Ulta Beauty CEO Dave Kimbell is retiring, and the company announced that the retailer’s chief operating officer, Kecia Steelman, will succeed him. The leadership changes, as per Ulta’s news release, are effective immediately, with Steelman also taking Kimbell’s place on the company’s board of directors.
In addition to the executive reshuffle, Ulta has revised its fiscal fourth-quarter outlook due to a stronger-than-expected performance during the holiday season. The company now expects a modest increase in comparable sales and an operating margin exceeding the high end of the previously projected range of 11.6% to 12.4% of sales. Initially, Ulta had forecasted comparable sales to range from a decline of 1% to flat.
Following the announcement, Ulta’s shares surged over 2% in extended trading. The beauty retailer has been navigating a challenging retail environment, with competitors like Macy’s and Kohl’s vying for a larger share of the beauty market amidst shifting consumer spending habits. Kimbell had cautioned about a slowdown in the beauty category at an investor conference earlier in the year.
Ulta has been striving to maintain its position as a leading beauty retailer by introducing new brands, hosting more in-store events, and enhancing its digital offerings. Steelman, who has been with Ulta for over a decade and assumed the role of chief operating officer in 2023, will now spearhead these initiatives.
Kimbell praised Steelman as “a strategic leader with a proven track record of driving operational excellence and delivering exceptional guest experiences while fostering a caring and inclusive culture.” Having joined Ulta in 2014 and appointed as CEO in 2021, Kimbell will continue to support the company as an advisor until June 28.
Ulta’s stock closed at $431.30 on Monday, approximately 25% lower than its 52-week high. The company is set to announce its fiscal fourth-quarter results on March 13. CEO changes have been on the rise across the business landscape, with U.S. public companies experiencing a record number of chief executive turnovers last year, including notable companies like Starbucks, Kohl’s, Nike, and Boeing.
