Feb 14 Beauty products retailer Ulta Salon
Cosmetics and Fragrance Inc said Chief Executive Chuck
Rubin will step down to join Michaels Stores Inc, North
America's largest arts and craft retailer, sending Ulta Salon's
shares down as much as 13 percent.
Rubin's departure follows the resignation of Chief Financial
Officer Bruce Hartman in October.
Credit Suisse, which downgraded Ulta Salon to "neutral" from
"outperform", said Rubin's departure after more than two years
at the helm had created near-term uncertainty for the company.
"It is difficult for us to have an 'outperform' on a company
missing a full time CEO and full time CFO. Until those positions
are filled, we prefer to be on the sidelines," Credit Suisse
analysts led by Gary Balter wrote in a note to clients.
Ulta Salon's sales have risen 22 percent since Ruben became
CEO in September 2010, while its stock jumped four-fold.
Non-Executive Chairman Dennis Eck has been appointed interim
Michaels Stores said Rubin, whose resignation takes effect
on Feb. 21, will assume his new role after an unspecified period
of transition, during which the company will discontinue the
office of the CEO.
The office of the CEO was set after Michaels CEO John Menzer
suffered a stroke in April 2012.
Bolingbrook, Illinois-based Ulta Salon's shares were down 12
percent at $88.00 in mid-morning trading on the Nasdaq. The
stock, which touched a low of $86.90, was one of the top
percentage losers on the exchange.
Bain Capital Partners and Blackstone Group are major
investors in Michaels.