Individuals stroll previous an Ulta Magnificence retailer within the Manhattan borough of New York Metropolis on March 8, 2022.
Carlo Allegri | Reuters
Ulta Beauty CEO Dave Kimbell is retiring and might be changed by the retailer’s Chief Working Officer Kecia Steelman, the corporate introduced Monday.
Ulta mentioned in a information launch that the management modifications take impact on Monday. Steelman can even exchange Kimbell on the corporate’s board of administrators.
Together with asserting the manager shakeup, Ulta raised its fiscal fourth-quarter outlook due to “stronger-than-expected efficiency through the vacation season.” The corporate mentioned it now anticipates comparable gross sales will improve modestly and working margin might be above the excessive finish of the corporate’s earlier anticipated vary of 11.6% to 12.4% of gross sales. In early December, Ulta mentioned it anticipated comparable gross sales would vary between a decline of 1% and flat.
Shares of the corporate rose greater than 2% in prolonged buying and selling.
Ulta Magnificence has confronted a tougher panorama, as a variety of shops, together with Macy’s and Kohl’s, chase a much bigger piece of magnificence gross sales and as clients watch their discretionary spending. At an investor convention within the spring, Kimbell warned of a slowdown in the category.
In current quarters, Ulta has fought to take care of its spot as a high magnificence retailer by carrying new manufacturers, throwing extra in-store occasions and including extra digital instruments.
Steelman will now lead these efforts. The corporate’s incoming CEO has been with Ulta for greater than a decade and have become its chief working officer in 2023.
Within the launch, Kimbell described Steelman as “a strategic chief with a confirmed file of driving operational excellence and creating distinctive visitor experiences whereas fostering a caring and inclusive tradition.”
Kimbell, who has been with the corporate since 2014, grew to become its CEO in 2021. In a information launch, Ulta mentioned he’ll function an advisor to the corporate by way of June 28.
Shares of Ulta closed on Monday at $431.30, about 25% lower than its 52-week excessive.
Ulta Magnificence is anticipated to report its fiscal fourth-quarter outcomes on March 13.
That is breaking information. Please test again for updates.
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