As it continues its turnaround plan, Sally Beauty Holdings Inc. posted a slight dip in sales for the fiscal third quarter.
The beauty supply retailer posted $996.3 million in sales for the quarter, a 0.2 percent decline from the prior-year period. Net earnings dropped more significantly, 12.5 percent, to $58.2 million. Earnings per share were 48 cents.
“Despite the short-term challenges we are facing, we continue to make progress on the core elements of a transformation plan that we are confident will put Sally Beauty Holdings on the right track long-term,” said Chris Brickman, president and chief executive officer. “During the third quarter, core traffic challenges were exacerbated by material issues from two of our top manufacturers for Beauty Systems Group and the impact of significant, but necessary, internal changes in how we operate.”
Sally is working with FTI Consulting on a restructuring plan meant to align operations and reduce its cost base, as well as refocus the company on hair color and hair care.
"This effort will take multiple quarters, but we have already made progress, and we are fully committed to transforming and investing in our business, controlling our indebtedness, and returning capital to shareholders," Brickman said.
The plan includes closing 1 to 2 percent of all stores in the U.S. and abroad.
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