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Published
May 5, 2017
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Sally Beauty Holdings announces Q2 sales drop amid restructure

Published
May 5, 2017

Sally Beauty Holdings Inc. has announced its second quarter results showing a decline in sales and earnings. Amidst the restructuring, Sally Beauty US and Canada president Sharon Leite has resigned.


The Texas-based company has been in transition this year, forecasting trouble and a need for restructuring dating back to previous quarters. The official restructuring began in February of this year.

Sales for Sally Beauty Supply during Q2 fell 2.9% over last year to $576 million. Existing stores saw a 2% decline in sales that was offset by 2% growth in sales coming from new stores. Inventory is up 1.8% at $917.3 million over last year Q2.

Chris Brickman, Sally Beauty’s president and CEO hoped to mitigate the weak results, pointing to several initiatives Sally Beauty is trying out for better sales in the future. Specifically, according to Brickman the initiatives include "zone and tactical pricing, as well as the introduction of new brands to BSG and Sally." 

Brickman also cited the launch of a new Sally Beauty customer loyalty program. He noted that so far it has been met with positive consumer feedback.

"“Our financial results in the second quarter reflect our teams’ sharp focus on gross margin management and operating expense discipline," he continued.

Brickman has stepped in as the interim president for Sally Beauty US and Canada after industry veteran Sharon Leite resigned from the position, effective immediately.



 

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