Ulta Beauty names insider Steelman as CEO, flags strong holiday sales

(Reuters) -Cosmetics retailer Ulta Beauty (NASDAQ:ULTA ) said on Monday insider Kecia Steelman will replace retiring CEO Dave Kimbell in the top role, and forecast a strong fourth quarter, sending its shares up about 2% in extended trading.

Ulta expects quarterly comparable sales to increase modestly and said its operating margin will be above the high end of its previously expected range of 11.6% to 12.4% of sales, thanks to stronger-than-expected demand during the holidays.

Kimbell spent 11 years with the company and in his nearly four years as CEO, Ulta grew to more than $11 billion in annual revenue. He will serve as an adviser through June 28.

Steelman, currently president and operating chief of Ulta, has served in a variety of executive roles with the company since 2014.

Ulta raised its annual profit forecast in December, signaling a rebound in demand for perfumes and makeup during the holiday shopping season, even as rivals such as Estee Lauder (NYSE:EL ) and L'Oreal grappled with muted demand for premium beauty products in the United States.



It had targeted annual sales of between $11.1 billion and $11.20 billion and profit of between $23.20 and $23.75 per share.

The company plans to report fourth-quarter results on March 13.

Source: Investing.com