Ulta Beauty (ULTA) has announced that chief executive officer (CEO) Dave Kimbell is retiring from the cosmetics company where he has worked for the last decade.
Kimbell will also step down from the company’s board of directors and is being succeeded in the CEO role by Ulta Beauty’s current President and Chief Operating Officer Kecia Steelman.
In a news release, the company said that Kimbell will stay on at Ulta Beauty in an advisory role through the end of June this year.
Ulta Beauty’s stock rose 3% in after hours trading on news of Kimbell’s retirement and the CEO succession.
The company’s share price has underperformed the broader market recently, declining 11% over the past 12 months even as the benchmark S&P 500 index rose 25%.
Ulta Beauty’s sales and profits have been under pressure as consumers turn away from the cosmetics retailer amid high inflation and elevated interest rates.
Analysts say the company is viewed as a luxury, discretionary purchase at a time when consumers are focusing on staples such as food and rent.
Ulta Beauty also forecast that its fourth quarter 2024 comparable sales will increase modestly and its operating margin will be above the high-end of its previously expected range of 11.6% to 12.4% due to strong holiday sales.
The stock of Ulta Beauty is currently trading at $431.30 U.S. per share.
