (JWN) lag far behind.

“We view ULTA as a disruptive category killer that should continue to take share in the beauty retail space,” said Morgan Stanley’s Simeon Gutman. “The broad based sales strength in Q1 is a testament to the backbone of the business model: A one-stop shopping beauty experience that spans prestige cosmetics and makeup to professional hair to mass beauty to salon services.”

It looks like the retail space could learn a thing or two from Ulta. So below is a layout of their secret sauce.

First, its targeted marketing strategy

Despite operating over 800 stores across the US, ULTA has focused on growing its low brand awareness (40%) and low market share (3% of the estimated $121 billion US beauty products and salon services market). Its marketing strategy focuses on new customer acquisition, emphasizing “emotion and education,” according to Wells Fargo’s Ike Boruchow. This makes the company less pressured to compete on price and establishes Ulta as a “beauty authority” driving customers. Meanwhile, existing customers are targeted through a revised customer relationship management (CRM) program with offerings tailored to individuals to drive conversion.

Second, its flexible supply chain

Management is looking to become a more flexible operator that can better forecast demand and react more quickly to changing trends, according to Boruchow. Infrastructure investments with greater distribution capabilities are just starting to come online, allowing the company to better manage inventory, which has been an issue for many traditional retailers.