08.03.23
Consolidated net sales for Sally Beauty Holdings, Inc. for Q3 2023 were $931 million, a decrease of 3.2% compared to the prior year, for the third quarter ended June 30, 2023, the company reported.
Consolidated comparable sales increased 0.6%, while global e-commerce sales increased 3% to $83 million, representing 8.9% of net sales.
“We are pleased to report another solid quarter with net sales of $931 million, adjusted gross margin of 51%, adjusted EBITDA of $119 million and free cash flow of $32 million,” said said Denise Paulonis, president and chief executive officer. “Three quarters into our fiscal year, we are on track with our operating initiatives and the financial guidance we originally laid out for fiscal 2023. Our teams remain focused on fueling growth through our core strategic initiatives – enhancing customer centricity, driving innovation and increasing operating efficiency. Of note, we continue to pilot a number of growth driving initiatives, including Cosmo Prof Direct, Studio by Sally and Happy Beauty Co. When combined with our focus on innovation and owned brands, we are confident that our strategies will continue to build upon our modern and dynamic retail platform, taking us well into the future. Importantly, we remain steadfast in our commitment to enhance value for our customers and shareholders over the long-term.”
The company was operating 352 fewer stores at the end of the quarter compared to the prior year. Foreign currency translation had a favorable impact of 20 basis points on consolidated net sales for the quarter. At constant currency, global e-commerce sales increased 3% compared to the prior year to $83 million or 8.9% of consolidated net sales for the quarter.
Consolidated comparable sales increased 0.6%, driven primarily by Sally Beauty’s strong sales recapture rates from the company’s recent store optimization efforts, mostly offset by the continuation of stylist demand trends seen over the last several quarters at Beauty Systems Group.