Kecia Steelman on ULTA’s Global Expansion and Her Dream Collab | Leadership Next

0:00I often say I have a PhD in life. I was poor, hungry, and determined. Hi, everyone. Welcome to Leadership Next, the podcast about the people and trends that are shaping the future of business. I'm Diane Brady. And I'm Kristen Stoller. And this week, Kristen, Ulta Beauty straight from the MPW Summit in Washington. Yes. So we spoke with Keisha Steelman, who is Ulta's CEO at our Most Powerful Women Summit in Washington, D.C. And we got to speak to her 10 months into the job. She transitioned from COO to CEO. So we got to hear a lot about what she was doing, what the transition was like, and her past, which is really interesting.

0:39I love her past. So she's from a very modest background. And she literally worked her way up from the shop floor, in essence, at Target to where she is today, which I think gives her a real down-to-earth kind of appeal. She was a mother at a very young age. It felt like we were getting somebody who truly represents mainstream America, which this is a mainstream America brand. I think so. And right after this, her and I did a conversation on stage. And I got the whole crowd clapping when she was talking about she'd been passed over for promotions in her career. And she said, I always live by this motto, it's better not bitter, and got thunderous applause.

1:17And let's point out, to our listeners, MPW means most powerful women. So that would get a lot of applause in that crowd. I mean, what is the appeal of this brand in your mind? When I hear Ulta, I think of social media. I think of Gen Z. I think of Gen Alpha. They are really loving this brand, loving going to the stores, making videos. And Ulta has been really smart about who they choose to partner with. I mean, last summer, they partnered with Beyonce. She had a great story for us about meeting Beyonce and the Cowboy Carter tour. And these partnerships, I think, are essential to what makes them resonate with such a young audience.

1:50Lots to learn. She's on an international expansion. She's facing huge headwinds with tariffs and other challenges. And of course, beauty is a competitive space. So I hope everybody enjoys and let's have a listen. Cities are home to the majority of the world's population and account for 80 % of global GDP. That makes the health and sustainability of our cities critical to creating a prosperous future. And of course, business has a role to play. Jason Gerzadas, the CEO of Deloitte US, is the sponsor of this podcast and he joins us now. Jason, great to see you. Great to see you, Diane. Thanks for having me.

2:27So how should businesses play a role in creating more vibrant and sustainable cities? It's clear to me that their health of cities is inextricably linked to businesses' viability and success. I think it starts with an awareness or a recognition of that mutually dependent reality. I think the how is around collaboration. It's bringing to bear the capabilities of businesses to support cities, renewal and innovation, to understand the criticality of cities' role around economic prosperity, innovation, as well as cultural exchange. Jason, could you give us some examples of successful urban transformation projects that have been driven by these innovative business practices?

3:12I'm proud to say that Deloitte, back in 2023, we've started an effort called YesSF here in San Francisco, where I live. The launch of YesSF with other business collaborators has brought together our competencies around stimulating interest amongst innovators to bring sustainability and technology innovation to benefit the city itself. Excellent. Well, that sounds like a very cool project. Thank you so much for sharing it with us. Thank you. Keisha, thank you so much for joining us here in Washington, D.C. at our Fortune Most Powerful Women's Summit. I am so excited to be with you here today. Thank you.

3:50So you're 10 months in. You transitioned from COO to CEO at an interesting time for the world. But just give us a sense. How is it going? What's your first 10 months been like? Well, I got to just start off by saying it has been so much fun. I feel like I have so many ways I have the dream job for so many young girls that are out there. You know, when I jumped into this role, really there were three things that I was really focused on. The first one was getting the right team. You have to have the right team around you, not only for today, but also for the future and our future growth. The second was really having decision-making rights and clarity around who makes the decision, making them with speed.

4:30And, you know, I often say spinning is my least favorite move. So, like, having the ability for the team to make decisions to move forward. And then the third, you know, is really around having a great strategy that everyone understands in the organization from that frontline associate all the way to the board of directors and the role that they play in it. I think that's allowed me to really hit the ground running since I've been here 10 months. And we've had a lot of great things happening and a lot of change, but it's been a lot of fun. You know, I noticed the stock price is doing very well.

