Sally Beauty Holdings has released its third quarter 2023 results, which showed net sales were $931 million, as compared to $961.5 million in the previous year.
Global e-commerce sales increased 3% to $83 million or 8.9% of consolidated net sales for the quarter.
Consolidated gross profit for the third quarter was $474.7 million, as compared to $490.2 million in the previous year.
Nine-month results were $2,806,775, as compared to $2,853,105 in the previous year.
Sally Beauty Supply
Net sales for Q3 were $534.9 million, as compared to $551.7 million in the previous year.
Nine-month results were $1,614,650, as compared to $1,639,040.
Beauty Systems Group
Net sales for Q3 were $396.1 million, as compared to $409. 7 million in the previous year.
Nine-month results were $1,192,125, as compared to $1,214,065.
Fiscal Year 2023 Guidance
Net sales are expected to decline by low-single digits, as compared to the previous year, reflecting the unfavorable impact due to store closures from the company’s store optimization efforts, net of expected sales recapture rates.
Adjusted operating margin is now expected to be in the range of 9.0% and 9.4%.
Happy Beauty Co. Concept Store
The company launched an initial pilot store for Happy Beauty Co. in Dallas/Fort Worth, Texas in late June.
All of the merchandise is priced under $10 with product offerings encompassing four key categories: cosmetics and facial care, bath and body, nails and hair, featuring both third-party brands and the company’s owned brands.
Denise Paulonis, president and CEO, said, "We are pleased to report another solid quarter with net sales of $931 million, adjusted gross margin of 51%, adjusted EBITDA of $119 million and free cash flow of $32 million. Three quarters into our fiscal year, we are on track with our operating initiatives and the financial guidance we originally laid out for fiscal 2023."
