Professional beauty retailer Sally Beauty has announced it will be cutting jobs from its corporate headquarters in Denton, Texas, in the US.
The job losses are said to represent an expansion of the restructuring plan made in November and reflect the company’s focus on streamlining.
Forming part of the company’s wider strategy to boost its balance sheet, other measures being taken include cost savings initiatives focused on: organisational efficiencies, sourcing of product and brands for resale, indirect procurement, store operating expenses and inventory management.
President and CEO Chris Brickman said: “We have dedicated a substantial amount of work over the last several months into the development of initiatives that we expect will generate meaningful financial benefits, within both product margin and G&A expenses.
“We plan to utilise these benefits to maintain our profitability and fund the key investments required to transform the business and intensify our focus on our most differentiated categories – hair colour and hair care.”
It is forecast that the new strategy will help generate $14-$15m in annualised savings, with fiscal year 2018 benefiting from $6-$7m.
Any savings will be reinvested to support the company’s ongoing strategic initiatives.
However, charges due to be incurred – consisting primarily of employee separation costs and third party consultants – are expected to range from $15-$16m.
Sally Beauty reported consolidated net sales of $995m in Q1 2018, a decrease of 0.5% compared to the prior year.
At the time, Brickman described the quarter as “challenging” and put the sales decline down to slowing footfall in US stores, as well as an additional day of store closures due to the holiday calendar and the impact of Hurricane Maria in Puerto Rico.
