In this edition of the Glossy+ Research Briefing, we analyze how Ulta Beauty has evolved its business strategies under the leadership of its past two CEOs to understand the role its newly appointed CEO, Kecia Steelman, will have to fill.
An overview of Ulta’s performance under its past CEOs
On Monday, Ulta appointed Kacia Steelman as its new CEO, replacing Dave Kimbell who retired after 11 years with the company. Steelman had been Ulta’s COO since 2023.
Dave Kimbell — June 2021-2024
- Rallied the company around a “Bigger, Better, Together” business approach that focused on human connections, both with employees and customers.
- Under Kimbell’s leadership, Ulta grew to have more than $11 billion in annual revenue.
- As consumers shied away from making purchases at cosmetics retailers amid elevated inflation and interest rates, company shares dropped 11% over the past 12 months.
- Ulta unveiled a strategic roadmap in October 2024 to open 200 new stores and to increase its loyalty program membership to 50 million members by 2028.
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Mary Dillon — July 2013-2021
- Under Dillon’s leadership, Ulta’s stock more than tripled in value and the number of stores the retailer operated doubled to more than 1,200.
- Ulta joined both the S&P and Fortune 500 listings.
- Ulta and Target made a deal for Ulta to open scaled-down cosmetics shops inside Target locations across the country.
- Net sales for the company maintained a 20% or higher growth rate from 2013 to 2017.
- The retailer shifted from a regional mass beauty player to a company that also offered premium beauty brands.
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After 11 years under Kimbell’s leadership, Ulta is planning for the future by appointing Steelman as its new CEO.
During his time as CEO, Kimbell was committed to ensuring diversity and inclusiveness at Ulta Beauty in order to enhance its market leadership, according to a statement from Ulta. This drove record-level brand love and awareness for the retailer, according to Ulta, and Steelman said it is a commitment she will continue to uphold.
“Ulta Beauty is more than a beauty retailer – we are a destination that helps bring to life all the beautiful possibilities that lie within every guest and associate who walks through our doors,” Steelman said. “I am confident the strategic priorities we shared last fall will enable us to capture greater market share in beauty and wellness and deliver long-term profitable growth.”
Along with announcing the succession plan, Ulta also shared a better fourth-quarter outlook than previously predicted thanks to “stronger-than-expected performance during the holiday season.” Ulta shares are now up 2% following these updates from the company.
