Ulta board names new chair
Ulta has named Robert F. DiRomualdo as the chair of the board after longtime member Charles J. Philippin resigns.
The company announced that Charles J. Philippin will resign as non-executive Chairperson of the Board of Directors of the company effective Sept. 30, due to medical reasons. Robert F. DiRomualdo, a current director of the company, will become the non-executive Chairperson of the Board as of Sept. 30.
“On behalf of the Board of Directors and entire team at Ulta Beauty, I would like to thank Charlie for his many contributions to the company,” said Mary Dillon, Chief Executive Officer. “We regret that medical issues prevent him from continuing his service and extend our best wishes to him and his family.”
The news comes shortly after the company released its second quarter report, where the company revealed same-store sales growth at Ulta was strong at 6.5 percent for the second quarter ended Aug. 4, but much less than the 8.1 percent increase in the first quarter and much less than the double-digit increases seen in previous quarters. Last year Ulta's second quarter comp was 11.7 percent.
However, while sales growth at Ulta does seem to be on a downward trend, the growth is still much more impressive than any of Ulta's retail peers can manage in this day and age of Amazon. Retail Leader featured Ulta Beauty in its May/June issue. Ulta Beauty saw 37.9 percent surge in e-commerce sales to $132.8 million, reflecting about 250 basis points (bps) of total comps growth in the quarter under review. Ulta Beauty’s adjusted earnings came in at $2.46 per share in the second quarter. Net revenues grew 15.4 percent year over year to $1,488.2 million. Gross profit improved 14.1 percent year over year to $535.5 million. However, gross profit margin fell 40 bps to 36 percent. During the fiscal second quarter, the company registered transaction growth of 3.1 percent while the average ticket was up 3.4 percent. Sales for the salon business grew 8.8 percent to $74 million.
In connection with Mr. DiRomualdo becoming the non-executive Chairperson of the Board of Directors, Michael R. MacDonald will replace him as Chair of the Audit Committee.