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Sally Beauty Net Sales Up 2.8% for Quarter
Posted: August 1, 2013
Sally Beauty Holdings, Inc. announced financial results for the fiscal 2013 third quarter. “Our fundamental business drivers are solid, and we remain confident in the long term health of our business,” stated Gary Winterhalter, chairman, president and CEO of Sally Beauty Holdings. “During the third quarter, customer traffic at our BSG and Sally International businesses was healthy; however, store traffic from the non-Beauty Club Card customer in the Sally U.S. business was soft. We’ve launched several initiatives specifically to address this customer and remain optimistic that traffic will recover over the next few months.”
Consolidated net sales were $912.1 million, an increase of 2.8% from the fiscal 2012 third quarter. The fiscal 2013 third quarter sales increase is primarily attributed to the addition of new stores, which contributed 150 bps of sales growth. The impact from changes in foreign currency exchange rates in the fiscal 2013 third quarter was not material. Consolidated same store sales in the fiscal 2013 third quarter grew by 0.7% compared to growth of 5.2% in the fiscal 2012 third quarter. Same store sales growth was negatively impacted by lower non-Beauty Club Card traffic in the Sally U.S. stores and difficult comparisons against strong growth in certain product categories in the Sally U.S. business.
Consolidated gross profit for the fiscal 2013 third quarter was $457.1 million, an increase of 2.9% over gross profit of $444.4 million for the fiscal 2012 third quarter. Gross profit as a percentage of sales was 50.1%, flat when compared to the fiscal 2012 third quarter.
For its Sally Beauty Supply division, sales were $559.2 million, up 1% from $553.4 million in the fiscal 2012 third quarter. Sales growth is attributed to net new store openings and strong performance in the international businesses and was partially offset by a decline in same store sales in the U.S. business. Same-store sales declined by 0.8% compared to growth of 5.2% in the fiscal 2012 third quarter. Same store sales performance in the fiscal 2013 third quarter was negatively impacted by lower traffic from the U.S. non-Beauty Club Card customers compared to fiscal 2012 third quarter and difficult comparisons against growth in certain categories in the prior year.
And for its Beauty Systems Group division, sales were $353 million, up 5.8% from $333.6 million in the fiscal 2012 third quarter, and same store sales growth were 4.6% versus growth of 5.3% in the fiscal 2012 third quarter. Sales growth in the fiscal 2013 third quarter was driven by same store sales growth and net new stores.