Ulta Beauty Inc (NASDAQ:ULTA) shares are trading higher in Monday's after-hours session after the company announced a CEO transition and updated its near-term outlook.

What Happened: After the market close on Monday, Ulta announced that Dave Kimbell will retire as CEO and step down from the company's board, effective immediately.

President and COO Kecia Steelman will succeed Kimbell as president and CEO, effective as of Monday. Steelman will also join the company's board.

"Kecia is a world-class business executive with deep beauty and retail expertise, an unwavering commitment to effective execution, and a profound passion for our guests and associates. She has been instrumental in developing our recently refreshed strategic framework, and we are confident that she is the right person to lead Ulta Beauty forward," said Lorna Nagler, chair of Ulta Beauty's board.

In addition to the CEO transition, Ulta updated its fourth-quarter guidance to reflect stronger-than-expected performance during the holiday season.

The company now expects comparable sales to "increase modestly." Ulta also said it expects operating margin to be above the high-end of the company's previous expected range of 11.6% to 12.4% of sales.

Ulta is scheduled to report fourth-quarter financial results on March 13. Analysts currently expect the company to report earnings of $6.73 per share and revenue of $3.4 billion, according to estimates from Benzinga Pro.

"I am confident the strategic priorities we shared last fall will enable us to capture greater market share in beauty and wellness and deliver long-term profitable growth, and I am excited to lead our outstanding teams as we unlock even greater advantages of our operating model, drive best-in-class execution, and position Ulta Beauty for our next chapter of growth as the beauty destination for a lifetime," Steelman said.

ULTA Price Action: Ulta Beauty shares were up 2.48% after hours, trading at $442 at the time of publication Monday, according to Benzinga Pro.

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