Sally Beauty Holdings Inc.’s sales fell more than 27 percent for the latest quarter due to coronavirus-related store closures.
The company posted a 27.7 percent year-over-year decline in net sales, to $705.3 million in the quarter, “driven primarily by the impact of the rolling shut down of customer-facing operations at almost all global stores,” the company said in a statement. The company posted a $23.5 million net loss for the quarter.
While sales dipped, Sally’s e-commerce business soared, increasing 278 percent from the prior-year period and bringing in $137 million in sales for the third quarter.
Chris Brickman, Sally’s chief executive officer, said the company plans to continue to invest in digital, “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.”
Sally drastically slashed marketing in the quarter, reduced inventory levels to a six-year low and got rent abatements. The business also increased its borrowing capacity by $120 million, which is now $620 million.
The company started reopening some stores in April, and as of June 30, all stores were open in the U.S., Canada, the EU and U.K. Sally has recalled some staff from furloughs for the reopenings, and instituted safety protocols like cleaning and limiting the number of customers in a store, the company said.