Sally Beauty posts 10% sales growth in fiscal 2021
Denton, Texas-based professional hair and beauty supply company Sally Beauty Holdings, Inc. announced net sales of $3.87 billion in its fiscal year 2021, which ended September 30, an increase of 10.3% from $3.51 billion in the previous year.
Annual same store sales at the company rose 10.2% year over year, while e-commerce sales totaled $281 million, representing 7.2% of the group’s revenues in fiscal 2021.
Sally Beauty’s income for the year was $239.9 million, or $2.10 per diluted share, compared to $113.2 million, or $0.99 per diluted share, in 2020.
The company’s fourth quarter saw the group achieve consolidated net sales of $990.3 million, up 3.4% from $957.8 million in the same period in the previous year. Same store sales increased 2.1% year over year, with the company operating 127 fewer stores in Q4 2021 than in Q4 2020. Quarterly e-commerce sales were $71 million, or 7.1% of Sally Beauty’s total revenues for the period.
The company’s Sally Beauty Supply segment posted a year-over-year increase of 1.5% in its quarterly net sales, which totaled $585.4 million, despite operating 104 fewer stores than in the prior-year period. The segment operates 3,549 stores as of September 30.
Sally Beauty Supply’s e-commerce sales totaled $29 million, representing 5.0% of its revenues. Same store sales rose 2.3% globally and 1.9% in the U.S. and Canada, which accounted for 79% of the segment’s overall revenue in the quarter.
Over in the company’s Beauty Systems Group segment, net sales were $404.9 million, up 6.2% year over, while same store sales increased 1.7%. E-commerce sales totaled $42 million, or 10.3% of the segment’s revenue. The segment operated 1,362 locations in Q4 2021, down 23 stores compared to the prior-year period.
Full-company net earnings were $68.1 million, or $0.59 per diluted share, in the fourth quarter, compared to $70.2 million, or $0.62 per diluted share, in the prior-year period.
“We are pleased to conclude the year with strong fourth quarter performance,” said Sally Beauty’s recently appointed president and CEO, Denise Paulonis, in a release. “In fiscal 2021, we successfully executed on our stated priorities to substantially complete the remaining elements of our transformation and leverage our new capabilities and tools in service of our mission to recruit and retain color customers.”
“We rebounded strongly from last year’s pandemic challenges, delivering net sales growth of 10.3% while generating strong profitability and cash flow and reducing our debt levels by over $400 million in fiscal 2021,” concluded the executive, who became the company’s CEO on October 1.
Looking forward, Sally Beauty expects its annual net sales to increase between 3% and 4% in fiscal 2022. In line with its efforts to optimize its brick-and-mortar portfolio, the company intends to decrease its store count by approximately 1% to 2% over the course of the year.
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