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    Breaking News

    Sally Beauty Closes Shop

    Temporary closure of customer-facing operations at all US and Canada stores.

    Sally Beauty Closes Shop
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    Happi Staff03.25.20
    Sally Beauty Holdings, Inc. has temporarily closed customer-facing store operations at all stores in the US and Canada due to COVID-19. 
     
    “Over the past few weeks, we have been assessing the developing COVID-19 situation carefully and responding to the evolving guidelines and restrictions which have been implemented by local and state authorities. As a result, a significant number of Sally and Cosmo Prof stores have been required to close over the last few weeks. In many cases, we have been required to cease all store operations. Where permitted, we have continued to operate through a contactless curbside pickup model. In addition, we have shifted our merchandising strategy to focus on needed hygiene and sanitation categories,” said Chris Brickman, president and chief executive officer. “Despite these measures, we now believe it is time to proactively close all remaining retail and wholesale store fronts to customers until at least April 9th. Where permitted by regulation or local order, stores will transition to the curbside service model which allows customers to call their local store, place an order, and arrange a convenient, no contact, curbside pick-up at that store. The network-wide wind down was completed on Monday, March 23.”
     
    Sally Beauty Supply customers can also purchase needed products from sallybeauty.com, sallybeauty.ca and the Sally Beauty app. Customer orders in the U.S. will be serviced from inventory in the Company’s national supply chain network, and the Company is providing expedited access to further inventory by launching ship-from-store via UPS from approximately 300 Sally Beauty stockrooms nationwide. Canadian customer orders will be handled via the Company’s new ship-from-store service from inventory in a limited number of 
     
    Cosmo Prof and Armstrong McCall customers who are licensed professionals can order online via cosmoprofbeauty.com, through their designated sales consultant, and by calling stores that are permitted to operate curbside pick-up. Selected products will be available for shipment from the Company’s supply chain or via the just-launched same-day delivery service with Postmates from approximately 600 Cosmo Prof locations.
     
    The Company has been proactive in maintaining its financial flexibility. In addition to store closures and related furloughs, the Company has reduced its capital investments, will be temporarily idling several distribution centers and temporarily furloughing elements of the headquarter’s staff, in advance of a network restart. The company is providing its furloughed employees in the U.S. and Canada with two weeks pay and medical benefits continuation through April 30, 2020.
     
    The CEO and boardhave reduced their pay by 50% for the duration of the COVID-19 crisis. Other senior leaders will also have significant reductions in salary for the same time period.

    The company has access to a $500 million secured asset-based revolving line of credit, which expires in July of 2022. In support of its operations, and out of an abundance of caution, the company has drawn $395 million on this credit facility as of March 23, 2020.
     
    Due to the evolving COVID-19 pandemic and the related business uncertainty, the Company is reprioritizing its transformation plans to accelerate roll-out of its digital programs, deferring non-digital capital investments and aggressively attacking its short-term cost structure.
     
    As part of this plan, the Company is withdrawing its prior full-year fiscal year 2020 financial guidance. The Company is not providing any updated guidance prior to releasing its quarterly results for the second fiscal quarter, expected in early May.
     
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