As we previously stated on March 5th, our systems detected an
unauthorized attempted intrusion into our Sally Beauty Supply LLC
network. At the time of this discovery, we immediately engaged a
top-tier forensics firm (Verizon) to investigate this security incident.
As a result of this ongoing investigation, we have now discovered
evidence that fewer than 25,000 records containing card-present (track
2) payment card data have been illegally accessed on our systems and we
believe it may have been removed. As experience has shown in prior data
security incidents at other companies, it is difficult to ascertain with
certainty the scope of a data security breach/incident prior to the
completion of a comprehensive forensic investigation. As a result, we
will not speculate as to the scope or nature of the data security
incident.
We take this criminal activity very seriously. We continue to work
diligently with Verizon on this investigation and are taking necessary
actions and precautions to mitigate and remediate the issues caused by
this security incident. In addition, we are working with the United
States Secret Service on their preliminary investigation into the matter.
Customers are our top priority at Sally Beauty, and we will be
responding to customers' needs concerning this security incident. Please
check our website sallybeautyholdings.com in the coming days to learn
about the progress of our work to address the security incident, the
status of our investigation, and steps we will be taking to assist any
affected customer. We will be providing appropriate notifications to
affected consumers and others, as necessary, as the facts develop and we
learn more.
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 $3.6 billion annually. Through the Sally Beauty Supply and Beauty
Systems Group businesses, the Company sells and distributes through
4,700 stores, including approximately 200 franchised units, throughout
the United States, the United Kingdom, Belgium, Chile, France, the
Netherlands, Canada, Puerto Rico, Mexico, Ireland, Spain and Germany.
Sally Beauty Supply stores offers 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 statement.
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 changes in consumer
preferences and buying trends and managing our product lines and
inventory; 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 beauty supply
products by our manufacturers or third-party distributors; products sold
by us being found to be defective in labeling or content; compliance
with laws and regulations or becoming subject to additional or more
stringent laws and regulations; product diversion; the operational and
financial performance of our franchise-based business; the success of
our e-commerce 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; conducting business outside the United
States; disruption in our information technology systems, including as a
result of natural or man-made events (caused by us, by our service
providers or others) or by computer viruses, or physical or electronic
break-ins; reports that our information systems were breached; a
significant data security breach, including misappropriation of our
customers’ or employees’ personal information, the potential costs
related thereto and the negative impact on our reputation and loss of
confidence of our customers, suppliers and others; a failure to detect,
determine the extent of and appropriately respond to a significant data
security breach; costs and diversion of management attention required to
investigate and remediate a data security breach, including any
governmental investigations or litigation relating thereto; 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
financial reporting system; being a holding company, with no operations
of our own, and depending on our subsidiaries for cash; 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 most recent Annual Report on Form 10-K
for the year ended September 30, 2013, 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.
Copyright Business Wire 2014