Dave Kimbell, chief executive officer of Ulta Beauty, stepped down on Monday, surprising many industry insiders. Kecia Steelman, president and chief operating officer, will succeed him as president and CEO and will join the company’s board. Kimbell will serve as an adviser to the company through June 28.

(Reuters) -Cosmetics retailer Ulta Beauty on Monday forecast a strong fourth quarter and said insider Kecia Steelman will replace retiring CEO Dave Kimbell in the top role, sending its shares up 1.5% in extended trading.

Kecia Steelman succeeds Kimbell and his 11-year tenure.

This leadership change follows the retirement of Dave Kimbell, who has been with Ulta Beauty for eleven years.

Ulta Beauty CEO Dave Kimbell will retire and Kecia Steelman, current President and COO, has been named as his successor.

CEO Dave Kimbell is stepping down effective immediately, Ulta said Monday, and will stay on as an advisor through June 28.

Key Takeaways Ulta Beauty said CEO Dave Kimbell is retiring after 11 years at the company, effective Monday.Kimbell will be succeeded by Chief Operating Officer Kecia Steelman.The cosmetics retailer also said it expects its fourth-quarter operating margin to land above the high end of its previously estimated range.

Ulta Beauty CEO Dave Kimbell is retiring and will be replaced by Kecia Steelman, the company's chief operating officer. Ulta also hiked its fourth-quarter guidance. In a news release, the beauty retailer said the leadership changes are effective as of Monday.