Ulta Beauty is beginning 2025 with a new look in leadership. On Monday, the retailer announced the retirement of CEO Dave Kimbell and named Kecia Steelman as his replacement, effective immediately. Kimbell will remain as an advisor to the company until June 28. Steelman will also join Ulta’s board.
“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,” Kimbell said in a statement. After joining the company in 2014, he was named CEO in 2021.
In her new role, Steelman will lead the largest brick-and-mortar beauty retailer in the U.S., with Ulta counting 1,437 retail stores across 50 states. She joined Ulta in 2014 and was named president and chief operating officer in 2023. Her resume also includes stints at Target and Family Dollar.
“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,” Steelman said in a statement shared with Glossy. “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.”
Ulta is not the only beauty giant to change up its C-suite for the new year. On January 1, Stéphane de La Faverie assumed his role as CEO of The Estée Lauder Companies, succeeding Fabrizio Freda. Akhil Shrivastava replaced Tracey T. Travis as evp and CFO in November.
Fragrance has proved a standout category at Ulta in recent months, particularly in the male and unisex categories. The sector’s sales grew in the high-single digits in the third quarter of 2024, according to Ulta’s most recent earnings report. The retailer has increased its fragrance offerings with new indie brands like Noyz and Snif along with influencer and celebrity launches from the likes of Danielle Bernstein of WeWoreWhat and Billie Eilish. Makeup sales, meanwhile, have stagnated, with growth dropping to the low-single-digit range in the third quarter.
Ulta faces competition from Sephora for the hot fragrance market. Sephora has upped its fragrance offerings with brands including Phlur and Kayali in recent years, while a handful of fragrances in Ariana Grande’s namesake line joined the competitor in July — the remainder of her scents remain exclusive to Ulta. Mass retailer Target is also upping its fragrance offering and is targeting teen boys with the recent launch of a male line within its in-house fragrance brand Fine’ry.
Following a strong holiday sales season, Ulta has adjusted its outlook for the fourth quarter of 2024. The retail giant now anticipates a modest increase in its comparable sales and expects its operating margin to surpass the high end of its previously expected range of 11.6-12.4% of sales. Ulta plans to release its next quarterly earnings report on March 13.
