Sally Beauty reports steady Q1 results, to close distribution facilities
Sally Beauty Holdings, Inc. announced amongst steady first quarter results on Tuesday, that it is closing several of its distribution facilities.
The US beauty supplies specialist will close distribution facilities in Denton, Texas, and Anchorage, Alaska, by the end of the second quarter and will close its distribution center in Lincoln, Nebraska, by the end of the third.
It’s currently searching for a 500,000-square-foot location within Texas for construction of a new automated and concentrated distribution center which will service Sally Beauty Supply stores and e-commerce sales, as well as Beauty Systems Group stores, full service sales and e-commerce sales.
The changes are part of the company’s restructuration plan and debt reduction strategy, which will further include launching updated e-commerce and mobile commerce capabilities for Beauty Systems Group, expanding distribution rights for its existing and new brands, as well as building awareness of new product launches across both business segments among other projects slated for the remainder of fiscal 2019.
The company saw consolidated same store sales increase 0.3 percent in the first quarter, but overall net sales were still down 0.5 percent at $989.5 million, compared to last year.
Quarterly earnings per share of $0.57 were higher than expected, especially when compared to earnings of $0.44 per share seen a year ago.
In a release, Chris Brickman, president and chief executive officer, noted that the company was making steady progress especially in North America.
"Our North American retail business, within Sally Beauty Supply, has been leading the charge with respect to our refocus on color and care, our pricing and promotional changes, our new loyalty program and other elements of our owned brand, new product and store execution change agenda. As a result, that business had improved holiday performance on both the top and bottom line," he explained.
He also mentioned the efforts of the company's in-stock position on key brands and new product launches.
"We are making steady progress against our transformation plan and remain on track with our plans for the remainder of the fiscal year," he concluded.
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