Sally Beauty same store sales drives Q2 growth

By

Obi Anyanwu

Published
May 9, 2016

Sally Beauty Holdings, Inc. announced on Thursday its financial results for the second quarter of fiscal 2016. The company’s results were in line with its expectations, according to President and CEO Chris Brickman.

 
Second quarter consolidated net sales were $980.1 million, an increase of 4.5% from last year, which is attributed to 4% same stores growth and the addition of new stores. Consolidated gross profit increased 4.3% to $487.5 million from $476.5 million and represented 49.7% of sales. Adjusted EBITDA was $151 million and the company repurchased 3.8 million shares of common stock for $100 million.
 
Sally Beauty Supply sales increased 2.7% to $587.6 million from $572.1 million, same store sales grew 2.3% compared to 1.4% in the previous year and gross margin was flat at 55.3%.

Beauty Systems Group sales were $392.4 million, a 7.3% increase from $365.6 million, same stores sales increased 7.7% compared to 5.9% in the second quarter of 2015 and gross margin increased 10 basis points to 41.4%.
 
“Our second quarter results were consistent with our expectations,” stated Chris Brickman, President and Chief Executive Officer. “Our BSG business continued to deliver strong results, and, as expected, Sally experienced some modest sales headwinds during the quarter. The transition to a solution-based offering in our second largest category in all 3,000 Sally stores was a major undertaking, and the team did an excellent job of executing on this initiative in a short period of time. I believe the changes we implemented, combined with the additional investments made in TV advertising during March, will further our efforts to drive traffic and sales growth from the retail customer.”
 
Brickman added that the company will continue to bring more innovation in the third quarter with the introduction of a color education center at 1,600 stores, the launch of Bitzy cosmetic brand at cash wraps and the release of a new mobile application for stylists.