THE WHAT? Sally Beauty has reported a Q2 net sales decrease of 1.6 percent YOY to US$911 million.
THE DETAILS Global e-commerce sales were US$81 million or 8.9% of consolidated net sales for the quarter.
Consolidated gross profit for the second quarter was US$465.3 million compared to US$467.2 million in the prior year, a decrease of 0.4 percent.
Net sales for the Sally Beauty Supply were US$525.8 million in the quarter, a decrease of 3.1 percent compared to the prior year, while the Beauty Systems Group saw net sales of US$385.6 million, a YOY 0.5 percent increase.
THE WHY? The company stated it was operating 142 fewer stores at the end of the quarter compared to the prior year, while foreign currency translation had an unfavorable impact of 50 basis points on consolidated net sales for the quarter.
Denise Paulonis, President and Chief Executive Officer, “After a strong start to the year, we experienced greater than expected pressure on the top line as supply chain and inflationary challenges intensified in the back half of the quarter and we lapped the stimulus benefits of 2021.
“While these factors impacted net sales, we delivered healthy gross margins above 51 percent and adjusted earnings per share of US$0.47. As we navigate the ongoing macro environment, we remain confident in the underlying strength of our business and the resiliency of our core color and care customers.”