Ulta Beauty’s stock got a bruised eye from Wall Street after the company said its popular chief executive is venturing down.
Shares of the make-up monster fell in excess of 10% on Friday after the company said Thursday that CEO Mary Dillon will be prevailing by the company’s leader, David Kimbell. Dillon will move to the executive chairman job for one year.
“This changing of the watchman happened sooner than the Street’s expectation,” composed Wells Fargo analyst, Ike Boruchow, in an exploration note, adding that Dillon is “quite possibly the most regarded CEOs in our space.”
Under Dillon’s eight-year run in charge, the Bolingbrook, Ill.- based company has flourished except for a year ago, as interest for cosmetics melted away during the pandemic. During her residency, sales developed by 236% to $7.4 billion out of 2019 and the quantity of stores multiplied to 1,264.
Incomes plunged to $6.2 billion a year ago as less ladies purchased shading cosmetics while they remained at home because of COVID-19 lockdowns. Yet, the company pulled off a shockingly solid occasion quarter, with equivalent sales down 4.8 percent contrasted and the in excess of 12% decrease analysts had anticipated.
“We start monetary 2021 with a solid establishment set up and great operational momentum,” Dillon said in an articulation. “We are deliberately putting resources into our business to drive further market share gains, and … we are starting to execute a smart progression plan that guarantees we keep on profiting by solid, experienced leadership for the following part of development.”
Kimbell joined Ulta in 2014 as chief marketing official and was named president in 2019.