Ulta Beauty names CEO
BOLINGBROOK, Ill. — Beauty retailer Ulta Beauty has appointed former PepsiCo executive Mary Dillon as CEO and a member of the board, effective July 1. Interim CEO Dennis Eck will step down from his role at that time.
In February, Chuck Rubin stepped down as president, CEO and director to become CEO at Michaels Stores, a specialty retailer of arts and crafts.
“After conducting a thorough and robust search process, the board believes that Mary is the ideal person to lead Ulta Beauty as we enter our next phase of growth,” stated Eck. “Mary brings strategic vision, a rich consumer marketing background, strong operational experience, and a passion for the customer. Her experience with developing national brands, her expertise in the digital world, and her track record in building strong teams will all be important assets for Ulta Beauty. After spending the last several months working closely with the management team, I am certain that Mary will be an excellent cultural fit for the organization and lead Ulta Beauty to the next level.”
“With nearly three decades of experience leading consumer-driven businesses, Mary has the necessary leadership skills, experience as a public company CEO, and keen understanding of how to execute a successful digital strategy that will complement Ulta Beauty’s talented team to drive continued growth and success,” added Ken Stevens, Ulta Beauty’s non-executive chairman of the board.
Dillon joins Ulta Beauty from U.S. Cellular, where she served as president and CEO and a director since June 2010. At U.S. Cellular, a $4 billion national wireless carrier with operations in 26 states, 5.1 million customers and a network of 1,300 stores, Dillon led the company to develop new channels of distribution and revenue initiatives, implement an omni-channel strategy, and strengthen e-commerce platforms.
From 2005 to 2010, Dillon served as global CMO and EVP for McDonald’s. Prior to joining McDonald’s, Dillon was an executive at PepsiCo, where she held various positions of increasing responsibility, including president of the Quaker Foods division.
In addition, Dillon served as a member of the board for Target since 2007, and served as chair and executive committee member for CTIA — The Wireless Association. In a separate announcement, Target stated that Dillon has resigned from its board as a result of her new role at Ulta Beauty.
“As an active member of our board for the past six years, Mary has made many contributions to Target,” stated Gregg Steinhafel, chairman, president and CEO of Target. “We appreciate her service and wish her the best in her future endeavors.”
“I am delighted to be joining a company with such a strong track record and tremendous growth opportunities and am excited to be part of the dynamic beauty industry,” stated Dillon. “Ulta Beauty has set itself apart in the industry – it has always placed a real premium on the customer experience while simultaneously innovating and adapting to changes in the market. The company is well positioned for the future and I look forward to working closely with Ulta Beauty’s excellent leadership team and 16,000 dedicated associates to build on its proven growth strategies.”
Earlier this month the beauty retailer stated that it is off to a “good start” for 2013. Sales for the first quarter ended May 4 rose about 23% to $582.7 million, compared with $474.1 million in the year-ago period. Same-store sales increased 6.7%, including the impact of e-commerce sales.
Net income rose 20% during the first quarter to $41.8 million, compared with $34.9 million in the year-ago period. Income per diluted share increased 20.4% to 65 cents versus 54 cents in the first quarter of fiscal 2012.
Supreme Court rules in favor of Mutual Pharmaceutical in generic-liability case
WASHINGTON — Generic drug makers cannot be held liable if patients suffer harmful side effects after taking their drugs, the Supreme Court has ruled in a 5-4 decision.
The court announced Monday that it had handed down the ruling in the case of Mutual Pharmaceutical v. Bartlett, delivering a victory to the drug maker. Karen Bartlett was prescribed the Merck drug Clinoril (sulindac) and given a generic version of the drug made by Mutual to treat shoulder pain. After taking the drug, she developed Stevens-Johnson syndrome and toxic epidermal necrolysis, causing most of her skin to become burned or fall off, as well as near-blindness, esophageal burns and lung damage. A jury awarded her $21 million, and the Supreme Court heard the case in mid-March.
However, while Bartlett suffered the injuries after taking Mutual’s drug, under federal regulations governing generic drugs, a generic drug company typically does not have to conduct clinical trials — only demonstrate that its product is identical to the branded drug. It relies on the safety and efficacy data collected by the developer of the original branded drug.
The Generic Pharmaceutical Association, a trade group representing the generic drug industry, heralded the ruling, saying it upheld the principle that decisions about the safety and efficacy of prescription drugs should be left with the Food and Drug Administration.
"When it comes to decisions on safety and approval of prescription medicine, the FDA is best equipped to make judgments that affect patients," GPhA president and CEO Ralph Neas said. "The experts at FDA alone have the scientific knowledge, regulatory experience and complete data to make these decisions."
Target donates $50,000 to Canadian flood-relief efforts
MISSISSAUGA, Ontario — Target has donated money for relief amid floods in western Canada that have displaced more than 100,000 people and resulted in three deaths.
The retailer’s Canadian division said it donated $50,000 to the Canadian Red Cross to assist with flood-relief efforts in the province of Alberta. According to the BBC, Calgary, the province’s largest city, remained under a state of emergency despite improvements, with an estimated 75,000 people in more than 20 neighborhoods evacuated from their homes due to flooding in the Bow and Elbow rivers resulting from torrential rains.
"Our thoughts are with the people of Calgary and the other affected communities in southern Alberta today," Target Canada president Tony Fisher said. "Our hearts go out to all those impacted by the flooding, and we hope Target can help our neighbors in those communities recover quickly from this disaster."
Target opened 10 stores in Alberta in May, including six in Calgary.