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Sally Beauty Announces "Disappointing" Results

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Sally Beauty Holdings has announced third quarter 2015 net sales of $967.9 million, an increase of 2.0% from the fiscal 2014 third quarter. Same-store sales grew 3.1% versus 2.1% in the same period 2014.

Consolidated same store sales for fiscal 2015 are now forecasted to be in the range of 2.5% to 3.0%, versus the original growth projection of slightly above 3%.

Consolidated gross profit for the fiscal 2015 third quarter was $481.3 million, an increase of 1.2% over gross profit of $475.7 million for the fiscal 2014 third quarter.

New store openings, IT upgrades, advertising costs and 2014 security data woes led to an increase in expenses for the period, according to the company.

“We are disappointed in the Q3 results for our Sally business, but not discouraged,” said president and CEO Christian Brickman. “It is taking longer than we expected for traffic from the non-Beauty Club Card customer to recover, but we still have great confidence that we are moving in the right direction. Over the next several quarters, we expect continued progression in our consolidated Sally same store sales back to historical trend levels of 3% to 4% as we plan to complete the execution of our planned initiatives and our customers have the chance to experience these changes in our stores ... [O]ur Sally team continues to be laser focused on driving sales progression. To deliver on this objective, we will invest in national TV for the Sally brand through our sponsorship of Project Runway which will begin to air early August."

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