ULTA CEO Kecia Steelman on Her Dream Collaboration | Leadership Next

Key Concepts

Leadership Transition: Moving from Chief Operating Officer (COO) to Chief Executive Officer (CEO).
Ulta Beauty's Brand Appeal: Resonance with younger demographics (Gen Z, Gen Alpha) through social media, influencer partnerships, and in-store experiences.
Global Expansion: Ulta Beauty's strategic move into international markets like Mexico and the Middle East.
Beauty Trends: Current and future trends in makeup (modern glam, lip color innovation) and skincare, including engagement from younger consumers.
Social Responsibility in Beauty: Educating consumers and parents on safe skincare and makeup practices for younger demographics.
Male Consumer in Beauty: Growing engagement of men in beauty and grooming products, particularly skincare and fragrance.
Career Journey and Background: The impact of a modest upbringing and early career experiences on leadership style.
"It Factor" in Hiring: Valuing hunger, determination, and a commitment to lifelong learning in potential employees.
Mentorship and Support Systems: The importance of a personal "board of directors" and trusted advisors.
Work-Life Balance for Women in Leadership: Strategies for managing career and family, emphasizing quality over quantity of time.
Competitive Retail Landscape: Ulta Beauty's strategies for differentiation in a crowded market against competitors like Amazon and Sephora.
Ulta Beauty Unleashed Strategy: A multi-faceted plan focusing on core business growth, margin-accretive ventures (wellness, media), marketplace expansion, and international reach.
Tariffs and Economic Headwinds: Ulta Beauty's approach to managing supply chain challenges and pricing pressures.
Influencer Marketing Evolution: Leveraging creators, collectives, and internal associates as brand ambassadors.
Personal Beauty and Wellness Routines: The CEO's approach to self-care amidst a demanding schedule.
Future Beauty Trends (2026): Predictions for heavier makeup usage, vibrant colors, and continued focus on skincare.
Advice for Aspiring Leaders: Emphasizing self-grace, preparation, continuous learning, and embracing new opportunities.

Kesha Steelman: Leading Ulta Beauty Through Growth and Evolution

This summary details insights from an interview with Kesha Steelman, CEO of Ulta Beauty, conducted at the Fortune Most Powerful Women (MPW) Summit. The discussion covers her transition to CEO, Ulta's brand strategy, global expansion, evolving beauty trends, and her personal leadership philosophy.

Leadership Transition and Early Career

Kesha Steelman transitioned from COO to CEO of Ulta Beauty approximately 10 months prior to the interview. She describes her background as modest, having worked her way up from the "shop floor" at Target. This "down-to-earth" appeal is seen as representative of mainstream America, aligning with Ulta's brand identity. Steelman shared a personal motto that resonated with the audience: "It's better not bitter," reflecting her experience of being passed over for promotions.

When asked about the difference between being COO and CEO, Steelman acknowledged her deep understanding of operations and people as a "people-first leader." However, she highlighted a significant shift towards a more external-facing role, involving increased engagement with the investment community and senior brand leaders from companies like Estee Lauder, L'Oreal, and LVMH. This fresh perspective aims to cut through barriers and improve go-to-market strategies. She also referenced Marshall Goldsmith's concept that "what got you here won't get you there," emphasizing the continuous need for learning and adapting skills for the CEO role, particularly in managing the board and leveraging their expertise.

Ulta Beauty's Brand Appeal and Consumer Engagement

Ulta Beauty's appeal is strongly linked to its connection with younger demographics, particularly Gen Z and Gen Alpha, who are actively engaging with the brand on social media. The company's strategic partnerships, such as the one with Beyoncé, are crucial for resonating with this audience. Steelman recounted a positive experience meeting Beyoncé, highlighting her as a "great brand founder."

Global Expansion and Consumer Preferences

Ulta Beauty is embarking on international expansion, with plans for Mexico and the Middle East. Steelman noted that despite geographical differences, consumers in these markets share a strong interest in beauty trends seen in the US. Color is particularly important, with a close alignment to the fashion industry, drawing inspiration from recent runway shows by designers like Chanel and Dior. She found common ground with women in these regions, discussing similar topics like husbands, makeup, and trends, underscoring a universal connection.

Evolving Beauty Trends

As of late 2025, Steelman identified two key makeup trends:

The "No-Makeup Makeup" Look: This trend, while appearing effortless, requires significant product application.
Modern Glam: Characterized by heavier eye makeup, softer cheeks, and a pop of color on the lips. This trend is beneficial for Ulta as it drives product usage.

Lip color innovation is also a significant trend, with consumers experimenting with bolder shades and glosses. A notable observation is the increasing engagement of younger consumers (ages 8-13) with both makeup and skincare. Ulta Beauty prioritizes educating these young consumers and their parents on safe and appropriate product choices. The brand also sees a growing trend of young boys and men engaging with fragrances, particularly layering colognes to create signature scents, a trend largely driven by social media platforms like TikTok.

