Sally Beauty sees ‘strong’ demand in reopened stores

Sally Beauty Holdings is encouraged by initial results for its fiscal third quarter.

The beauty supplies retailer said it is seeing strong consumer and professional demand in its reopened stores. It estimated enterprise-wide sales for June of $348 million, up 9% from the prior year.   

On the e-commerce front, Sally Beauty’s estimated online sales in June rose 155% over the prior year. The chain’s e-commerce growth has slowed as stores have reopened. E-commerce sales rose 353% in April and 317% in April compared to the year-ago period. 

Sally Beauty said its “aggressive” cash management continued in June. Cash on-hand increased “significantly” to more than $815 million at the end of June, with an additional $200 million of undrawn capacity on its asset-based line of credit. 

The company has substantially completed its retail and wholesale store reopening process in the United States, Canada, the European Union, and the United Kingdom. A small portion of the store fleet, in parts of Mexico and South America, is expected to reopen in the next 60 days.

The company is closely monitoring the COVID-19 situation in each of its local communities and will respond on a case-by-case basis to further developments, while benefiting from reinforced safety protocols and the agility shown by the operations teams in recent months.