Sally Beauty Holdings has appointed Neiman Marcus executive Donald Grimes to chief financial officer and chief operations officer.
Grimes’s title will also include senior vice president. He joins Sally Beauty from his role as CFO and COO of Neiman Marcus.
Chris Brickman, president and chief executive officer, said,“Don is an accomplished executive with significant financial and operational expertise in the retail industry. His broad experience will be an asset to us as we build upon our strategy and prioritize our opportunities for long-term growth.”
The business also reported fourth quarter and full year earnings. For the quarter, net earnings were $52.6 million, down from $56.2 million in the prior-year period. The company’s net sales increased 1.3 percent to $976.4 million from $964.2 million.
For the full year, consolidate gross profit was $483.4 million, up 1.7 percent from $475.3 million in the prior year. Net sales were up 3.1 percent to $3.95 billion, driven by same store sales growth and new stores, the company said. Adjusted earnings per share were $1.72, up 12 percent.
“We achieved solid results with full-year adjusted EPS growth of 12 percent,” said Brickman. “Consolidated same store sales grew almost 3 percent and gross margin expanded 20 basis points despite the unfavorable impact from foreign currency. Cash from operations of $351 million enabled us to invest in the business and return a substantial portion to our shareholders. During the year, we opened 152 net new stores and continued to buy our stock, acquiring 7.8 million shares totaling $207 million.
“Looking ahead to 2017, we are excited about our sales driving initiatives in both businesses,” Brickman continued. “In Sally, our in-store investments are mostly behind us and the Sally team is focused on the next phase of customer conversion and engagement. We believe our [Beauty Systems Group] business will continue to gain channel share and work towards becoming the indisputable partner of choice for stylists and manufacturers. Our 2017 financial goals are straightforward. We expect revenue improvement from consolidated same store sales growth of approximately 3 percent and organic store openings of 2 percent to 3 percent. Gross margin expansion is anticipated to be 30 to 40 basis points and should offset higher [selling general and administrative] expenses resulting from the headwinds in labor and IT investments. We believe the combination of sales growth and gross margin expansion will lead to mid-single digit operating earnings growth.
“Our focus is on delivering these straightforward targets in 2017 and building on that momentum as labor cost inflation and IT spending tapers off in future years. This should allow for SG&A leverage and higher operating earnings growth over time,” Brickman said.