Sally Beauty Holdings Inc. said Thursday that improvements in net and same-store sales helped it boost its third-quarter profits 30.6 percent.
In the three months ended June 30, net income was $41.1 million, or 22 cents a diluted share, 1 cent better than Wall Street’s consensus estimates. In the year-ago quarter, profits came in at $31.5 million, or 17 cents.
Quarterly sales at the Denton, Tex.-based beauty supplies retailer grew 10.3 percent to $743 million from $673.3 million in the prior-year period. Overall comparable-store sales rose 4.6 percent, with a 3.6 percent uptick in comps at Sally Beauty Supply and a 7.4 percent comp increase at the Beauty Systems Group division.
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Gary Winterhalter, president and chief executive officer, told investors during a conference call, “Sally Beauty Holdings had another outstanding quarter with both business segments [experiencing] strong growth.”
Sally Beauty Supply, which ended the quarter with 2,973 stores, saw sales of $467.4 million, while BSG, with its 1,013 stores, generated revenues of $275.5 million, driven by “growth in store traffic,” noted Winterhalter.
“Our business continues to perform in line with historical trends, [which] underscores the consistency of our business model,” he said, adding that, on July 18, the firm marked the opening of its 4,000th door.
Year-to-date profits spiked 41.1 percent to $101.8 million, or 55 cents a share, versus $72.1 million, or 39 cents, on sales of $2.17 billion, up 10.6 percent from $1.96 billion in the nine months of 2009.
“As we head into the fourth quarter, we believe we’ll have a strong finish to fiscal 2010,” Winterhalter remarked.