Ulta Beauty's Strategic Reinvention Under Kecia Steelman: A High-Growth Retail Play in a Digital-First Beauty Market

In the rapidly evolving beauty and wellness sector, Ulta Beauty has emerged as a standout performer, driven by the visionary leadership of CEO Kecia Steelman. Under her stewardship, the company is undergoing a strategic reinvention that leverages artificial intelligence (AI), hyper-personalization, and aggressive global expansion to position itself as a dominant force in 2026. With a clear focus on technology-driven customer engagement and international market penetration, Ulta is not merely adapting to industry trends but redefining them.

AI and Personalization: The New Engine of Customer Engagement

Ulta's 2026 strategy hinges on transforming customer interactions through AI and generative AI technologies. Steelman has emphasized the need to move beyond traditional one-to-many marketing to a one-to-one engagement model, where data analytics and machine learning predict individual preferences and behaviors. A key example is the 2025 overhaul of Ulta's mobile app, which introduced a "Virtual Beauty Advisor" feature. This AI tool uses loyalty program data to analyze skincare routines and recommend products tailored to each user's needs.

The company is also exploring agentic AI to enhance both customer and employee experiences. By deploying AI agents to assist associates in real-time interactions, Ulta aims to improve service efficiency and accuracy. Steelman has underscored the importance of building a robust technology infrastructure and organizational culture to support these innovations, ensuring that AI adoption is not just a technological upgrade but a strategic transformation.

Global Expansion: Unlocking New Markets

While Ulta's U.S. business remains its core, Steelman has aggressively pursued international growth to diversify revenue streams and capitalize on untapped demand. The acquisition of the UK-based luxury retailer Space NK in 2024 and a joint venture in Mexico have been pivotal. By 2025, Ulta had opened its first stores in Mexico City and Guadalajara, leveraging existing brand recognition in these markets. Steelman noted that international consumers already exhibited strong awareness of Ulta's products, suggesting that physical expansion could accelerate adoption.

The company's global strategy is paying off. In the first nine months of fiscal 2025, international markets-including Canada, the Middle East, and the UK- contributed to Ulta's 8.8% year-over-year sales growth, with net sales reaching $8.5 billion. This momentum supports the revised 2026 revenue forecast of $12.3 billion, up from an earlier range of $12 billion to $12.1 billion.

Strategic Synergies: Ecosystem Scalability and Margin Growth

Ulta's "Ecosystem Scalability" strategy, which prioritizes proprietary assets over third-party partnerships, further amplifies its competitive edge. By integrating AI-driven personalization with direct-to-consumer digital tools and in-store experiences, the company is creating a self-reinforcing ecosystem that enhances customer loyalty and margins. Steelman's three-pronged approach-optimizing the core U.S. business, developing high-margin ventures, and realigning operational foundations-ensures that growth is both sustainable and scalable.

Investment Implications

For investors, Ulta's strategic reinvention under Steelman presents a compelling case. The company's ability to harness AI for hyper-personalization aligns with broader consumer trends toward digital-first engagement, while its global expansion taps into high-growth markets with underpenetrated demand. With a revised revenue outlook and a clear roadmap for technological and geographic diversification, Ulta is well-positioned to outperform peers in 2026.