Sally Beauty Holdings Rise In Net Sales Amid Accelerating Consumer Demand

Sally Beauty Holdings, which runs approximately 5,000 stores, reported that its second-quarter consolidated same-store sales climbed 6.5 percent as its net sales also increased amid a rise in domestic consumer demand.

“In the U.S., we saw an acceleration in consumer demand in the latter part of the quarter, which drove a net sales increase of 6.3 percent,” President and Chief Executive Officer Chris Brickman said in an earnings announcement.

For the Sally Beauty Supply segment, the company posted $542.7 million in net sales for the quarter, marking a 4.5 percent increase in contrast to the prior year. Net sales were driven mainly by favorable impact in the U.S. from rising consumer confidence and government stimulus payments, but they were offset, in part, by ongoing pandemic required store closures in international territories and running 76 fewer retail locations in contrast to the previous year.

And, for the Beauty Systems Group segment, the company posted $383.7 million in net sales, marking a rise of 9.1 percent in contrast to the previous year, fueled mainly by favorable impact from the relaxation of pandemic restrictions throughout the country and increased operating capacities in salons.

All in, Sally Beauty Holdings posted $65.5 million in adjusted net earnings, which marked a 143 percent jump from $27 million in the past year. Adjusted net earnings per share soared by 148 percent to 57 cents.

“Our top line performance, coupled with ongoing strength in gross margin, resulted in significant earnings per share growth compared to the prior year,” Brickman said in the announcement.

The news comes as Estée Lauder said on May 3 that “soft demand” for makeup and ongoing coronavirus outbreaks throughout the globe crimped its newest results, but the company said it was seeing indications of heightened demand in Asia.

Estée Lauder said that its fiscal third quarter sales increased 16 percent to $3.8 billion for the three months concluding March 31, while it earned $456 million compared to the year-ago loss it recorded during the early phases of the pandemic.