As it emerges from coronavirus-related restrictions, Sally Beauty is giving an update on its business operations along with the release of select preliminary intra-period unaudited financial details for part of its fiscal third quarter.
As of May 31, Sally Beauty estimated that it had more than $650 million of cash on-hand, with an additional $200 million of undrawn capacity on its asset-based line of credit. The company said it had seen strong demand from consumers and professionals in reopened stores and has reached a critical mass of locations in operation. Store reopenings are being triggered by local regulation, the adoption of the company’s new COVID-19 related safety protocols involving store cleaning, masks, gloves, limiting customer numbers in stores and in-store social distancing guidelines, as well as the recall from furlough of sufficient store staff.
By the week of May 4, the company had 1,100 Sally Beauty stores open in the U.S. and Canada, or 37% of the total, but by June 2, it had 2,458 stores open, or 84% of the total. In Europe, the company had 48 stores open, or 10% of the total, by the week of May 4, but by June 2 it had 202 stores open, or 44% of the total.
The company said its e-commerce sales had been stellar. Year over year, Sally Beauty’s namesake U.S. and Canada e-commerce sales grew by 118% in March, 872% in April and 585% in May.
Sally Beauty estimated that enterprise-wide sales were $262 million in May, even though a substantial number of stores remained closed during the month, while sales in April came in at $95 million. The company maintained that it plans to release its full third quarter financial results in late July.