Sally Beauty Holdings has announced its first quarter 2023 results, which showed consolidated net sales were $957 million, a decline of 2.4% as compared to the previous year.
The company was operating 395 fewer stores at the end of the quarter, as compared to the previous year.
Global e-commerce sales increased 14% to $91 million, representing 9.5% of net sales.
Consolidated gross profit for the first quarter was $488.6 million, as compared to $500.1 million in the previous year, a decrease of 2.3%.
Sally Beauty Supply
Segment net sales were $549.5 million in the quarter, a decrease of 2.1% as compared to the previous year.
Segment e-commerce sales increased 13% to $35 million, or 6.4% of segment net sales for the quarter.
The Sally Beauty businesses in the United States and Canada represented 78% of segment net sales for the quarter and had a comparable sales increase of 2.6%.
Beauty Systems Group
Segment net sales were $407.6 million in the quarter, a decrease of 2.7% as compared to the previous year.
Segment comparable sales decreased 1.5% in the first quarter, driven primarily by continued inflationary pressures resulting in stylists buying closer to need.
Fiscal Year 2023 Guidance
Net sales are expected to decline by low-single digits compared to the previous year.
Denise Paulonis, president and CEO, said, "We are pleased with our first quarter results, which reflect strong execution from our teams and a continuing focus on our strategic initiatives designed to inspire a more colorful, confident and welcoming world. During the first quarter, we delivered net sales of $957 million, Adjusted Gross Margin of 51% and Adjusted EBITDA of $126 million. In addition, we successfully implemented our distribution center consolidation and store optimization plan, furthering our goal to maximize the value of our large real estate portfolio, optimize our supply chain and provide a seamless omni-channel experience to our customers. As we execute on our growth agenda, we remain focused on serving our customers and bringing a heightened level of education, expertise, innovation and services to both our Sally and BSG businesses. We remain confident that our initiatives will enable us to drive long-term growth and shareholder value."
