Ulta Beauty CEO Dave Kimbell is retiring, effective today, January 6. Kecia Steelman, the company’s President and Chief Operating Officer, will step into the CEO role and also join Ulta’s Board of Directors. Kimbell will continue to support the company as an advisor until June 28.
Steelman was appointed President and Chief Operating Officer in 2023 after holding various executive roles at Ulta since 2014. Known for her inclusive and thoughtful leadership, Steelman’s experience at Ulta spans across retail operations and services, real estate, corporate strategy, and business transformation.
Of the news, Steelman said, “I am honored and excited to lead Ulta Beauty through its next chapter of growth as President and CEO. Having spent the last 30 years in retail, I have worked every position imaginable, from stocking shelves to executive leadership. These experiences provide a deep understanding of the industry and an immense appreciation for the contributions people make at every level. I’m confident in our team and our strategic plan which will enable us to build upon Ulta Beauty’s strong foundation and take our company to new heights for our guests, associates, brand partners, and shareholders.”
Kimbell, who joined Ulta Beauty in 2014, was named CEO in 2021 following the departure of longtime CEO Mary Dillon. During his tenure, Kimbell grew the company to more than $11 billion in annual revenue and delivered double-digit growth in diluted earnings per share.
“Serving as CEO of Ulta Beauty has been the highlight of my career, and I am proud to have led and worked alongside so many associates who are passionate about delivering great experiences for our guests,” said Kimbell in a company issued press relaese. “Kecia is a strategic leader with a proven record of driving operational excellence and creating exceptional guest experiences while fostering a caring and inclusive culture. I have every confidence she will expand Ulta Beauty’s leadership in beauty and wellness.”
According to a note written by Jefferies Equity Research, Steelman’s breadth of retail experience, which prior to Ulta included Family Dollar, Home Depot, Expo Design Center, and Target, poises her for the top spot. “Though we are surprised by the timing, [the company] seemed to be posturing Steelman to take the helm as she has been visible to investors over last few years.”
In November 2024, Ulta’s Chief Merchandising Officer Monica Arnaudo announced she would be retiring in 2025. Arnaudo joined Ulta in 2017 as SVP Merchandising, and was named to her current role in 2019.
Reflecting a stronger-than-expected performance during the holiday season, Ulta has increased its fourth quarter outlook. Based on sales performance quarter-to-date, the company now expects comparable sales will increase modestly and operating margin will be above the high end of the company’s previous expected range of 11.6% to 12.4% of sales for the fourth quarter of fiscal 2024. The company plans to report financial results on March 13, 2025.
The retail sector remains cutthroat, especially in beauty where the fight for prestige market share is at an all-time high. Industry watchers have been scrutinizing Ulta’s prestige business, which Jefferies said is vulnerable.
“The prestige makeup composition at Ulta is heavily weighted towards legacy brands (e.g. Clinique, Estée, even MAC), which, while they’ve been gradually losing share for years, diversification efforts have yet to prove successful. Ulta’s moves to strengthen their brand mix has been more focused on small unproven brands, while competition (Sephora and Amazon) has been relentlessly adding zeitgeist emerging brands, some of which are exclusives. Additional distribution points for prestige beauty and the growth of Amazon’s prestige beauty business have also been pressuring Ulta. We expect this pressure to continue and even intensify as new retailers, like Walmart, enter the prestige beauty space.”
