Sally Beauty Holdings, Inc. announced financial results for the fiscal 2014 third quarter. For the fiscal 2014 third quarter, consolidated net sales were $949.3 million, an increase of 4.1% from the fiscal 2013 third quarter. The fiscal 2014 third quarter sales increase is primarily attributed to growth in same store sales and the addition of new stores. The impact from favorable changes in foreign currency exchange rates in the fiscal 2014 third quarter was $3.7 million. Consolidated same store sales in the fiscal 2014 third quarter grew by 2.1% compared to growth of 0.7% in the fiscal 2013 third quarter.
“I am pleased with the sales improvement in our Sally U.S. business as well as solid performance in our BSG segment,” stated Gary Winterhalter, chairman and CEO of Sally Beauty Holdings. “On a consolidated basis, same store sales grew 2.1% with sales growth of 4.1%. Although consolidated gross margin of 50.1% was flat when compared to the prior year, it’s only the third time in company history that we’ve reached consolidated gross margin above 50%. During the third quarter, we purchased $176 million, or 6.9 million shares, of our stock, which reflects our confidence in the stability of our cash flow and financial performance. As of the end of June, we had $155 million remaining on our current stock repurchase authorization.”
For the company’s Sally Beauty Supply business segment, the fiscal 2014 third quarter recorded sales of $584.5 million, up 4.5% from $559.2 million in the fiscal 2013 third quarter. Sales growth was primarily attributed to net new store openings and same store sales growth, and the impact from favorable changes in foreign currency exchange rates in the fiscal 2014 third quarter was $5.2 million. Same store sales increased 1.8% compared to a decline of 0.8% in the fiscal 2013 third quarter, as same store sales performance in the fiscal 2014 third quarter was positively impacted by improved customer traffic in the Sally U.S. business compared to fiscal 2013 third quarter.
For its Beauty Systems Group business division, the company recorded sales of $364.8 million for its fiscal 2014 third quarter, up 3.4% from $353 million in the fiscal 2013 third quarter. Sales growth is primarily driven by same store sales growth, acquisitions and net new store openings. The impact from unfavorable changes in foreign currency exchange rates in the fiscal 2014 third quarter was $1.5 million. Same store sales growth was 2.7% versus growth of 4.6% in the fiscal 2013 third quarter.
Find additional information on this fiscal 2014 Q3 report from Sally Beauty Holdings here.
