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Published
Feb 4, 2016
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Sally Beauty Q1 earnings released, sales are up

Published
Feb 4, 2016

Texas based Sally Beauty Holdings, Inc., which operates through businesses Sally Beauty Supply and Beauty Systems Group, announced their Q1 results today, reporting combined sales up 3.5%, and in store sales growth of 3.9% over last year.


“We are off to a solid start for fiscal year 2016,” stated Chris Brickman, President and CEO. “We drove same store sales improvement in our Sally business.” Specifically, in Q1 of 2016, same store sales grew 3.9% compared to only 2.3% in the first quarter of 2015.
                   
Gross margin expanded 40 base points, with Brickman noting, “implementation of our pricing and margin improvement initiatives resulted in gross profit margin expansion consistent with our previously stated guidance.”

Brickman did warn of a rough time ahead in the second quarter. “As we launch our hair care solutions center in almost 3,000 Sally U.S. stores, invest in a significant TV campaign to re-engage retail consumers at Sally and ramp up new business development programs globally,” Brickman cautioned of the challenges the company anticipates facing in Q2.

He ended optimistically though, pointing out “despite these short term challenges, we are excited about the upcoming initiatives and believe that they will help us accelerate growth in our Sally business and deliver on our full-year earnings.”


 

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