We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sally Beauty Reopens Stores, Brings Back Certain Employees
Read MoreHide Full Article
With restrictions to check the coronavirus outbreak being lifted, a number of retailers have been reopening their stores globally. The latest to join the list is Sally Beauty Holdings, Inc. (SBH - Free Report) . The company announced that Sally Beauty Supply U.S. and Canada have reopened 84% stores by the end of May. Further, Beauty Systems Group had 82% of stores operational at the end of May.
Also, the company’s continental European stores are now operational. Apart from these, Sally Beauty expects its stores in Ireland and United Kingdom to reopen by Jun 15. Additionally, management is on track with reopening stores in Latin America as well.
Apart from Sally Beauty, other retailers like Kohl's Corporation (KSS - Free Report) , Five Below, Inc. (FIVE - Free Report) and Macy’s, Inc. (M - Free Report) have been on track with reopening stores as coronavirus-led restrictions are being relaxed in many regions. Nevertheless, retailers are taking adequate precautionary measures for the sake of their employees’ and customers’ safety. This includes proper face coverings for workers, maintaining social distancing norms along with enhanced sanitization among other moves.
Impressively, Sally Beauty has been witnessing robust consumer as well as professional demand since its stores reopened. The company expects enterprise-wide sales to come in at $262 million for May in spite of a large number of its stores being shut during that time. Meanwhile, revenues for April came in at $95 million.
Notably, Sally Beauty will bring back all its previously furloughed associates working in the field and headquarter across the United States and Canada, effective Jun 8. However, associates who work in all those stores that continue to remain closed will not be called back. Also, the company expects to bring back its Europe and Latin America store associates in fourth-quarter fiscal 2020.
All said, with consumers avoiding crowded places and limiting their visits to brick-and-mortar stores as a precautionary measure, online retail is seeing a spurt in sales. Incidentally, Sally Beauty continues to witness significant growth in its online business across all regions even when majority of its stores have been reopening. In fact, management expects to hire more than 120 employees to support its online operations, digital product development, technology as well as analytics.
We note that this trend was visible even when the company reported second-quarter fiscal 2020 results, with e-commerce sales increasing 28% year over year. The upside was attributed to increased consumer demand on digital platforms amid temporary store closures. However, the company’s revenues declined year over year in the quarter affected by temporary store closures amid the coronavirus outbreak and lower store count compared with the year-ago quarter’s figures.
Meanwhile, Sally Beauty has undertaken a number of measures to improve its financial position amid the coronavirus outbreak. The company has moderated its near-term rent payments and significantly reduced its marketing as well as back-office expenses. The company has also made certain adjustments to its capital investment plans. Apart from these, Sally Beauty has undrawn capacity on its asset-based line of credit amounting to $200 million amid the crisis.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020? Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Sally Beauty Reopens Stores, Brings Back Certain Employees
With restrictions to check the coronavirus outbreak being lifted, a number of retailers have been reopening their stores globally. The latest to join the list is Sally Beauty Holdings, Inc. (SBH - Free Report) . The company announced that Sally Beauty Supply U.S. and Canada have reopened 84% stores by the end of May. Further, Beauty Systems Group had 82% of stores operational at the end of May.
Also, the company’s continental European stores are now operational. Apart from these, Sally Beauty expects its stores in Ireland and United Kingdom to reopen by Jun 15. Additionally, management is on track with reopening stores in Latin America as well.
Apart from Sally Beauty, other retailers like Kohl's Corporation (KSS - Free Report) , Five Below, Inc. (FIVE - Free Report) and Macy’s, Inc. (M - Free Report) have been on track with reopening stores as coronavirus-led restrictions are being relaxed in many regions. Nevertheless, retailers are taking adequate precautionary measures for the sake of their employees’ and customers’ safety. This includes proper face coverings for workers, maintaining social distancing norms along with enhanced sanitization among other moves.
Impressively, Sally Beauty has been witnessing robust consumer as well as professional demand since its stores reopened. The company expects enterprise-wide sales to come in at $262 million for May in spite of a large number of its stores being shut during that time. Meanwhile, revenues for April came in at $95 million.
Notably, Sally Beauty will bring back all its previously furloughed associates working in the field and headquarter across the United States and Canada, effective Jun 8. However, associates who work in all those stores that continue to remain closed will not be called back. Also, the company expects to bring back its Europe and Latin America store associates in fourth-quarter fiscal 2020.
All said, with consumers avoiding crowded places and limiting their visits to brick-and-mortar stores as a precautionary measure, online retail is seeing a spurt in sales. Incidentally, Sally Beauty continues to witness significant growth in its online business across all regions even when majority of its stores have been reopening. In fact, management expects to hire more than 120 employees to support its online operations, digital product development, technology as well as analytics.
We note that this trend was visible even when the company reported second-quarter fiscal 2020 results, with e-commerce sales increasing 28% year over year. The upside was attributed to increased consumer demand on digital platforms amid temporary store closures. However, the company’s revenues declined year over year in the quarter affected by temporary store closures amid the coronavirus outbreak and lower store count compared with the year-ago quarter’s figures.
Meanwhile, Sally Beauty has undertaken a number of measures to improve its financial position amid the coronavirus outbreak. The company has moderated its near-term rent payments and significantly reduced its marketing as well as back-office expenses. The company has also made certain adjustments to its capital investment plans. Apart from these, Sally Beauty has undrawn capacity on its asset-based line of credit amounting to $200 million amid the crisis.
We note that, shares of this Zacks Rank #4 (Sell) company have lost 26% in the past six months compared with the industry’s decline of 2.8%. Nevertheless, the stock has rallied 45.5% in the past month. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020? Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>