So, here’s the scoop: Sally Beauty is planning to make some changes to their stores in 2023. They want to make things more efficient, which means they’re going to close down some of their Sally Beauty Supply stores and a couple of places where they store their products.
To make more money, they’ve decided to shut about 350 of their stores by December 2022. Most of these closures will happen in the United States. Right now, Sally Beauty has over 5,000 stores all over the world, and about 4,500 of them are in North America.
In the last part of 2022, Sally Beauty made $962.5 million in sales, which is a bit less than what they made during the same time in 2021. They say the reason for this drop is because they had some problems with getting products to their stores on time and because prices for things were going up (that’s what they mean by “rising inflation”).
And just so you know, this information comes from an independent news source called DiscontinuedNews. They’re all about giving people the facts without taking sides and making sure you’re in the know about what’s happening in the world.
Hey there! So, you might be wondering if Sally Beauty is going out of business. Well, let’s break it down.
Sally Beauty is known for selling salon-quality hair and beauty products without making your wallet cry. It’s a favorite spot for folks who want to do their hair or nails without spending a ton of money. But here’s the scoop: They’re closing down 350 Sally Beauty stores, and that’s what’s making people wonder.
In 2022, Sally Beauty had a bit of a tough time. Before that, they usually had more than 100,000 people coming into their stores. But things changed in May 2022, and fewer people started coming in. In August, they had about 89,500 customers in their stores, which is a lot less than the year before.
Now, Sally Beauty is mostly for folks who don’t have a lot of extra cash to spend. With things like gas and groceries getting more expensive, people are cutting back on other stuff, like beauty products. So, Sally Beauty is trying to deal with this by closing some stores.
So, they’re not exactly going out of business, but they’re making changes to stay in business and keep helping people get their beauty on without breaking the bank.
Are Sally Beauty Stores Closing in 2023?
Hey there! It looks like there are some changes happening with Sally Beauty stores in 2023. Let’s dive into it.
So, the big company behind Sally Beauty, called Sally Beauty Holdings Inc., just released a report in November. This report looked at how their business did in the year 2022, which ended in September. And here’s what they found: Their sales for the year went down by 1.5%.
Now, they’ve got some plans for the new year, 2023, to make things better. Their CEO, Paulonis, says they’re going to do three important things. One of those things is to make their operations work better, and that includes changing the way their stores are set up.
Sally Beauty owns and runs more than 2,000 stores all over the place. You can find them in Mexico, Puerto Rico, the United Kingdom, Japan, Germany, and all across the United States. They sell all kinds of beauty stuff, like hair, skin, and nail products, and fancy beauty supplies.
Here’s the part that’s making people talk: They’re going to close about 350 of their stores, starting in December 2022. Most of these stores are in the United States, but they didn’t say which ones exactly.
Why are they doing this? Well, they want to make their big stores work even better and make shopping easier for people, whether you’re in the store or online. They’re also going to close two smaller places where they keep their products in Oregon and Pennsylvania by the end of 2022.
So, Sally Beauty isn’t disappearing, but they’re making some changes to give you a better shopping experience.
Sally Beauty’s Plan to Improve Things
Okay, let’s dig into Sally Beauty’s plan to make things better. In the fourth quarter of 2022, which ended on September 30, they did something interesting. They took a charge of $45.5 million as part of their plan to make things work smoother. This plan also included writing down $19.4 million of inventory that wasn’t selling well.
Now, here are some numbers to help you understand how Sally Beauty did in the year 2022. They made more than $500 million in something called adjusted EBITDA, had $3.8 billion in net sales, and their profits were really good, with more than 50% in something called gross margins.
The CEO, Paulonis, said that despite some challenges like prices going up and problems with getting products to their stores on time, Sally Beauty’s teams did a great job in the 2022 fiscal year. They kept their focus on helping their customers, which is super important.
Sally Beauty Holdings, Inc. mainly does business through two parts: Sally Beauty Supply and Beauty Systems Group.
Now, they have lots of stores, more than 5,000 in total. Some are owned by them, and some are run by people who have a special agreement with Sally Beauty (we call them franchised stores). You can find these stores in many countries like the United States, Puerto Rico, the United Kingdom, Belgium, Canada, Chile, Mexico, France, Ireland, Spain, Germany, the Netherlands, and Peru.
In North America, the Beauty Systems Group runs more than 1,300 stores, including 164 franchised ones. They also have more than 800 people who help salons and stylists by providing products that they can use and sell to their clients. So, they’re all about making sure everyone can get the beauty stuff they need!
Sally Beauty’s Store Closures in 2022
So, in 2022, Sally Beauty made the decision to close down a bunch of their Sally Beauty Supply stores. They actually shut more than 110 stores during the year, and these stores were all over the United States. For example, one store in Macomb, Illinois, closed in June, and another in Gloucester, Virginia, closed in the fall.
Now, they’re not just closing stores randomly. They have a plan to make things work better, and that’s why they’re doing this. They looked at places where they tried closing some smaller stores before, and when they saw that it helped them make more money, they decided to close even more.
By closing these stores, they think they can save about $50 million in costs and also make more sales. Sally Beauty Holdings Inc. is feeling pretty positive about their new plans and how it’s going to help their business. But they also know that things outside their control, like prices going up (that’s what they mean by “inflationary pressure”) and labor costs going higher, can make things complicated.
So, they’re working hard to make sure they can keep giving you what you need for your beauty routine while dealing with these challenges.
In Conclusion: Sally Beauty’s Path Forward
So, let’s wrap things up. There are some good news and exciting plans in store for Sally Beauty!
One positive thing to note is that their online sales went up by 30% in a year, reaching $90 million. That’s about 9.3% of all the money they made in a quarter.
Yes, they are closing down some physical stores, but they’re not slowing down. They’re working hard to create more digital and interesting products. They believe these changes will lead to the company making a bit more money, like low to mid-single-digit growth.
Denise Paulonis, the boss at Sally Beauty, wants to put customers at the center of everything. Here’s what they’re planning:
- They’ll provide more support services for the people who do hair and beauty in their stores (we call them stylists).
- They’ll improve training and make sure everyone has a great experience when they visit Sally Beauty.
- They’re going to have more of their own cool brands with the name Sally on them.
- They’re going to come up with new and creative ideas.
- They’ll work better behind the scenes to make everything run smoothly.
- They’re also making sure they’re a company that’s all about being fair, inclusive, and caring about the environment.
So, Sally Beauty is all about making the world a more colorful, confident, and welcoming place, and they have some big goals to make it happen!