Sally Beauty Holdings navigated a challenging fourth quarter, with a 4.3% decline in net sales totaling $921 million, capping off a year where annual sales dipped 2.3%. The Denton, Texas-based beauty retailer remains optimistic, citing a recovery trajectory and the successful implementation of its store optimization plan.
Annual sales reached $3.73 billion, driven by the store optimization plan, contributing to a 1.4% increase in comparable sales for the 12 months ending September 30. However, fourth-quarter comparables saw a slight dip of 1.6%.
Despite challenges, net earnings remained steady at $184.6 million for the fiscal year. Denise Paulonis, President and CEO, expressed satisfaction with the results, emphasizing the company’s ability to navigate a dynamic market.
In addition to financial updates, Sally Beauty revealed strategic acquisitions. In September, Beauty Systems Group acquired select assets from Goldwell of New York, including five stores and full-service sales and distribution rights for key brands like Goldwell and Deva Curl in upstate New York. The acquisition, which includes 28 CosmoProf stores and distribution rights for Amika hair care, is expected to provide an incremental sales benefit of approximately 1% to the Beauty Systems Group segment in fiscal 2024.
Sally Beauty remains committed to advancing consumer-centric strategies, introducing new concepts, and innovating product offerings for both Sally and BSG customers.
This proactive approach positions Sally Beauty for continued growth and adaptability in a dynamic market landscape.