Sally Beauty Sales Rise In Q2

In the second quarter ended March 31, Sally Beauty Holdings recorded net earnings of $60.2 million, or 41 cents per diluted share, versus $61.5 million, or 39 cents per diluted share, in the year-earlier quarter.

Adjusted net earnings were $61.3 million, or 41 cents per diluted share, versus $62.5 million, or 39 cents per diluted share, in last year’s second quarter.

Earnings matched an analyst average estimate published by MarketBeat.

Consolidated comparable store sales advanced 4% versus the 2015 quarter, Sally Beauty noted. Consolidated net sales were $980.1 million, up 4.5% from last year’s period, driven by comps and the addition of new stores. Changes in foreign currency exchange rates in the quarter resulted in a negative $12.3 million impact on sales, the company asserted.

Adjusted net earnings exclude charges of $1.1 million, net of tax, associated with an asset impairment charge, management transition costs and charges related to a data security incident, the company reported.

In the Sally Beauty supply segment, focused on consumers, the company posted earnings of $102 million versus $106.1 million in last year’s quarter as comps gained 2.3% and sales advanced 2.7% to $572.1 million.

Chris Brickman, Sally Beauty president and CEO, said, “Looking ahead to the third quarter, we will continue to bring more innovation to our business, remerchandising our brush and comb section in all Sally stores, introducing a color education center into approximately 1,600 stores, launching the Bitzy cosmetic brand at our cash wrap and releasing a mobile application for stylists through our beauty systems group business to help enable stylists to run their business via their smart phone.”