Amid its ongoing digital commerce transformation, Sally Beauty Holdings Inc. reported third-quarter digital growth of 278 percent over the prior year. The beauty retailer also reported 555 percent digital growth in Sally U.S. & Canada (part of SBS) and 163 percent growth in Sally Europe (part of SBS) for the quarter, according to an announcement.
Sally Beauty said it has experienced “strong demand from consumers and professionals in reopened stores.” Sales throughout the enterprise are forecasted to clock in at $348 million in June and $705 million for the complete fiscal third quarter, “notwithstanding substantial elements of the store base being closed due to COVID-19 during the quarter.”
The retailer said it has finished a large portion of its wholesale and retail store reopening procedure in the United States, Britain, the European Union and Canada. It noted that a small share of its retail footprint in South America and Mexico is forecasted to open again in the 60 days to come.
“The Company is closely monitoring the COVID-19 situation in each of its local communities and will respond on a case-by-case basis to further developments, while benefiting from reinforced safety protocols and the agility shown by the operations teams in recent months,” Sally Beauty said.
The retailer said it has continued resolutely managing cash to make sure it has sufficient liquidity. It estimates that it has in excess of $815 million cash-on-hand, in addition to $200 million of “undrawn capacity on its asset-based line of credit” as of June 30.
In separate news, American Eagle Outfitters, Inc. saw its digital demand increase in Q1, fueled by strong shopper engagement and brand health. Management noted that eCommerce sales rose 33 percent, while inventory liquidation and store closures had a large impact on its first-quarter results. The company said it had extended store closures in locations where state and local government had put stay-at-home orders into place.