Sally Beauty has provided an interim update on the impact of COVID-19 on its business operations as well as actions taken by the company in response, along with the release of preliminary fiscal third quarter unaudited financial details including e-commerce sales increases.
As of June 30, Sally Beauty estimated that it had more than $815 million of cash on-hand, with an additional $200 million of undrawn capacity on its asset-based line of credit. The company stated that it has substantially completed its retail and wholesale store reopening process in the U.S., Canada, the European Union and the United Kingdom. The company expects a small portion of the store fleet operating in parts of Mexico and South America to reopen in the next 60 days.
Sally Beauty asserted that it is closely monitoring the COVID-19 pandemic in each of its local communities and will respond on a case-by-case basis to related developments. The company will deal with the ongoing coronavirus pandemic by leveraging reinforced safety protocols.
With strong demand from consumers and professionals in reopened stores, Sally Beauty noted that it estimates enterprise-wide sales to be $348 million in June and $705 million in the full fiscal third quarter despite substantial elements of the store base being closed during the period. In late July, it expects to release its full third quarter earnings results, including the intra-quarter impact inventory clearance actions, restructuring efforts and store fleet considerations.
Sally Beauty continues to experience growth in its e-commerce operations, the company maintained, notwithstanding significant store openings across its fleet. The company estimated that in the third quarter, digital sales increased by 278% while those for Sally Beauty U.S. & Canada increased by 555%, those for Sally Beauty Europe increased by 163% and those for Beauty Systems Group U.S. and Canada increased by 158%.