5:02And it was funny because it had a little dip, you know, and then it went roaring back. and I always think that's the best way as a woman leader is to say, I'll show you. But obviously, you were COO, which I think of as sort of the shapeshifter of the C-suite. You take on all sorts of different operational roles. So tell us a bit about the difference when you get to be a CEO. Obviously, there's the top, but does it feel a lot different since you knew the operations so well to begin with? Yes and no. What I would say is that I do know the operations really well, and I know the people. I'm a people first leader, so I do know the organization.

5:37And I felt like I saw where there were opportunities when I stepped into the big role to be able to make some pretty immediate impacts. I'd say one of the big changes, though, is the more the external facing, how much time you're spending with the investment community, which I was doing that before, but not to the same degree that I am right now. Spending a lot of time with the brands. I was traditionally more on the operations side of the business. So I really started to convert, spending a lot more time with the senior brand leaders, Estee Lauder, L 'Oreal, LVMH, and then also some of our smaller brands too, to just have them get to know me, for me to come in with a fresh perspective.

6:16And I think that's actually been really refreshing. The way that we're going to market now as a collective group and team and cutting through some barriers, the brands are responding really well. So I'd say those are some of the shifts that I've had in roles. You know, Marshall Goldsmith wrote this book that says what got you here won't get you there. And if you know that, and it's really that the skills that get you into a CEO job aren't necessarily the skills that help you succeed in that role. Would you say that's the case? Anything personal come to mind? I think there's no finish line for learning, no matter what role you're in, whether it's a COO or a CEO position.

6:53So you've got to always be continuing to lean in and learn and challenge yourself to be even better. You know, the role from the COO to the CEO, the buck stops with you as the CEO. You also have to really learn how to manage with the board and to really leverage your board to really get the most out of them and help you be the best CEO you can be. I just think constantly learning and growing and being open and surrounding myself with fantastic people has always been critical to my success. And I believe it's going to be critical to my success in the CEO role, too. I want to talk about your global expansion because you announced you're expanding Ulta to Mexico.

7:35You're looking at the Middle East, which is really exciting. And you've got to travel to all of these places. So I'm curious, when you hear from customers and consumers in all of these markets, what do they want that's different than your beauty consumers here in the U.S.? What's so interesting is the role of social media has really changed and how the world has come much closer together than we've ever been before. And when, for example, I'm in the Middle East, they are beauty gurus there. They love beauty. They've got time to spend on beauty. They're experts in this space. They love all the trends that they're seeing in the United States.

8:11So I see a lot of what they want is what they're seeing already happening here. You know, color is really important. They are very aligned with the fashion industry. So we just had some recent runway shows come with some new designers like Chanel, Dior. So what you're seeing translate on the runway definitely translates into the looks that they're desiring and they're wanting to. But I had so much fun. I had a couple of small groups with influencers and prominent people within the industry that were females. And sitting at those tables, it was kind of refreshing because it doesn't matter how far away around the world I was.

8:50we were talking about some of the same things that women are talking about here in the United States. Husbands, makeup, trends. Before we get to husbands, I do want to ask about makeup because I feel like, first of all, my look, sometimes I worry is cryogenically frozen from a certain age of when you start getting into makeup. But what are the trends right now? Here we are, late 2025. Give us a sense then of what are the tastes that we should be keeping an eye on. Yeah, I think there's, first of all, you look fantastic. Thank you. And so do you. Everyone's makeup here, 100%. I would just say that there's a couple trends that we're seeing.

9:29There's still a little bit of the no makeup makeup look, which actually takes quite a bit of makeup to have that look. Too much time. Yeah, it really does. But then we're seeing glam come back. So it's called like a modern glam. So it's a little bit heavier makeup usage on the eyes, which we at Alte Beauty really love to hear because you have more products that you need to use. A little bit softer on the cheeks and a nice pop on the lips. And we're seeing different colors being used on lips too. People are getting a little bit more creative. You'll see even like a purplish type of gloss. So they're really pushing the boundaries a little bit more on lip.

