THE WHAT? Sally Beauty Holdings has reported consolidated net sales of US$1.02 billion, a YOY increase of 45 percent, mainly driven by growing consumer confidence in the U.S. post pandemic, as well as easing COVID-19 restrictions globally.
THE DETAILS Q3 consolidated gross profit rose 59.8 percent year on year to US$514.4 million. Global e-commerce sales were $71 million, representing 7.0% of net sales.
The Sally Beauty Supply segment saw a same sales increase of 43.3 percent in the third quarter, with the Sally Beauty businesses in the U.S. and Canada representing 79 percent of the segment sales in the quarter. Europe and Latin America also reported significant same store sales increases.
The Beauty Systems Group segment’s total same store sales increase of 47.8 percent in Q3, with net sales reaching $419.7 million, an increase of 44.8% compared to the prior year.
THE WHY? Chris Brickman, President and Chief Executive Officer, heralded ‘improving macro factors in the U.S.’ as a primary growth driver.
He said, “We are pleased to report another strong quarter, which was driven by strengthening consumer demand and solid execution by our teams. The combination of improving macro factors in the U.S. and the easing of COVID-19 restrictions across our international territories, drove net sales over $1 billion. Our top line performance, coupled with ongoing strength in gross margin, resulted in significant growth in earnings.
“We remain focused on the completion of our multi-year transformation in 2021, and as we enter 2022, we will continue to scale and optimize a full suite of omni-channel services designed to delight our customers. We believe that with the significant investments we have made in the business and the talented team we have assembled, the company is well positioned to achieve long-term growth.”