BOLINGBROOK, Ill. — Ulta Beauty announced on Thursday that Chuck Rubin will step down as president, CEO and director, effective Feb. 21, to become CEO at Michaels Stores, a specialty retailer of arts and crafts.
The board of directors has appointed Dennis K. Eck, current non-executive chairman of the board of directors, as interim CEO. Rubin has agreed to assist the company during the transition period.
Ulta Beauty noted that Rubin’s departure from the company is not related to any disputes with management or the board, the company’s operational performance, financial condition or issues regarding the integrity of the company’s financial statements or accounting policies and practices.
“My choice to pursue an opportunity at another company was not easy, but I believe it is the right decision for me and my family,” stated Rubin. “I have very much enjoyed my tenure as president and CEO at Ulta Beauty, working alongside some of the industry’s finest talent. I am proud of what we have accomplished together and am confident that the company will continue to drive value creation for shareholders and other important stakeholders through the execution of its growth strategy.”
The board has formed a search committee comprising Eck, Robert R. DiRomualdo, Charles Heilbronn and Kenneth T. Stevens. The committee has begun a search to identify a permanent CEO and is in the process of retaining an executive recruiting firm to advise the board.
“Ulta Beauty’s board is committed to conducting a thorough and comprehensive search to identify the best candidate to serve as our next CEO,” stated Eck. “On behalf of the board, I would like to thank Chuck for his service to the company. Chuck has been a valuable member of our Board and leadership team and we wish him the very best in his future endeavors.”
“Ulta Beauty has delivered exceptional sales growth and operating margin improvement through the successful execution of our multi-year growth strategy,” continued Eck. “With a strong management team, a deep bench of talent throughout the company and the support of our board, we will continue to build on the positive momentum of our business with a strong focus on executing our strategy. Having served as a member of the Ulta Beauty board since 2003, I have worked closely with management to develop our current strategy and am confident in our collective ability to lead the company forward during this transition period.”
The company also announced fourth quarter fiscal 2012 total sales increased 30% to $757 million and comparable store sales increased 8%. The company is reaffirming its guidance for income per diluted share for the fourth quarter of fiscal 2012 to be in the range of 96 to 98 cents. This compares with income per diluted share for the fourth quarter of 2011 of 73 cents.
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