Sally Beauty reports strong quarter on acquisition and more stores
Net sales for the quarter increased by 12 percent to $0.84bn, while full year sales increased by the same amount to $3.3bn, growth that was positively impacted by an increased store base, business acquisitions and the positive effects of currency translations.
Net earnings for the first quarter increased by 29 percent to $54m, while for the full year they were up 48 percent to $214m. The results were positively impacted by the increase in sales, together with an after-tax payment from a litigation settlement.
Acquisitions and currency exchange contribute to growth
“We are pleased with our 2011 results and anticipated that the drivers of our business will continue to generate strong operation and financial performance in fiscal 2011,” said Gary Winterhalter, president and CEO of Sally Beauty.
Breaking the figures down between the company’s two business divisions – Sally Beauty Supply, which retails to the general public and the Beauty Systems Group, which retails to beauty professionals – strong growth was witnessed across the board during the last quarter.
Sally Beauty Supply reported sales up 10.1 percent during the fourth quarter, to $523.4m, a figure that was positively impacted by foreign currency by $6.4m. This figure was boosted by a 6.4 percent increase in same store sales and new store openings.
Kapperservice acquisitions led to growth in Q4
Similarly, sales for the full year were up 9.7 percent to $2.0bn, with this figure being attributed mainly to the business expansion, which included expansion into Europe, with the acquisition of Netherlands-based business Kapperservice Floral and two related companies in November.
In the Beauty Systems division, sales were up 15.1 percent in the fourth quarter to $313.8m, a figure that was positively impacted by foreign currency exchange at 0.8 percent and from acquisition-related revenue at 9.7 percent.
For the full year, net sales were up 16.2 percent to $1.1bn, again positively impacted by favorable currency, but chiefly attributed to growth from acquisitions.