SALLY BEAUTY HOLDINGS,INC. (NYSE:SBH) Files An 8-K Results of Operations and Financial Condition

ME Staff 8-k
-
0

SALLY BEAUTY HOLDINGS,INC. (NYSE:SBH) Files An 8-K Results of Operations and Financial Condition
Item 2.02. Results of Operations and Financial Condition

On May 4, 2017, Sally Beauty Holdings, Inc. (the “Company”) issued the news release attached hereto as Exhibit 99.1 reporting the financial results of the Company for the quarter ended March 31, 2017 (the “Earnings Release”).

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointments of Certain Officers; Compensatory Arrangements of Certain Officers

Appointment of Linda Heasley to Board of Directors

On May 4, 2017, the Board of Directors (the “Board”) of the Company elected Linda Heasley as a director to serve until the 2018 annual meeting of the Company’s stockholders or until her earlier resignation or removal.  The Board has determined that Ms. Healey is “independent” under the Corporate Governance Standards of the New York Stock Exchange and under the Company’s Corporate Governance Guidelines.

Ms. Heasley, age 62, currently serves as the Chief Executive Officer of The Honey Baked Ham Company, LLC, a position she has held since February 2017.  Prior to joining The Honey Baked Ham Company, Ms. Heasley served as Chief Executive Officer and President of the Plus Fashion Segment at Ascena Retail Group Inc., the parent company of Lane Bryant, Inc. since October 2016 and as the Chief Executive Officer and President of Lane Bryant, Inc. from February 2013 until February 2017. Ms. Heasley also served as the Chairman, President and Chief Executive Officer of Limited Stores LLC from August 2007 until February 2013.  Prior to this, Ms. Heasley held senior leadership roles at CVS Health Corporation, Timberland LLC, Bath and Body Works and L Brands, Inc.  She currently serves as a director at J. Jill, Inc.  Ms. Heasley holds a B.A. degree from Harvard University and earned her M.B.A. from the John Anderson School of Management, UCLA.

Ms. Heasley will receive compensation for her service as a director in accordance with the Company’s Second Amended and Restated Independent Director Compensation Policy described in the Company’s Form 10-Q, filed with the Securities and Exchange Commission on May 5, 2016.

Resignation of Sharon Leite, President of Sally Beauty Supply

On May 1, 2017, Sharon Leite notified the Company that she is resigning from her position as President of Sally Beauty Supply LLC effective May 1, 2017. Ms. Leite’s resignation was not the result of any disagreement with the Company regarding its operations, policies, practices or otherwise.

The Company and Ms. Leite have entered into a separation agreement, to which Ms. Leite will receive the following separation benefits in exchange for her release of all potential claims against the Corporation: (i) an amount equal to her annual base salary, payable in four approximately equal installments, with the first payment being made within fourteen days following her date of termination and the remaining three installments being paid at 3-month intervals following the initial payment; (ii) an amount in cash, payable within fourteen days following her date of termination sufficient to cover reasonable moving expenses; (iii) an amount in cash equal to Ms. Leite’s cost for health insurance continuation under COBRA for a period of twelve months, payable within fourteen days following her date of termination; and (iv) an amount in cash equal to the cost of outplacement services for up to twelve months following her termination date, payable within fourteen days following her date of termination. Ms. Leite also will receive a prorated annual bonus for fiscal year 2017, based on actual performance under applicable financial metric and payable at the same time that the fiscal year 2017 annual bonuses are paid to active participants. The foregoing description of Ms. Leite’s separation agreement is qualified in its entirety by reference to the full text of the separation agreement, a copy of which will be filed as an exhibit to the Corporation’s Form 10-Q for the fiscal year ending June 30, 2017.

Chris Brickman, the President and Chief Executive Officer of Sally Beauty Holdings, Inc., will serve as the interim President of Sally Beauty Supply LLC, effective May 1, 2017, until such time as the Company appoints Ms. Leite’s successor. A search is underway for her replacement.

Item 7.01. Regulation FD Disclosure

The Earnings Release also provides an update on the Company’s strategy and business outlook.

Item 9.01. Financial Statement and Exhibits

(d) See exhibit index.

All of the information furnished in Items 2.02 and 7.01 of this report and the accompanying exhibit shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, unless expressly incorporated by reference therein.


About SALLY BEAUTY HOLDINGS, INC. (NYSE:SBH)

Sally Beauty Holdings, Inc. is an international specialty retailer and distributor of professional beauty supplies with operations primarily in North America, South America and Europe. The Company operates through two business segments: Sally Beauty Supply and Beauty Systems Group (BSG). Sally Beauty Supply is a domestic and international chain of cash and carry retail stores, which offers professional beauty supplies to both salon professionals and retail customers primarily in North America, Puerto Rico, and parts of Europe and South America. BSG, including its franchise-based business Armstrong McCall, is a full service beauty supply distributor, which offers professional brands of beauty products directly to salons and salon professionals through its own sales force and professional-only stores (including franchise stores) in partially exclusive geographical territories in North America and parts of Europe.

SALLY BEAUTY HOLDINGS, INC. (NYSE:SBH) Recent Trading Information

SALLY BEAUTY HOLDINGS, INC. (NYSE:SBH) closed its last trading session up +0.20 at 19.64 with 2,400,248 shares trading hands.