High demand for hair color products among professional stylists and DIY enthusiasts alike led beauty supply retailer Sally Beauty to report strong sales for the first fiscal quarter of 2022.
The Texas-based company announced its earnings in a news release Wednesday (Feb. 2), noting that its first quarter consolidated net sales reached $980.3 million, up 4.7% from the prior year, with a comparable sales increase of 6.1%. Global eCommerce sales were $81 million, representing 8.3% of net sales for the quarter.
“We remain focused on our roadmap for fiscal 2022, which includes leveraging our digital platform, driving loyalty and personalization, delivering product innovation and advancing our supply chain,” said CEO Denise Paulonis. “We believe the business is well positioned to benefit from ongoing demand for our products and services, pursue new growth opportunities and build long-term shareholder value.”
Sally Beauty’s consolidated gross profit for the first quarter was $500.1 million versus $470.7 million last year year, a 6.2% increase. The company’s consolidated gross margin was 51%, an increase of 70 basis points compared to 50.3% in 2021, mainly showing higher product margins at both Sally Beauty and Beauty Systems Group, with these numbers offset somewhat by higher distribution and freight costs.
Read more: Sally Beauty Sees Brightly-Colored Future As Consumers Focus On Self-Expression
The company says it was operating 136 fewer stores this quarter compared to the prior year. As PYMNTS reported in July, Sally Beauty last year began experimenting with the closure of around 90 stores to gauge customer reaction and see whether sales moved online or to other retail locations.
“We have a significant opportunity to continue leveraging our digital capabilities while optimizing the store portfolio to deliver a superior omni experience for the customer,” then-CEO Chris Brickman said at the time.
Learn more: NielsenIQ, Sally Beauty Team on Sales Data Analytics Program
Last month, Sally Beauty teamed up with retail measurement and consumer analytics firm NielsenIQ to work on analytics in the beauty and personal care industry.
The partnership makes NielsenIQ the exclusive information provider for Sally Beauty, collaborating on a strategic data sharing and licensing program, which will let manufacturers gauge comprehensive online and offline sales and determine strategies.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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