10:05And we're also seeing a younger consumer get engaged with makeup, with skincare, more than what we've ever seen before. So 13 year olds, not uncommon for them to be definitely doing a lot more makeup looks, but individuals as young as 8, 9, 10 on skin. And one of the things that I feel is really important for us at Ulta Beauty is to be very responsible in making sure that we're educating not only that consumer, but the parent also in what's good, safe skincare for that younger generation to be using. But I love them starting with us that young because we're wanting to keep them with us for the lifetime.

10:43So that lifetime value when you're starting at eight is much greater than when you were starting in your mid-teens before. Well, that's a really good point because I, you know, I'm on TikTok, Instagram. I see all these young girls, like you're saying, eight or nine, going to your stores using your products. But I also think like you're eight. Why do you need like an anti-aging skin serum? Eight-year-old girls want to look good too. But it's like, what's the response of, like, how do you feel? I know you said responsible, but like, how do you, how do you market toward those young girls without saying like, oh, you, you actually don't need this, but you should buy?

11:17I don't know. How do you think about it? Well, I think that we want to be very socially responsible and we want to be a destination for everyone, no matter what their age is. You know, one of the other trends that we're really seeing is these young boys and young men coming in with their friends and they're engaged in cologne and layering colognes. They like to create their own signature scent by mixing a couple different scents together. So I love seeing that trend too. Young girls are into cologne too or fragrances, But this young men trend is also something that I'm seeing it change like right in front of me.

11:51And I think, again, it's the power of social media and TikTok. What are your personal thoughts about these beauty standards being imposed on younger girls through social media? And have you ever made a decision to say, oh, I'm not going to carry that product or line or something because you don't think it's responsible? I wouldn't say that it's never that we've not decided to carry a product or line. we have a responsibility for education and education to me for our associates to make sure that they know what's safe to use for everyone. That's a responsibility that we really have in our stores and that we do invest a lot in our training and education.

12:28We want to be accessible for everyone against all price points and age at the same time. But we are really educating the the parents. And you know when we see somebody that's trying to buy a category, we are definitely encouraging them to look for a different alternative. Clean and conscious beauty is some an area that we're continuing to lean into. So yeah I mean the fact that we do carry everything from low to luxe, clean to those that are chemical based, we have something for everyone in the store. Has the male consumer been like a big growth area for you? Yeah I would say not like what I'd say heavy makeup but concealer, you know, now that these Zoom calls or your front and center more and more, there's filters that can go on.

13:14They still like that look after they're off of the Zoom calls where they want to have that flawless skin look. So we see them investing in skin, maybe a little bit more concealer. That's where I'm seeing that trend, a little bronzer. A little bit of that doesn't hurt anybody. I want to go back to your pre-alta days, actually back to growing up, Iowa, on a farm. I lived on a farm for a year, so it doesn't really count, but I still think it's a formative time of my life. Talk a little bit about how, you know, growing up in the family that you did shaped you as a CEO. Yeah, well, first of all, I couldn't be more proud of being from where I'm from a small town called Mediapolis, Iowa.

13:58I didn't necessarily grow up in a farm, it was more of a farming community. I'd say we were probably poor to middle class. All my friends were the same, so we didn't know anything different. Being really grounded and humble with my beginnings, I wouldn't change that, as I said, for the world. You know, we made our own fun. In fact, a quick fun story is, I made my own store in the basement. So I started as a retail entrepreneur very early in my career. What were you selling from your basement? I was six years old. You know, anything that I could steal from my mom. As one does. Anything I could take from my mom and put a price tag on it, I'd invite my friends over.

