Sally Beauty Holdings, Inc., which operates as a professional hair and beauty supply company based in Denton, Texas, has recently announced a significant surge in sales during the third quarter of this year. The company achieved a remarkable total sales figure of $1.02 billion in Q3, marking an impressive 45.0% increase compared to the same period last year when sales amounted to $705.3 million.

There are several factors that have contributed to this growth in sales. Firstly, there has been a rise in consumer confidence in the United States, which has positively impacted the company’s performance. Additionally, the easing of Covid-19 restrictions in international markets has played a role in driving sales growth. It is also worth noting that Sally Beauty operated 84 fewer stores during the quarter as compared to the previous year.

A notable highlight is the company’s global e-commerce sales, which reached $71 million. These online sales accounted for 7.0% of the company’s total net sales. This emphasizes the increasing significance of online sales channels for Sally Beauty.

Breaking down the divisions, Sally Beauty Supply reported net sales of $602.7 million, which represents a 45.1% increase compared to the prior-year period. The division’s same store sales experienced a significant rise of 43.3%, primarily driven by a 35.2% increase in the U.S. and Canada business, contributing to 79% of the division’s sales.

Similarly, the Beauty Systems Group witnessed net sales of $419.7 million, showing a year-over-year increase of 44.8%. Same store sales for this division recorded an even higher rise of 47.8%.

When considering the overall company performance, Sally Beauty Holdings reported net earnings of $76.2 million, which translates to $0.66 per diluted share. This turnaround is striking compared to the net loss of $23.5 million, or $0.21 per diluted share, experienced during the third quarter of the previous year.

Chris Brickman, the President and CEO of Sally Beauty Holdings, expressed satisfaction with the company’s strong performance in the quarter. He attributed the success to growing consumer demand and the exceptional execution of the company’s teams. He also emphasized the company’s ability to deliver against strategic priorities, despite the challenges posed by the pandemic.

Moving forward, Sally Beauty Holdings remains focused on completing its ongoing multi-year transformation in 2021. As they approach the fiscal year-end and enter 2022, the company aims to scale and optimize its omni-channel services to further enhance customer satisfaction.

In terms of year-to-date performance, Sally Beauty’s sales for the year currently stand at $2.88 billion, reflecting a 12.8% increase from the same period last year. Net earnings for the year reached $171.7 million, or $1.50 per diluted share, showcasing a significant improvement from the previous year’s figures of $43.06 million, or $0.37 per diluted share.

Overall, Sally Beauty Holdings has demonstrated robust financial performance in the third quarter, primarily driven by increased consumer demand and the effective execution of strategic initiatives. With its focus on omni-channel services and ongoing transformation efforts, the company is well-positioned for continued success in the beauty supply industry.

Helpful Links:
1. Sally Beauty Holdings Official Website
2. Sally Beauty Holdings Bloomberg Profile