Sally Beauty Provides Update On Recent Security Investigation
May 28 2015 - 5:00PM
Business Wire
Sally Beauty Holdings, Inc. (the “Company”) updated its
customers today on its ongoing investigation of the illegal
intrusion into its payment card systems and efforts to provide
support to customers who may have been affected by the
incident.
As previously announced, the Company began an investigation into
a possible security incident shortly after it received reports in
late April of unusual activity involving payment cards used at some
of its U.S. Sally Beauty stores. Since then, the Company has been
working diligently with the help of law enforcement and leading
third-party forensics experts to seek to ensure that its customers
are protected.
The Company can now confirm criminals used malware believed to
have been effectively deployed on some of its point-of-sale systems
at varying times between March 6th and April 17th, 2015.
Accordingly, the payment card information of customers that used
cards at affected U.S. Sally Beauty stores during this time may
have been put at risk. In addition:
- Sally Beauty does not collect or store
PIN data. Therefore, the Company has no reason to believe, and has
received no information to suggest, that debit card PINs may have
been impacted
- The Company has eliminated this malware
from all Sally Beauty point-of-sale systems
“We regret any inconvenience this incident may have caused our
customers, and we want to reassure them that protecting our
customers is our priority,” said Chris Brickman, President and CEO.
“Because we cannot pinpoint exactly which cards might have been
affected during our reported date range, we are offering credit
monitoring services to any customer who used their payment card at
a U.S. Sally Beauty store between March 6th and April 17th of 2015.
Customers who wish to take advantage of these free identity
protection services can learn more through our website,
sallybeautyholdings.com, or by contacting us at 1-866-234-9442 or
customerserviceinquiry@sallybeauty.com.”
About Sally Beauty Holdings, Inc.
Sally Beauty Holdings, Inc. (NYSE: SBH) is an international
specialty retailer and distributor of professional beauty supplies
with revenues of $3.8 billion annually. Through the Sally Beauty
Supply and Beauty Systems Group businesses, the Company sells and
distributes through 4,900 stores, including approximately 200
franchised units, throughout the United States, the United Kingdom,
Belgium, Chile, Colombia, Peru, France, the Netherlands, Canada,
Puerto Rico, Mexico, Ireland, Spain and Germany. Sally Beauty
Supply stores offer up to 10,000 products for hair, skin, and nails
through professional lines such as Clairol, L’Oreal, Wella and
Conair, as well as an extensive selection of proprietary
merchandise. Beauty Systems Group stores, branded as CosmoProf or
Armstrong McCall stores, along with its outside sales consultants,
sell up to 10,000 professionally branded products including Paul
Mitchell, Wella, Sebastian, Goldwell, Joico, and Aquage which are
targeted exclusively for professional and salon use and resale to
their customers. For more information about Sally Beauty Holdings,
Inc., please visit sallybeautyholdings.com.
Cautionary Notice Regarding Forward-Looking
Statements
Statements in this news release and the schedules hereto which
are not purely historical facts or which depend upon future events
may be forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Words such as
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,”
“project,” “target,” “can,” “could,” “may,” “should,” “will,”
“would,” or similar expressions may also identify such
forward-looking statements.
Readers are cautioned not to place undue reliance on
forward-looking statements as such statements speak only as of the
date they were made. Any forward-looking statements involve risks
and uncertainties that could cause actual events or results to
differ materially from the events or results described in the
forward-looking statements, including, but not limited to, risks
and uncertainties related to: the highly competitive nature of, and
the increasing consolidation of, the beauty products distribution
industry; anticipating and effectively responding to changes in
consumer preferences and buying trends in a timely manner;
potential fluctuation in our same store sales and quarterly
financial performance; our dependence upon manufacturers who may be
unwilling or unable to continue to supply products to us; the
possibility of material interruptions in the supply of products by
our third-party manufacturers or distributors; products sold by us
being found to be defective in labeling or content; compliance with
current laws and regulations or becoming subject to additional or
more stringent laws and regulations; the success of our e-commerce
businesses; product diversion to mass retailers or other
unauthorized resellers; the operational and financial performance
of our franchise-based business; successfully identifying
acquisition candidates and successfully completing desirable
acquisitions; integrating acquired businesses; opening and
operating new stores profitably; the impact of the health of the
economy upon our business; the success of our cost control plans;
protecting our intellectual property rights, particularly our
trademarks; the risk that our products may infringe on the
intellectual property of others or that we may be required to
defend our intellectual property rights; conducting business
outside the United States; disruption in our information technology
systems; a significant data security breach, including
misappropriation of our customers’ or employees’ confidential
information, and the potential costs related thereto; the negative
impact on our reputation and loss of confidence of our customers,
suppliers and others arising from a significant data security
breach; the costs and diversion of management attention required to
investigate and remediate a data security breach; the ultimate
determination of the extent or scope of the potential liabilities
relating to our 2014 data security incident and this current
incident; the timing, effectiveness and expense of our planned
payment security updates; our ability to attract or retain highly
skilled management and other personnel; severe weather, natural
disasters or acts of violence or terrorism; the preparedness of our
accounting and other management systems to meet financial reporting
and other requirements and the upgrade of our existing financial
reporting system; being a holding company, with no operations of
our own, and depending on our subsidiaries for cash; our ability to
execute and implement our common stock repurchase program; our
substantial indebtedness; the possibility that we may incur
substantial additional debt, including secured debt, in the future;
restrictions and limitations in the agreements and instruments
governing our debt; generating the significant amount of cash
needed to service all of our debt and refinancing all or a portion
of our indebtedness or obtaining additional financing; changes in
interest rates increasing the cost of servicing our debt; the
potential impact on us if the financial institutions we deal with
become impaired; and the costs and effects of litigation.
Additional factors that could cause actual events or results to
differ materially from the events or results described in the
forward-looking statements can be found in our filings with the
Securities and Exchange Commission, including our most recent
Annual Report on Form 10-K for the year ended September 30, 2014,
as filed with the Securities and Exchange Commission. Consequently,
all forward-looking statements in this release are qualified by the
factors, risks and uncertainties contained therein. We assume no
obligation to publicly update or revise any forward-looking
statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20150528006274/en/
Investor RelationsSally Beauty Holdings, Inc.Karen Fugate,
940-297-3877orMedia RelationsEdelmanDavid J. Chamberlin,
214-443-7560david.chamberlin@edelman.com
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