Sally Beauty Holdings will close 350 stores, many within the U.S., during December 2022 as the retailer continues efforts to improve its profitability. The company also noted that it would close two small distribution centers in Oregon and Pennsylvania.
Sally Beauty Holdings reported $962.5 million in consolidated net sales for its Q4 2022, which ended Sept. 30, 2022 — a 2.8% decrease from the same period in 2021. The company cited inflationary pressures and supply chain challenges for its lackluster performance.
The retailer currently operates more than 5,000 stores worldwide, with approximately 4,500 in North America. By the end of Q4 2022, it was already was operating 117 fewer stores compared to 2021.
However, there were some bright spots: Sally Beauty reported a 30% increase in global ecommerce sales compared to the previous year, reaching $90 million, which represents 9.3% of consolidated net sales for the quarter.
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While Sally Beauty will close brick-and-mortar locations, it is cultivating greater omnichannel and experiential offerings that it hopes will generate low- to mid-single digit net sales growth.
“We will be executing against three strategic initiatives that will serve as the foundation for us to inspire a more colorful, confident and welcoming world,” said Denise Paulonis, President and CEO of Sally Beauty in a statement. “We will enhance our customer centricity, including an expanded services ecosystem to support our professional stylists and increased education and expertise to inspire and support all customers; grow our Sally portfolio of high-margin owned brands and amplify innovation; and increase the efficiency of our operations. Moreover, we will also advance our ESG and our diversity, inclusion and belonging commitments.”
