“The Board is very grateful to Gary Winterhalter for his leadership as CEO and his commitment to the Company’s success. We are pleased that he will continue to play a key role with the Company,” said Robert McMaster, lead independent director of the Sally Beauty Holdings board, in a statement to press announcing the transfer of power.
Building on the past
Winterhalter began his term as CEO in 2006, when Sally Beauty detached from the Alberto-Culver Company. Since then the company’s stock price has increased fourfold. And, sales increased over $1 bn to $3.8bn. “Sally Beauty is well positioned for continued growth, and I am confident that Chris and his management team can take the Company to the next level,” said Winterhalter.
Aiming for longevity
Publically, Brickman speaks with optimism about the company’s prospects for the future and the opportunity he has to compound Winerhalter’s gains. “I assure you that the Company’s priority will remain focused on the execution of our strategic initiatives to drive long-term shareholder value,” he said as he took on the CEO job.
The expanse of Sally Beauty suggests that there are many options for driving long-term value. The company operates in markets across the Americas and Europe, from Canada to Mexico, from the Netherlands to Spain. Sally Beauty distributes nearly 10,000 personal care products via 4,800 stores.
Hacked
Last March 5th, hackers stole consumer data from the company. Nearly 25,000 records were illegally accessed. Sally Beauty disclosed the incident when it happened and took further measures to preserve consumer trust.
“The company is keen to publicize the steps it is taking to contain the incident, including working with relevant bodies such as the U.S. Secret Service, and conducting a full review of all payment card information systems,” wrote Cosmetics Design reporter Lucy Whitehouse when the security breach was made public.
In keeping with that tactic, nearly one year later the company homepage prominently links to statements and FAQs about the “Sally Beauty Data Incident.” Digital commerce has its risks. When companies act responsibly there’s a better chance of moderating that risk for consumers and brands.