Ulta Beauty starts 2025 with a shake-up in its executive ranks, announcing Dave Kimbell will retire as Chief Executive Officer after 11 years and will step down from the company’s Board of Directors. Kecia Steelman, President and Chief Operating Officer, will immediately step into the role and replace him on the Board of Directors. This follows the announcement at the end of last year that Chief Merchandising Officer Monica Arnaudo would also be retiring this spring.
Industry sources say Steelman is well respected within the Ulta Beauty ranks. She has been with the company since 2014 and was named President and Chief Operating Officer in 2023 after serving in a variety of executive roles. In her new role, Steelman will lead the largest brick-and-mortar beauty retailer in the US with 1,437 retail stores across 50 states.
Kimbell shared in a statement. “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.”
The move comes at an unusually tough financial time for the retailer, which has experienced headwinds in an increasingly competitive environment, and slowing sales growth. In an investor conference last spring, Kimbell warned of a slowdown in the category.
Ulta Beauty cut its guidance twice last year before raising it in December. The retailer raised its fiscal fourth-quarter outlook because of “stronger-than-expected performance during the holiday season.” Based on quarterly sales performance, the company now expects comparable sales to increase modestly, and the 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 for the fourth quarter and fiscal 2024 on March 13, 2025.
Shares of Ulta were up about 2% on the news, closing at $431.30 on January 6, 2025, about 25% less than its 52-week high.
