In this Wednesday, Dec. 12 2012 photo, Taneshia Wright, of Manhattan, fills out a job application during a job fair in New York. Economists forecast that employers added 155,000 jobs in December, according to a survey by FactSet. That would be slightly higher than November's 148,000. The unemployment rate is projected to remain at 7.7 percent. (AP Photo/Mary Altaffer)
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In this Wednesday, Dec. 12 2012 photo, Taneshia Wright, of Manhattan, fills out a job application during a job fair in New York. Economists forecast that employers added 155,000 jobs in December, according to a survey by FactSet. That would be slightly higher than November's 148,000. The unemployment rate is projected to remain at 7.7 percent. (AP Photo/Mary Altaffer)
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FILE - In this Tuesday, Dec. 11, 2012 file photo, an advertisement in the classified section of the Boston Herald newspaper calls attention to possible employment opportunities in Walpole, Mass. Economists forecast that employers added 155,000 jobs in December, according to a survey by FactSet. That would be slightly higher than November's 148,000. The unemployment rate is projected to remain at 7.7 percent. (AP Photo/Steven Senne, File)
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In this Wednesday, Dec. 12 2012 photo, Taneshia Wright, of Manhattan, fills out a job application during a job fair in New York. U.S. employers added 155,000 jobs in December, a steady gain that shows hiring held up during the tense negotiations to resolve the fiscal cliff. The solid job growth wasn’t enough to push down the unemployment rate, which remained 7.8 percent last month, the Labor Department said Friday, Jan. 4, 2013. The rate for November was revised up from an initially reported 7.7 percent. (AP Photo/Mary Altaffer)
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FILE - In this Tuesday, Dec. 11, 2012 file photo, an advertisement in the classified section of the Boston Herald newspaper calls attention to possible employment opportunities in Walpole, Mass. U.S. employers added 155,000 jobs in December, a steady gain that shows hiring held up during the tense negotiations to resolve the fiscal cliff. The solid job growth wasn’t enough to push down the unemployment rate, which remained 7.8 percent last month, the Labor Department said Friday, Jan. 4, 2013. The rate for November was revised up from an initially reported 7.7 percent. (AP Photo/Steven Senne, File)
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FILE - In this Aug. 14, 2012, file photo, a customer walks past building products at a Home Depot store in Nashville, Tenn. A boost from the gradually recovering housing market helped Home Depot's net income edge up in its fiscal third quarter_the world's biggest home-improvement retailer said Tuesday, Nov. 13, 2012, that its net income rose to $947 million, or 63 cents per share for quarter that ended Oct. 28. (AP Photo/Mark Humphrey, File)
Ulta CEO leaves for Michaels
BOLINGBROOK, Ill. (
AP) —
Ulta Beauty Salon, Cosmetics & Fragrances Inc. said Thursday that Chuck Rubin will step down as president and CEO of the beauty products retailer to become CEO of arts and crafts retailer
Michaels Stores Inc.
Ulta shares plunged nearly 12 percent in afternoon trading.
The company appointed Dennis Eck, non-executive chairman of Ulta's board of directors since 2003, as interim CEO. Rubin will step down Feb. 21 and will assist Ulta during the transition period. The company has formed a search committee to find a permanent CEO.
Ulta said that Rubin's departure is not related to any disputes with management, its board or the company's performance.
The company also reaffirmed its earnings forecast for its fiscal fourth quarter, for profit of 96 and 98 cents per share. It also said that it expects revenue of $757 million for the period, a 30 percent increase from the prior year. Analysts polled by FactSet expected the company to earn 98 cents per share on revenue of $751.8 million.
Ulta also sees revenue from stores open at least a year increasing by 8 percent. That is a key indicator of a retailer's financial performance, because it strips away the impact of recently opened or closed stores.
Credit Suisse analyst Gary Balter downgraded his rating on Ulta to "Neutral" from "Outperform" on Rubin's departure. He said the move creates some near-term uncertainty for the company, but he continues to like the retailer's concept. He also said Rubin has been an integral part of Ulta's outsized success over the past two years. While he has high regard for Eck, he is in an interim position and that leaves some uncertainty at the top of the company. Balter said it was difficult to recommend the stock until he knew who was steering the ship. The analyst lowered his price target to $110 from $120.
Ulta, based in Bolingbrook, Ill., operates 550 stores across the country and sells its products online.
Shares of the company fell $10.49, or 10.5 percent, to $89 in afternoon trading. The stock has traded between $78.87 and $103.52 in the past 52 weeks.
Tags:
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