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Sally Beauty Profits Jump 62.7% in First Quarter

Earnings for Sally Beauty reach $26.1M in 1st qtr.

Sally Beauty Holdings’ third-quarter net income increased to $31.5 million.

First-quarter profit at Sally Beauty Holdings Inc. vaulted 62.7 percent to $26.1 million, or 14 cents a diluted share, from $16.1 million, or 9 cents, in the same period a year ago.

After adjusting for $1.4 million in after-tax, noncash interest income from marked-to-market changes in the fair value of the company’s interest rate swaps, EPS came in at 13 cents, the firm noted. On average, Wall Street analysts had expected EPS of 14 cents a share for the fiscal quarter ended Dec. 31, according to Yahoo Finance.

Quarterly revenues gained 9.2 percent to $704.9 million, from $645.6 million a year ago, and saw a positive impact from foreign currency exchange of $9.1 million. Overall same-store sales were up 3.8 percent.

“We had another strong quarter, providing a good start to the new fiscal year,” Gary Winterhalter, the firm’s president and chief executive officer, told analysts during a conference call Thursday. “We believe we are well positioned to execute on our strategy for long-term growth.”

The company’s Sally Beauty Supply division earned $71.1 million during the quarter, up 8.9 percent from $65.3 million, on sales of $438.3 million, a 6.8 percent increase from $410.5 million in the year-ago period. Same-store sales at the division, which counted 2,938 stores at the end of the quarter, were up 3.7 percent.

Meanwhile, earnings at the firm’s Beauty Systems Group unit came in at $25.6 million, a 26.5 percent jump from $20.2 million, on quarterly sales of $266.5 million, a 13.4 percent improvement from $235 million in the year-ago quarter. BSG had 997 stores at the end of the quarter and recorded same-store sales growth of 4.3 percent.

Sally Beauty Holdings’ total store count at the end of the quarter was 3,935 units, an increase of 166 stores, or growth of 4.4 percent over the same period a year ago.