Sally Beauty reports strong increase in sales for Q1
Net sales for the quarter rose by 9.0 percent to $864.8m, a rise that was largely attributed to same store growth as well as the addition of new stores and acquisitions. Consolidated same store growth for the period was 7.1 percent.
The company also reported net sales down 26.4 percent to $30.1m, but an increase of 36.0 percent in adjusted net earnings of $55.7m, while adjusted EBITDA was up 19.7 percent to $136.9m.
The figures beat analysts’ expectations, who on average had forecast that the company would make $852m in sales during its first quarter.
CEO states company is positioned to achieve full year targets
“We achieved SG&A leverage in the quarter which contributed to our 20 percent EBITDA growth. I believe Sally Beauty Holdings is well positioned to execute on our strategic objectives and deliver another year of strong financial performance," stated Gary Winterhalter, president and CEO.
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 11.5 percent during the first quarter, to $481.0m, while net sales for the Beauty Systems Group grew by 5.1 percent to $328.5m.
Kapperservice acquisitions led to growth in Q4
For the full year 2011 sales 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.
