Net sales for Q3 for the three months ended June 30 2011, came in at $836.6 million, compared to last year with $743 million, an increase of 12.6 percent.
Likewise, the cost of products sold and distribution expenses also rose in comparison to the same period last year, from $382.1 million, to $426 million, for this third quarter.
However, despite an increase in sales and distribution costs, Sally Beauty’s gross profit for the quarter ended 30 June also rose, from $360.9 million, to $410.5 million, an increase of 13.8 percent.
Same store sales growth
The company’s net sales growth was attributed to the gains in same store sales, which increased 1.3 percent from 5.9 percent in comparison to 2010 third quarter sales growth of 4.6 percent.
Acquisitions as well as the addition of new stores also contributed to the sales increase.
“We are extremely pleased with our strong financial results in the third quarter,” stated Gary Winterhalter, CEO. “Both Sally Beauty and BSG had a great quarter with sales growth of 11 percent and 16 percent, respectively."
Sally Beauty Supply / Beauty Systems Group
Sally Beauty Holdings’ businesses, namely Beauty Systems Group and Sally Beauty Supply, saw sales rise in the third quarter of this year as compared to sales last year.
Sales for Sally Beauty Supply rose to $517.2 million, up 10.6 percent from $467.4 million; Beauty Systems Group saw sales rise from $275.5 million to $319.4 million, which was up 15.9 percent.
Gross margin for Sally Beauty Supply was at the high end at 54.4 percent, which was a 100 basis point improvement from last year, at 53.4 percent in the third quarter of fiscal year 2010.
However, a disappointingly flat gross margin of 40.4 percent was seen by Beauty Systems Group across both years for the third quarter.