Ulta Beauty CEO Kecia Steelman on What’s Driving Beauty in 2026—and What Still Weighs on the Consumer

After a turbulent year, retail leaders are entering 2026 with cautious optimism—and few categories are as resilient as beauty. In a conversation with Ulta Beauty CEO Kecia Steelman, she shared what’s exciting her most about the year ahead, where consumers are still choosing to spend, and how Ulta is thinking about technology, AI and focus amid ongoing uncertainty.

Below, Steelman breaks down what’s driving growth in 2026, what’s giving her pause, and how Ulta is prioritizing focus over noise. This interview has been edited for clarity.

Q: Everyone feels relieved to have made it through 2025. What are you most excited about this year—and what concerns you?

Kecia Steelman: What excites me most is the continuation of the investments we made in 2025 carrying into 2026. The consumer is still prioritizing beauty, and that’s incredibly energizing. There are a few categories we’re especially excited about—longevity, particularly at the intersection of hair and skin, and the idea of truly investing in yourself. Wellness is another area that continues to gain momentum. And K-beauty is just on fire in the U.S., especially with younger consumers.

On the concern side, the world still feels heavy. That’s hard to ignore. The flip side, though, is that Ulta Beauty can be a place where people come to feel like their best selves. Still, the broader environment weighs on consumers—and on all of us.

Q: How are you seeing that show up in consumer sentiment and spending? Are shoppers pulling back, or shifting priorities?

KS: We’re absolutely continuing to invest in wellness. Beauty and wellness are really starting to converge, and we see wellness as a natural extension of what we already do. Even as some consumers pull back overall, they’re still prioritizing themselves. Beauty and wellness are viewed as affordable luxuries—ways to care for yourself without overextending.

K-beauty is a great example of that shift. Younger consumers in particular are leaning in, and we expect that momentum to continue.

Q: There’s so much conversation right now about technology and AI. How is Ulta thinking about tech investments?

KS: AI is here today, no question—but I think there are two sides to it. There’s AI that helps us run the company more efficiently, like leveraging large language models. And then there’s more agentic AI that can help educate the consumer, simplify the shopping journey, and even bring new guests into the brand.

We’re continuing to invest in our technology platforms, but we’re also very focused on prioritizing the tools that really make a difference for us. You can’t do everything at once, and there’s a real human element to consider. You have to balance how much change your teams can absorb while still moving the business forward thoughtfully.

Q: Social is obviously huge for beauty. Which platforms are you prioritizing, and how do they connect back to stores?

KS: Social is where connection, education and learning really happen in beauty today. We’re deeply engaged on Instagram and TikTok, and YouTube remains incredibly important—both for short-form and long-form content, especially tutorials.

Consumers want to learn, discover and feel confident, and those platforms play a major role in that. You’ll continue to see us active across all of them as we bring inspiration and education together, both online and in-store.

Q: Finally, what advice would you give other CEOs and retail leaders trying to navigate all the uncertainty right now?

KS: I’m a big believer in focusing on what I can control and minimizing noise and distraction for my team. Keeping our associates and our guests at the center of every decision is critical. If we stay focused on that—and keep the external noise at arm’s length—we’ll be working on the right things and avoiding unnecessary distractions.