BOLINGBROOK, Ill. - Ulta Beauty (NASDAQ: NASDAQ:ULTA), a leading specialty beauty retailer with a market capitalization of $20 billion, today announced a significant leadership transition. Dave Kimbell, who has served as CEO for the past 11 years, will retire and step down from the company’s Board of Directors. Kecia Steelman, the current President and Chief Operating Officer, will succeed Kimbell as President and CEO, effective today. She will also join the company’s Board of Directors. According to InvestingPro data, the company maintains strong financial health with a GREAT overall score.
Kimbell’s tenure as CEO, beginning in 2021, saw Ulta Beauty grow to over $11 billion in annual revenue and achieve double-digit growth in diluted earnings per share, with current earnings per share at $25.04. He has been credited with fostering an inclusive culture and advancing the company’s market position, achieving an impressive 55% return on equity. As part of the transition, Kimbell will remain as an advisor to Ulta Beauty until June 28, 2025.
Steelman, who has been with Ulta Beauty since 2014, has held various executive roles and is recognized for her inclusive leadership and operational expertise. Her contributions have been pivotal in the company’s strategy development and profitable growth. In her response to the new appointment, Steelman expressed confidence in the strategic priorities set forth last fall, aiming to capture greater market share and ensure long-term profitable growth.
The company also provided an update on its fourth-quarter performance, indicating stronger-than-expected holiday season results. With 17 analysts recently revising their earnings expectations, as noted on InvestingPro, Ulta Beauty now anticipates a modest increase in comparable sales and an operating margin above the previously expected range of 11.6% to 12.4% for the quarter. The full financial results for the fourth quarter and fiscal 2024 will be reported on March 13, 2025. Discover more detailed analysis and 5 additional exclusive ProTips with an InvestingPro subscription.
This announcement is based on a press release statement from Ulta Beauty. The company cautions that forward-looking statements are subject to various risks and uncertainties and may not reflect future performance. These statements are not guarantees of future results and are based on current expectations. The full press release, which includes cautionary statements about forward-looking information, can be found on the company’s website.
In other recent news, ULTA Beauty has been under the spotlight following a string of positive developments. The company reported strong earnings and revenue results, exceeding even the most optimistic estimates. Loop Capital, Raymond (NS:RYMD) James, and BMO Capital have all maintained their ratings on ULTA stock, with Loop Capital raising its price target from $450.00 to $480.00, Raymond James maintaining a price target of $495.00, and BMO Capital increasing its target from $385.00 to $420.00.
TD Cowen also raised its price target to $450 from the previous $380, while maintaining a Hold rating, citing challenges such as a slowing industry and increased competition. Piper Sandler increased its price target for ULTA to $390.00 from the previous $360.00, keeping a Neutral rating on the stock.
These adjustments reflect confidence in ULTA’s potential to continue regaining prestige market share and successfully navigate competitive pressures. The company’s recent financial results, strong gross margins, and upwardly revised guidance have contributed to these positive outlooks. Despite the positive developments, some firms maintain a cautious stance, seeking further clarity on ULTA’s competitive position and distribution strategies.
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