(MENAFN- AsiaNet News)

• The company reported better-than-expected third-quarter earnings on Thursday and raised its annual forecast on strong holiday-season demand.
• In January, Ulta named Kecia Steelman, the company's Chief Operating Officer, as the new CEO, succeeding Dave Kimbell, who is retiring after 11 years.
• This year, Ulta and Target announced that they had mutually agreed not to renew the Ulta Beauty at Target shop-in-shop partnership upon the current agreement's conclusion in August 2026.

When Ulta Beauty started the year, the company began on a shaky note with changes at the top helm and an eventual turnaround plan to boost demand as consumers grew cautious amid an uncertain macro environment beginning to take shape under U.S. President Donald Trump.

The beauty retailer's stock has soared nearly 23% this year under a new CEO, amid steady revenue and profit growth, driven by efforts to broaden the company's offerings to include celebrity brands and expand globally.

A Year Of C-suite Changes

In January, Ulta named Kecia Steelman, the company's Chief Operating Officer, as the new head. Steelman is succeeding Dave Kimbell as the chief executive officer. Kimbell retired after 11 years.

Steelman was named chief operating officer in 2023 after serving in a variety of executive roles with the company since 2014. She has been known for her role in driving beauty sales and has fostered strong external relationships.

Following Steelman's appointment, the company also announced Lauren Brindley as Chief Merchandising and Digital Officer, effective June 3, with responsibility for merchandising, ecommerce, wellness, and marketplace strategies. Brindley brings more than two decades of global beauty and retail expertise to Ulta and was most recently CEO of Revolution Beauty.

Steelman also named the company's Chief Store Operations Officer, Amiee Bayer-Thomas, to the newly created chief retail officer role.

With a plethora of C-suite changes, Ulta's revenue year-over-year has seen steady growth. Chart: Fiscal AI

Ulta Beauty Unleashed

Under Steelman, the company has launched a turnaround plan called“Ulta Beauty Unleash” to revive growth and deliver better brand experiences.

In her first earnings call in March, Steelman said that the plan was to drive core business growth, scale new accretive businesses, and realign the company's foundation for the future. 

“I've made organizational changes to streamline decision-making and align our teams around guest entry goals, and I've leaned in where we have immediate opportunities to improve our execution,” Steelman said.

The company, which has been offering Fenty Beauty by Rihanna, has now expanded its product line to include Beyoncé's Cecred. Ulta also has a UB Marketplace to tap into demand for new skin care and beauty products in the United States.

“The investments to support our Ulta Beauty Unleashed strategy are fueling our strong top-line results,” Steelman said on Thursday in a post-earnings call.

Target, Ulta Break Up

In August, Ulta and Target announced that they had mutually agreed not to renew the Ulta Beauty at Target shop-in-shop partnership upon the current agreement's conclusion in August 2026.

The shop-in-shop partnership launched in 2021 with Ulta Beauty at Target, expanding access to prestige beauty and offering beauty enthusiasts the convenience of linking their Ulta Beauty Rewards and Target Circle accounts.

Global Expansion Accelerates

In early November, Ulta announced the opening of its first store in the Middle East on Nov. 7 at The Avenues in Kuwait. Following the Kuwait opening, Ulta and Alshaya Group will continue their regional expansion with new stores at the Mall of the Emirates in the UAE in January and the Dubai Mall in March next year.

Ulta said it will also debut in Saudi Arabia, opening a store at the Red Sea Mall in March 2026.  In July, Ulta acquired a British beauty retailer, Space NK, marking its entry into the UK market.

The company also entered the Mexican market through the official opening of its first stores in September, marking the brand's brick-and-mortar international debut.

Wall Street's View

Neil Saunders, GlobalData's Retail analyst, said that the quarterly results on Thursday are a testament to the increased effort the business has put into injecting new brands and products into the assortment – including more exclusive lines.

“This has not only created interest and stimulated more impulse buying, but it has also fed the increasing desire for discovery among consumers,” he added.

Ulta has also relied on social media such as TikTok and Instagram to attract customers. The company has ensured it offers a variety of product lines online and drives engagement.

“Ulta has also improved the website experience – something that is particularly important given the rise of online beauty through platforms like Amazon and TikTok,” Saunders said.

Bob Lang, chief options analyst at Explosive Options, said that the focus on sales and distribution helped Ulta to make its numbers in the last two quarters.

Barclays on Friday noted that the company's third quarter also beat on margin with "robust" comparable growth of 6.3%, driven by higher average ticket and increased transactions.

Retail sentiment on Ulta jumped to 'extremely bullish' from 'bullish' territory a day ago, with message volumes at 'extremely high' levels, according to data from Stocktwits.

In the last 24 hours, the retail user message count on Stocktwits jumped 3,850% following the company's better-than-expected quarterly results and raised annual forecasts.

Shares of Ulta Beauty have gained nearly 35% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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