Sally Beauty Holdings, Inc. announced financial results for the fiscal 2014 second quarter. “Overall performance was solid with positive consolidated same store sales growth of 1%, sales growth of 2.4% and 10 bps of gross margin expansion,” stated Gary Winterhalter, chairman, president and CEO. “Extremely unfavorable weather in the U.S. resulted in 5,426 store days closed in the fiscal 2014 second quarter versus 1,328 in the prior year, resulting in lower traffic and sales growth in the U.S. Sally and CosmoProf stores. The good news is that we saw positive traffic performance in the regions that were not materially impacted by store closures, which gives me confidence that we are on the right track to improve retail traffic in the Sally U.S. stores.”
For the fiscal 2014 second quarter, consolidated net sales were $919.5 million, an increase of 2.4% from the fiscal 2013 second quarter. Fiscal 2014 second quarter sales increase is attributed to the addition of new stores and growth in same store sales. The impact from changes in foreign currency exchange rates in the fiscal 2014 second quarter was not material. Consolidated same store sales in the fiscal 2014 second quarter increased by 1% compared to a decline of 0.8% in the fiscal 2013 second quarter. Fiscal 2014 second quarter sales performance in both business segments in the U.S. were negatively impacted by lower traffic driven primarily by unfavorable weather.
For the Sally Beauty Supply division, sales were $569.6 million for the fiscal 2014 second quarter, up 2.5% from $556 million in the fiscal 2013 second quarter. Sales growth is attributed to net new store openings, same store sales growth and a favorable impact from changes in foreign currency exchange rates of $2.5 million. Same store sales improved by 0.5% when compared to a decline of 1.6% in the fiscal 2013 second quarter. Same store sales growth in the fiscal 2014 second quarter was negatively impacted by lower traffic driven primarily by unfavorable weather. Net store base increased by 120 over the fiscal 2013 second quarter for a total store count of 3,477.
For the Beauty Systems Group division, sales were $349.9 million for the second fiscal quarter of 2014 for Sally Beauty Holdings, up 2.2% from $342.3 million in the fiscal 2013 second quarter. Sales growth is attributed to net new store openings and same store sales growth and was partially offset by the unfavorable impact from changes in foreign currency exchange rates of $2.4 million. Same store sales growth of 2.2% versus growth of 1.3% in the fiscal 2013 second quarter. Same store sales growth in the fiscal 2014 second quarter was negatively impacted by lower traffic driven primarily by unfavorable weather. Net store count was 1,254, an increase of 53 stores over the fiscal 2013 second quarter.
Additional and more detailed information these results from Sally Beauty Holdings is available here.