14:37And so I think retail was in my blood from early on. But again, when I go back home, my mom still lives in the home I grew up in. My sister lives about 20 minutes away from her. It brings me a sense of just being very grounded. and I really appreciate that. I'll never forget that. And then how did you get from there to Target? Tell us about that journey. Yeah, I started at Target making$8 an hour and I took it as a job. What did you do? I was the men's and ready to wear team leader is what they called it. So I had floor responsibility for those areas of the business. And then I just loved what I was doing and I was working so much overtime that they promoted me.

15:14I think if I do the math now, I was actually making less money because I was making more money out of overtime. But my career just took off and I spent 12 years at Target. And I'm so thankful that I started my career there because they really invested in you as an individual on your soft leadership skills. And I'd say that's where I really fine honed my leadership capabilities of how to build great teams and what that looked like and how to grow yourself as a leader too, not just at the task, but also at the personal development. You know, I think about what you hire for when you're looking for leaders because there's so much anxiety now.

15:52I know certainly with my kids, I sent them all to Canada because it's very cheap. But around, you know, going to the right schools, getting an MBA, being this, being that, what do you look for, especially knowing what made you stronger? Do you look for those qualities in the people you hire? I often say I have a PhD in life. I was poor, hungry, and determined. And, you know, I think that keeps me also very grounded. I value education, though, for those that have been able to do it. I look for what I call the it factor in someone, someone that's hungry. Even when you go to school, after you graduate, that's just the beginning of a learning journey.

16:32We need to all be lifelong learners. So when I see individuals that have been blessed at having that opportunity for education, but understand the importance of continuing to learn and grow themselves and want more and are driving and striving for even more. Those are the people that I want to have on my team. I love that. Yeah. Do you have any mentors that have really helped you along the way? I have more what I call board of directors. I don't necessarily... A personal board of directors or your own literal board of directors? Well, I have both. I have both. I'm blessed to have a fantastic board of directors at Ulta Beauty, but I have a personal board of directors that I have a group of people that I call for different things.

17:14That really kind of happened over the last few years. But the one person that I call no matter what is my mom. My mom is someone that is still very grounded. She started her own business herself in this small town and very driven. And she'll tell me the truth, which you need those truth tellers in your life. And she's that for me. And you're a grandmother. I am. I'm a proud grandmother of three with another one on the way. Any thoughts that you had just in terms of, you know, you growing up in the business, you had your first child at 20, I believe. How did you mean, did that, how is that a factor in terms of the choices that you made?

17:53Well, I will say that, you know, early on in my career, I was often the only woman that was there. And I put that internal pressure of myself of being the first one in and probably the last one the leave to show that I was committed. I'm blessed that I have over 91 % women working for me, and I do not expect them to do that today. So I work really hard to pay it forward. You know, my thing with raising kids when I was young, if you try to be balanced all the time, you're going to fail. It's perfectly imbalanced, and you need to give yourself permission and grace for that. To me, it's really about the quality of time that you're spending, not the quantity.

18:32So when I was with my family i was really hyper focused and then i would go do what i needed to do with my career but you know my kids uh i couldn't be more proud they're all very successful individuals off my payroll which is really important um and you know they they're all in jobs that they love and i think being a role model because i loved my job i really did i love retail that's what's kept me in it for so long having them see a role model of someone that worked really hard but loved what they did at the same time, I think encourage them to get into the right profession for themselves. I want to talk about the retail industry and the beauty industry, both really hard spaces, especially with beauty.

19:13You have all the influencers out there selling things today. You have Amazon, you have Sephora, you have all these other people that you're competing with. How do you stand out in this really crowded market? Well, what I will say is beauty is what we do. I mean, there's a lot of people that come into beauty that participate in it. But this is our DNA. Beauty and wellness is 100 % our DNA. And for us to have everything from low to lux, from a price point, services as a part of the component, everyone who works in our stores, they are just beauty enthusiasts and super passionate about the business and helping people feel their best versions of themselves.

19:51When I look at the, you know, we've been at this for 35 years. We just celebrated our 35th anniversary. You know, you look at the evolution of like when I started, it was all things beauty all in one place. It was a place that sold a lot of things. Then we transitioned to the possibilities are beautiful. It's more about what possibilities can we create for you as a consumer. So it took this more of an emotional journey. And now we're our new theme, which is televised right now, our new commercials are just out is beauty happens here. We're a place where you can experiment and play an emotional journey.

