Sally Beauty posts 6% sales rise in Q2

By

Robin Driver

Published
May 7, 2021

Professional beauty supplies seller Sally Beauty Holdings, Inc. announced second-quarter sales of $926.3 million on Thursday, an increase of 6.3% from $871.0 million in the prior-year period, despite ongoing disruptions related to the Covid-19 pandemic. Same store sales increased 6.5% year over year, with global e-commerce sales rising 56%.

 
According to the company, sales growth in the second quarter ended March 31, 2021, was driven by the positive impact of improved consumer confidence in the U.S., government stimulus payments and the easing of health restrictions in salons.
 
Over the course of the quarter, between 35% and 37% of the company’s global stores were operating with reduced capacity, while the percentage of stores that were temporarily closed varied from 4% to 8%.

Quarterly net sales in the company’s Sally Beauty Supply segment totaled $542.7 million, up 4.5% from the same period in the previous year. The segment’s businesses in the U.S. and Canada accounted for 86% of its sales and experienced a 13.9% increase in same store sales, while Europe and Latin America posted declines.
 
In the Beauty Systems Group segment, net sales rose 9.1% year over year to $383.7 million, reflecting a same store sales increase of 9.9%.
 
Sally Beauty’s quarterly net earnings were $38.3 million, or $0.34 per diluted share, compared to $13.4 million, or $0.12 per diluted share, in the prior-year period.
 
“We are pleased to report strong financial results across all of our key measures despite extensive store closures in parts of our international territories and salon closures in California in January,” said Sally Beauty president and CEO Chris Brickman in a release. “Our top line performance, coupled with ongoing strength in gross margin, resulted in significant earnings per share growth compared to the prior year.”
 
Year to date, Sally Beauty’s net sales totaled $1.86 billion, up 0.6% from $1.85 billion in the same six-month period in the previous year. Net earnings were $95.5 million, or $0.84 per diluted share, up from $66.6 million, or $0.57 per diluted share.
 
Looking forward, due to continued uncertainty about the evolution of the Covid-19 pandemic, Sally Beauty did not provide detailed financial guidance for the third quarter or the full fiscal year.
 
“In the second half of the year, we will continue to focus on growing customer engagement and loyalty, leveraging our new capabilities in support of our mission to recruit and retain color customers, and implementing the remaining steps in our successful transformation journey, which remains on track to be substantially completed by the end of the year,” explained Brickman, commenting on the company’s plans in the future.
 
As of the end of the second quarter, Sally Beauty operates 5,004 stores, representing a net decrease of 71 locations compared to the same time last year.