Marie Redding, Senior Editor03.11.21
Ulta Beauty's CEO Mary Dillon is stepping down on June 2nd, the company announced today. Dave Kimbell, president, will succeed Mary Dillon as chief executive officer.
(See Dillon wishing her staff a happy Employee Appreciation Day in the video below)
Dillon comments:
“It has been the honor of my career to lead the Ulta Beauty family for the last eight years and a true joy...Dave is a world-class business leader with incredible passion, deep beauty expertise, unwavering drive, and a values-based leadership style."
Some say it's sad news to hear during Women's History Month—when women lead only 8% of all Fortune 500 companies, according to McKinsey & Company's Women in the Workplace report.
Since leadership changes affect a company's bottom line, Peter Hanks, an analyst at DailyFX, comments, "Though ULTA plans to open 40 micro-stores within Targets across the US, the future of the stock is uncertain."
Hanks continues, "Mary Dillon will be replaced by a male CEO. The Fortune 500 will lose an incredibly successful female leader during National Women’s History Month and the week of International Women’s Day."
He adds, "Even though her replacement is highly respected and a longtime executive, her departure deals a heavy blow to the gender divide in CEOs amongst large corporations.”
Ulta Beauty's executive team is more diverse than most, however,—60% are women and 20% are people of color.
Dillon will serve as executive chair for one year. She will continue to help guide strategy while supporting Kimbell in his transition. Kimbell is expected to be elected to the company’s board of directors at the 2021 annual stockholders meeting.
Kecia Steelman, currently chief store operations officer, will be promoted to chief operating officer.
Dave Kimbell first joined Ulta Beauty as chief marketing officer in 2014.
Kimbell comments:
“I am humbled to serve as the next CEO of Ulta Beauty, succeeding Mary, whose leadership has been transformational, creating lasting impact across the beauty and retail industries. We will continue to build upon the foundation she set to ensure Ulta Beauty is a destination where every guest feels welcome and every associate can have a fulfilling career.”
Mary Dillon Drove Significant Growth
In her eight years as CEO, Dillon developed Ulta Beauty's inclusive culture and drove significant business growth. She more than tripled market capitalization, the company states, to more than $18 billion today—and doubled the retailers’ fleet of stores.Dillon is also credited with more than doubling Ulta Beauty's loyalty members and significantly drove its ecommerce capabilities.
During her tenure, Ulta Beauty joined both the S&P and Fortune 500 listings and delivered total shareholder return of 245%.
“Thanks to Mary’s outstanding leadership, the future is very bright at Ulta Beauty,” said Kimbell. “Our dynamic business plays a unique and important role in the beauty industry and in our guests’ lives – and we are committed to continue operating with deep respect for that role while innovating and winning together.”
In other news, Ulta Beauty is one Fast Company's Most Innovative Companies.
