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Sally Beauty Sales Inch Up

Posted: May 2, 2013

Sally Beauty Holdings, Inc. announced financial results for the fiscal 2013 second quarter. “Our fundamental business drivers are solid and we executed well on our operating initiatives in the second quarter,” stated Gary Winterhalter, chairman, president and CEO. “Our financial performance reflects the difficult comparisons against record growth in certain product categories in the prior year and lower traffic driven in part by two fewer days compared to the prior year quarter. We are optimistic that same store sales growth in the second half of fiscal year 2013 will be 3% to 4%, resulting in full year growth of 2.0% to 2.5%. We are pleased with our capability to drive shareholder value via our stock buyback initiatives. From May 2012 through March 2013, we have purchased 19.6 million shares spending over half-a-billion dollars; as of March 31, we had $653 million remaining on our current authorization.”

For the fiscal 2013 second quarter, consolidated net sales were $898.2 million, an increase of 1% from the fiscal 2012 second quarter. Fiscal 2013 second quarter sales increase is attributed to the addition of new stores offset by softness in same store sales. The impact from changes in foreign currency exchange rates in the fiscal 2013 second quarter was not material. Consolidated same store sales declined in the fiscal 2013 second quarter by 0.8% compared to record growth of 9.1% in the fiscal 2012 second quarter. Same store sales growth was negatively impacted by lower traffic driven in part by two fewer days in the quarter compared to fiscal 2012 second quarter and difficult comparisons against strong growth in certain product categories in the Sally Beauty U.S. business.

For the Sally Beauty Supply division, sales for 2013 second quarter were $556 million, up 0.4% from $554 million in the fiscal 2012 second quarter. Sales growth is attributed to net new store openings and was partially offset by softness in same store sales growth. Same store sales declined by 1.6% when compared to record growth of 9.3% in the fiscal 2012 second quarter. Same store sales growth in the fiscal 2013 second quarter was negatively impacted by lower traffic driven in part by two fewer sales days in the quarter compared to fiscal 2012 second quarter and difficult comparisons against record growth in certain categories in the prior year.

For the Beauty Systems Group division, the second quarter 2013 saw sales of $342.3 million, up 2.1% from $335.3 million in the fiscal 2012 second quarter. Same store sales growth of 1.3% versus record growth of 8.7% in the fiscal 2012 second quarter. Same store sales growth in the fiscal 2013 second quarter was negatively impacted by lower traffic driven in part by two fewer sales days in the quarter compared to fiscal 2012 second quarter.

A more detailed second quarter 2013 financial report from Sally Beauty Holdings is available here.