Ulta Beauty CEO Dave Kimbell is retiring and will be succeeded by the retailer’s chief operating officer, Kecia Steelman, the company announced Monday.
Ulta said in a news release that the leadership changes take effect Monday. Steelman will also replace Kimbell on the company’s board of directors.
Along with announcing the executive shake-up, Ulta raised its fiscal fourth-quarter outlook because of “stronger-than-expected performance during the holiday season.” The company said it now anticipates comparable sales will increase modestly and operating margin will be above the high end of the company’s previous expected range of 11.6% to 12.4% of sales. In early December, Ulta said it expected comparable sales would range between a decline of 1% and flat.
Shares of the company rose more than 2% in extended trading.
Ulta Beauty has faced a more challenging landscape, as a wide range of retailers, including Macy’s and Kohl’s, chase a bigger piece of beauty sales and as customers watch their discretionary spending. At an investor conference in the spring, Kimbell warned of a slowdown in the category.
In recent quarters, Ulta has fought to maintain its spot as a top beauty retailer by carrying new brands, throwing more in-store events and adding additional digital tools.
Steelman will now lead those efforts. The company’s incoming CEO has been with Ulta for more than a decade and became its chief operating officer in 2023.
In the release, Kimbell described Steelman as “a strategic leader with a proven record of driving operational excellence and creating exceptional guest experiences while fostering a caring and inclusive culture.”
Kimbell, who has been with the company since 2014, became its CEO in 2021. In a news release, Ulta said he will serve as an advisor to the company through June 28.
Shares of Ulta closed Monday at $431.30, about 25% below their 52-week high.
Ulta Beauty is expected to report its fiscal fourth-quarter results on March 13.
Across the business world, there has been a jump in CEO changes. Last year, U.S. public companies had more chief executive changes than any other year since at least 2010, when outplacement firm Challenger, Gray & Christmas first started tracking the turnover. Companies with leadership changes included Starbucks, Kohl’s, Nike and Boeing.
