Sally Beauty Holdings, Inc. (NYSE: SBH) (the “Company”) today announced financial results for the fiscal 2014 first quarter. The Company will hold a conference call today at 10:00 a.m. (Central) to discuss these results and its business.
“In the fiscal 2014 first quarter, consolidated net sales and same store sales grew 3.9% and 2.2%, respectively,” stated Gary Winterhalter, Chairman, President and Chief Executive Officer. “I am pleased with same store sales growth in our Sally business of 0.9% and the sequential improvement when compared to fiscal 2013 third and fourth quarters which were down 0.8% and down 1.5%, respectively. The improvement was primarily due to an increase in traffic which gives me confidence that the return to our targeted marketing campaign and the introduction of new brands in our Sally U.S. business will continue to improve traffic results throughout the fiscal year.”
FISCAL 2014 FIRST QUARTER FINANCIAL HIGHLIGHTS
For the fiscal 2014 first quarter, consolidated net sales were $940.5 million, an increase of 3.9% from the fiscal 2013 first quarter. Fiscal 2014 first quarter sales increase is attributed to same store sales growth and the addition of new stores. The impact from changes in foreign currency exchange rates in the fiscal 2014 first quarter was not material. Consolidated same store sales growth in the fiscal 2014 first quarter was 2.2%.
Consolidated gross profit for the fiscal 2014 first quarter was $460.5 million, an increase of 3.6% over gross profit of $444.4 million for the fiscal 2013 first quarter. Gross profit as a percentage of sales was 49.0%, a 10 basis point decline from the fiscal 2013 first quarter.
Selling, General and Administrative Expenses:
For the fiscal 2014 first quarter, consolidated selling, general and administrative (SG&A) expenses, including unallocated corporate expenses and share-based compensation, were $319.5 million, or 34.0% of sales, a 20 basis point increase from the fiscal 2013 first quarter metric of 33.8% of sales and total SG&A expenses of $305.7 million. Fiscal 2014 first quarter SG&A expenses increased $13.8 million primarily due to expenses associated with the opening of new stores such as rent, occupancy and payroll expenses.
Note: SG&A expenses include unallocated corporate expenses, as detailed in the Company’s segment information on schedule B.