Social Responsibility and Product Curation

Ulta Beauty emphasizes social responsibility, aiming to be a destination for everyone regardless of age. While not explicitly stating they've refused to carry a product line due to responsibility concerns, Steelman stressed the importance of educating associates on product safety for all age groups. They actively educate parents and encourage alternative choices when a consumer is looking for a product category that might not be suitable for their age. The company is also leaning into "clean and conscious beauty."

The Male Consumer in Beauty

The male consumer segment is identified as a growth area, particularly in skincare and concealer, driven by increased visibility on video calls and the desire for a flawless complexion. Bronzer is also seeing some adoption.

Personal Journey and Leadership Philosophy

Steelman's upbringing in Minneapolis, Iowa, in a "poor to middle class" farming community, instilled in her a sense of being grounded and humble. She humorously recalled starting her entrepreneurial journey at age six by setting up a makeshift store in her basement, selling items "stolen" from her mom. Her career began at Target, where she started at $8 an hour as a team leader for men's and ready-to-wear. Target's investment in individual development and soft leadership skills was instrumental in honing her capabilities.

When discussing hiring, Steelman values what she calls the "IT factor," characterized by hunger and determination, stating, "I have a PhD in life. I was poor, hungry, and determined." She believes in lifelong learning and seeks individuals who, even with educational advantages, understand the importance of continuous growth and strive for more.

She doesn't have a single mentor but rather a "personal board of directors" and relies heavily on her mother, who is a grounded and driven entrepreneur herself, for honest advice. Steelman is a proud grandmother of three, with another on the way. Reflecting on her experience as a young mother (having her first child at 20) and often being the only woman in early career settings, she learned to put in extra effort to prove her commitment. Now, with over 91% women in her workforce, she emphasizes not expecting the same level of sacrifice and focuses on paying it forward. She advocates for giving oneself "permission and grace" for imperfect balance, prioritizing the quality of time spent with family.

Navigating the Competitive Retail and Beauty Market

In the highly competitive beauty industry, Ulta Beauty differentiates itself by emphasizing that "beauty and wellness is 100% our DNA." Their strategy involves offering a comprehensive range from "low to lux" price points and providing services. Their store associates are described as passionate beauty enthusiasts. The brand has evolved its messaging over 35 years, from "all things beauty all in one place" to "the possibilities are beautiful," and now to "beauty happens here," focusing on experimentation, emotional journeys, and personalization.

Ulta Beauty Unleashed Strategy

The "Ulta Beauty Unleash" plan is a core strategy with four key pillars:

Driving Core Businesses: Strengthening brand building, personalization, and digital components, leveraging their nearly 46 million loyalty members.
Margin-Accretive Businesses: Expanding into the wellness sector (a $400+ billion fragmented market) and developing UB Media, their retail media network, to market to loyalty members and assist brands. They also engage in non-endemic marketing with partners like Hulu.
Marketplace: A newly launched closed marketplace featuring 100 brands, allowing loyalty point accrual, seamless shopping, and in-store returns.
International Expansion: Moving from a US-only presence to six countries by the end of the year.

Managing Tariffs and Economic Challenges

Regarding tariffs and economic headwinds, Steelman noted that the direct impact on Ulta Beauty is less severe than for soft goods companies, although some brands face pressure. Prestige products are often MSRP priced, and manufacturers are working internally to absorb costs rather than passing them directly to consumers. While normal price changes are occurring, significant deviations from the norm have not yet been observed.

Influencer Marketing and Partnerships

Ulta Beauty employs three main strategies for influencer engagement:

UB Creators: Lower-funnel influencers who advertise and facilitate direct purchases.
Ulta Beauty Collective: A larger group focused on education and authentic product reviews, not direct sales.
Ulta Beauties: Internal associates who are trained and paid to act as external influencers, embodying the brand authentically.

Steelman believes in being present where social activity occurs, especially with younger consumers, and emphasizes authentic communication and engagement. When asked about a dream partner, she mentioned Taylor Swift, citing her social relevance and potential brand color synergies.

Personal Beauty and Wellness Routine

Steelman's routine prioritizes sleep and hydration. She emphasizes that internal well-being reflects externally, and good skincare is foundational for makeup application. She learns tips and tricks from professional makeup artists and enjoys experimenting with new innovations and products, though she admits the Ulta Beauty Collection lip gloss is a staple.

Predictions for 2026

For 2026, Steelman predicts a continued rise in heavier makeup usage, with vibrant and playful colors inspired by runway trends. Skincare regimens, which gained traction during COVID, are expected to remain strong, with even younger individuals adopting comprehensive routines, often influenced by social media.

Advice for Aspiring Leaders

Steelman offers two pieces of advice:

To her younger self: "Have a little more grace for yourself." She was a "hard-charging driver" and advises being kinder to oneself.
To the younger generation: "Prepare hard to finish easy." She stresses investing in education and experiences, taking diverse opportunities, learning from everyone, and challenging oneself to try new things when feeling bored or complacent.