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Cosmetics retailer Ulta Beauty 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 percent 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 percent to 12.4 percent 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.
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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 Estée Lauder and L’Oréal 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.
By Savyata Mishra
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