Sally Beauty Said It's Cutting Jobs at Denton Headquarters

Denton-based Sally Beauty Holdings, a retailer and wholesaler of hair and beauty care products, said Wednesday that job cuts are part of a broader restructuring plan designed to save about $15 million in annual operating costs. The company said it plans to use the money for programs that will grow the business. Spending will be shifted to new technology and ways to improve the in-store customer experience. The company also said it's working on its e-commerce operations and wants to improve its inventory system.Competition in the beauty category has accelerated in the last couple of years with Ulta Beauty opening 100 new stores every year since 2014. Sephora shops continue to open inside J.C. Penney stores and Macy's has been expanding its Blue Mercury brand with both free-standing stores and shops inside its Macy's stores. Ulta has been adding more color-cosmetics and brands that are popular with millennia and Gen Z shoppers. Ulta has also built up its prestige brands and in March said it would be selling Chanel in some stores.Last May, Sally Beauty started working with Amazon.com as its local partner for its Prime Now one-hour and two-hour delivery service in North Texas for hair and beauty products.At the end of last year, Sally Beauty operated 3,787 stores namesake stores and 1,390 Beauty Systems Group stores which sell to professional shop owners. It closed 28 Sally Beauty stores in 2017. About 900 of Sally Beauty's stores are located outside the U.S. in Canada, UK, Ireland, Belgium, Netherlands, France, Germany, Spain, Chile, Peru and Mexico.The company told analysts in February that it expected full-year sales and margins to be flat in 2018 versus last year. Sales comparison in the first half of the year would be more challenging than the second half, the company said. The beautyIn its last fiscal year which ended Sept. 30, the company reported a 0.4 percent sales decline to $3.94 billion. Same-store sales fell 0.7 percent. Last year, the company posted a profit of $215 million, or $1.56 a share. That was 3.5 percent below the prior year profit of $223 million, or $1.50 a share.The stock price is down about 19 percent from a year ago. Shares closed up 51 cents to close Wednesday at $15.54.Twitter: @MariaHalkias  Continue reading...