Sales increase of 2.8% primarily attributed to addition of new stores
Sally Beauty Holdings has announced financial results for the third quarter 2013, with consolidated net sales totalling $912.1m, up 2.8% on the prior year period.
The company puts the sales increase primarily down to the addition of new stores, which contributed 150 basis points (bps) of sales growth. However, consolidated same store sales grew by 0.7% compared to growth of 5.2% in the same quarter last year. According to Sally Beauty, this growth was “negatively impacted by lower non-Beauty Club Card traffic in the Sally US stores and difficult comparisons against strong growth in certain product categories in the Sally US business”.
Meanwhile, consolidated gross profit totalled $457.1m, up 2.9%, while net earnings reached $72.5m, with earnings per share of $0.42, up 13.5%. Gary Winterhalter, Chairman, President and Chief Executive Officer of Sally Beauty, said: “Our fundamental business drivers are solid and we remain confident in the long term health of our business. During the third quarter, customer traffic at our BSG and Sally International businesses was healthy, however, store traffic from the non-Beauty Club Card customer in the Sally US business was soft. We’ve launched several initiatives specifically to address this customer and remain optimistic that traffic will recover over the next few months. On a consolidated basis, we improved SG&A leverage by 50 bps and grew earnings per share by 13.5%. During the third quarter, we purchased $94m or 3.1 million shares of our stock. As of the end of June we had $559m remaining on our current authorisation.”