20:30It's personalized to you. We happen to have everything that you would possibly need or want, but it's that natural journey of evolution for us. It's true to who we are at the core as a retailer. That's why I think my job is the best job ever. It's because my job is to help make people feel really good about themselves. When my associates have bad days, I'm like, we've got to readjust here because our jobs are to make people feel really good about themselves. I can think of a lot worse jobs out there than that. Yeah, it's hard to get a great makeover with a depressed beauty consultant. I totally believe that.

21:05But I think there's also the hard decisions are what shape us as leaders, and I'm thinking about what didn't work. I mean, one thing that comes to mind, I don't know the back story, is when you did this partnership with Target, what did you learn from that? Because I know that unwound. Any thoughts as to how that shapes your direction going forward? I will say that I'm very proud of our partnership with Target and what we learned in a short period of time. But, you know, beauty waits for no one, retail waits for no one, and the world evolves very, very quickly. Our Ulta Beauty Unleashed plan is where we're really wanting to lean into.

21:41And this was a mutual decision between Target and ourselves to move in a different direction. It wasn't that anything necessarily big happened. It was just the evolution of where we are in the partnership. And I am so proud of us. You know, we have a very clear plan with the Alta Beauty Unleashed strategy focusing on our core margin of creative businesses and really our foundational, you know, excellence all the way around the business that it's much better for me to really pivot and focus on that. I think that's going to be what helps our growth story in the future and also continue to drive share for our shareholders.

22:17And can you, sorry, define what Ultra Beauty Unleashed means for us not in the know? Absolutely. I get a little close to it sometimes. But so it's really three parts to it. The first is about driving our core businesses. So when you think about like brand building and we've got 46, almost 46 million loyalty members, that personalization, adding digital components to it. It's really strengthening our core model as you see it today. And then the second piece of that is really, you know, margin of creative businesses like wellness. Wellness is a 400 plus, you know, billion dollar business that it's highly fragmented.

22:55I feel like we have a right to really lean in and to grow this business. And our guests trust us. We're a trusted retailer in this space. So we're expanding there. we've got UB Media which is our retail media network leveraging the 46 million loyalty members we have how do we market to them how do we help our brands market to them that along with non endemic marketing which means like companies out there like Hulu we've advertised to Hulu some of you know to our guests so that's that's just a way that we can continue to drive our business. The third is Marketplace, which we just announced officially today.

23:35We launched our Marketplace, which has a hundred brands on it. It's a closed Marketplace, which means our buyers are going through these products just like they would if they were coming into our stores. You can earn your loyalty points. It's seamless, frictionless shopping. You can return the products to stores. So really super excited about that announcement today. And then the fourth, but not least, is international expansion. We've always been a U.S.-based company, and by the end of this year, we will have gone from being in the U.S. only to six countries, which is very, very, very exciting.

24:08But from a product point of view, you've obviously faced the challenges with tariffs and some of the other just general headwinds people are seeing, the dollar falling. How are you dealing with that? The tariff impact to us is a little bit less from a direct perspective. We have some components. You know, our Alta Beauty collection is imported. So the direct import on tariff, you know, pressure for us is not as high as what you're hearing in like soft goods type companies. Now, some of our brands, of course, you know, that's some of the pressure that we're seeing, but they haven't necessarily put that price pressure yet on the consumer.

24:48Now that could change but we're not seeing it a lot of our products especially in the prestige are msrp priced and we're not seeing it yeah so they're set pricing for all retailers we're not seeing anyone take that leap yet with the exception of one company elf came out and said that they were going to take a price increase but they were more of an entry price point already so more of the higher end brands i think they're working internally with how they can take costs out of their model to not have to put that, you know, consumer price pressure back on. And then nobody wants to be the first. So we're seeing normal price changes right now.