Sally Beauty faced several headwinds during its third quarter, as the retailer dealt with the coronavirus pandemic and the temporary shutdown of stores.
Consolidated net sales were $705.3 million in the company’s third quarter, down 27.7% compared to the prior year, driven primarily by the impact of the rolling shut down of customer-facing operations at almost all global stores for a significant portion of the quarter. These headwinds were partially offset by surging e-commerce sales and the rolling restart of store operations from mid-April until the end of June. E-commerce sales were $137 million for the third quarter, which represented growth of 278% compared to the prior year.
As a result of COVID-19, consolidated same store sales decreased by 26.6% for the entire third quarter. However, relative to the number of stores that were open, the company said it experienced strong demand in May and June as operations restarted.
The company posted a loss of $23.5 million, a decrease of $94.7 million, or 133.1% compared to the prior year. Diluted earnings per share in the third quarter were a loss of $0.21, compared to a profit of $0.59 in the prior year.
“We executed exceptionally well during a disrupted third quarter. The team aggressively managed costs and cash, drove an accelerated pivot to support digital growth and scale our key digital transformation initiatives, and reopened the store network faster than competitors,” said Chris Brickman, president and CEO, Sally Beauty. “Because of the speed and agility of our team, we are well positioned to take advantage of emerging customer trends and gain share in a disrupted environment. As we enter the fourth quarter, we will continue to invest in our digital transformation, take advantage of the strong demand for our key categories, adapt quickly to any new local restrictions or changes to consumer shopping behavior tied to the pandemic, and stay disciplined in terms of cost and cash management.”