Ulta Beauty, Inc. ULTA, the leading beauty retailer, has raised its fourth-quarter fiscal 2024 guidance, reflecting stronger-than-anticipated performance during the holiday season. The company has also announced a leadership change.

In a major leadership transition, Dave Kimbell, who has served as chief executive officer (CEO) for 11 years, will retire and step down from the board. Kecia Steelman, the company’s president and chief operating officer, will succeed Dave Kimbell as president and CEO starting Jan. 6, 2025. Dave Kimbell will stay on as an advisor through June 28, 2025, to ensure a seamless transition.

Holiday Strength Boosts ULTA’s Financial Outlook

Thanks to a successful holiday season, Ulta Beauty now expects comparable sales to grow modestly in the fiscal fourth quarter. Earlier, the metric was anticipated to decline to low single digits for the quarter. Management now expects quarterly operating margin to surpass the high end of its previous expected range of 11.6% to 12.4% of sales.

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What Else Should You Know About ULTA?

Ulta Beauty exceeded expectations in its fiscal third-quarter results, delivering stronger sales and profitability, driven by improved sales trends and strong financial discipline. Effective expense control and favorable shrink trends contributed to the better-than-expected results. The company reported earnings per share of $5.14 in the quarter, up from $5.07 reported in the year-ago period. Quarterly net sales advanced 1.7% to $2,530.1 million. The increase was primarily fueled by contributions from new stores. Comparable sales inched up 0.6% on a 0.5% rise in transactions and a 0.1% increase in average ticket size.

Ulta Beauty remains focused on executing key initiatives with precision in a dynamic market environment. The company is confident that its business model and strategic efforts will continue to drive long-term profitable growth and maintain its leadership position, solidifying its role as the go-to destination for beauty enthusiasts for years to come.

This Zacks Rank #3 (Hold) company’s stock has gained 18.3% in the past three months compared with the industry’s growth of 1.3%.

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