Sally Beauty ends year with a sales fall, CEO still optimistic
today Nov 9, 2018
Despite an increased focus on technology to bolster its store network, Sally Beauty Holdings Inc. recorded a 1.5 percent decline in same-store sales for its fiscal year ended September 30, 2018.
Consolidated net sales were also down 0.1 percent to $3.93 billion.
Adjusted EBITDA decreased 5.9 percent, to $587.5 million, from the previous year, missing analyst expectations.
The company reduced its debt from $63.5 million at the end of the third quarter to zero at the end of the fourth quarter.
Meanwhile, in its fourth quarter, consolidated same-store sales decreased 0.2 percent, while consolidated net sales were $966 million, down 0.8 percent, compared to the same period last year.
Still, CEO Chris Brickman said the retailer's transformation plan is on track.
“We are playing to win by re-focusing our business around our differentiated core of hair color and care, improving our execution of basic retail fundamentals and advancing our digital commerce capabilities. We are continuing to drive costs out of the business, which is enabling investment in our transformation,” said Brickman, in a news statement.
“We recognize that we still have work to do. With our key accomplishments from the quarter and the recent management changes we have implemented, we are confident that we are moving in the right direction.”
The company is particularly excited about the launch of box color across the U.S and said it will be building awareness of its new product launches into fiscal 2019.
The company, which operates 5,156 stores across the United States, South America and Europe, also launched its new Sally Beauty Loyalty Program in all Sally Beauty Supply stores, which is promising, but wont be effective any time soon.
Moving forward, Sally Beauty says its focused on the site redesigns of its e-commerce business in both business segments and will be testing new point-of-sale systems in both Sally Beauty Supply and Beauty Systems Group.
For fiscal 2019, the company expects full year consolidated same-store sales to be approximately flat, and full year adjusted earnings are expected to decline slightly as compared to the prior year.
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