Texas-based retail chain Sally Beauty Supply is closing 350 of its stores by the end of this year, as well as distribution centers in Oregon and Pennsylvania. The company operates 4,500 stores in the US.
A part of an optimization plan, the company incurred a $45.5M charge, including a $19.4M non-cash inventory write-down. The plan envisions savings of $50M in expense savings with an additional $10M added to adjusted operating earnings in 2023, according to a report in Chain Store Age.
"Over the last several quarters, the company has been piloting store closures in various markets with the goal of maximizing the value of its large store portfolio and provide seamless omnichannel experience to its customers," Sally Beauty said, in a statement.
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