Sally Beauty sales down on currency translations
Over three quarters of the company’s sales are made in the US and Canada, but for the full year 2009 negative currency effects dragged sales down by 3.2 percent compared to last year’s figures.
However, same store sales increases and extra store fronts helped offset some of this decline to leave total sales for the year standing at $2.6bn, a 0.4 percent drop from last year.
Professionals and salons
The company’s professional provisions business, the Beauty Systems Group, which supplies hair care professionals and salons with brands such as TiGi and Paul Mitchell, suffered from ‘softness’ in the sector.
The franchise and consultants part of the Beauty Systems Group suffered a sales drop of 3.3 percent. Negative currency effects also dragged sales down and in total the division recorded sales of $940.9m for the year, 3.5 percent down on last year.
During the year the Beauty Systems Group made two acquisitions: a Puerto Rico-based distributor of beauty products Belleza Concept; and a Schoeneman Beauty Supply covering seven northeastern states.
Sally Beauty Supply
New store openings were also apparent in the company’s other division, Sally Beauty Supply.
These stores and franchises offer brands such as L’Oreal, Clairol and Wella and during the year the division enjoyed a slight increase in sales, despite the negative currency effects.
In the fourth quarter of 2009 Sally Beauty Supply acquired InterSalon. Headquartered in Santiago, Chile, the acquisition was part of the company’s strategy to increase its presence in South America.
Overall the division’s sales came in at $1.7bn, up 1.4 percent from last year. The company said the UK was a market particularly badly hit by the negative economic climate.
Net earnings up
At $1.243bn, gross profit was slightly higher than last year’s figure which combined with lower interest expenses than in 2008 led to a 27.8 percent increase in net earnings.
Commenting on the results, Sally Beauty CEO Gary Winterhalter said: “Sally Beauty Holdings delivered very good fourth quarter and full year results despite a difficult recessionary environment.”
