Sally Beauty reports record first quarter
The provider of beauty supplies and hair products reported consolidated net sales of $704.9m, up 9.2 percent on the same period last year, with same store sales increasing 3.8 percent.
“We are pleased to report strong financial results in the fiscal 2010 first quarter – surpassing $700 million in quarterly revenue for the first time ever,” Gary Winterhalter, president and CEO of Sally Beauty.
Strong performance from both business segments
Both of the company’s business segments witnessed an increase in sales, with Sally Beauty Supply recording net sales of $438.3m, an increase of 6.8 percent compared to the same period last year.
Beauty Systems Group reported a 13.4 percent increase in net sales, reaching $256.5m for the three months ending December 31.
The increase in sales growth was partly attributed to the addition of new stores to both divisions, with the Sally Beauty Supply division benefiting from 87 new company-operated stores in 2009, and 81 new stores added to the Beauty Systems Group.
Acquisitions also boosted sales
Recent acquisitions made by Sally Beauty have also helped to boost sales for the group, as well as increasing the company’s footprint in certain geographical areas.
Beauty Systems Group acquired professional products distributor, Schoeneman Beauty, in October last year, whose strong presence in the Northeastern region of the US resulted in BSG boasting the largest channel share in this territory.
In December, Sally Beauty Supply acquired Belgian-based Sinelco, a distributor of professional beauty products in Europe, which supplied over 1,500 customers across 35 countries
“The addition of Sinelco, which sources many of its products in Asia, will provide us with the opportunity to sell to distributors of professional products in many countries in which we lack a physical presence,” vice president of Sally Beauty, Chad Selvidge, said at the time of the acquisition.
Continuing existing strategy for the remainder of 2010
For the remainder of the fiscal year, Sally Beauty intends to continue with the successful strategy that led to an increase in sales in the company’s latest quarter.
“We plan to continue investing in company growth via acquisitions and organic store openings while reducing our long-term debt,” said Winterhalter.
