Denton-based Sally Beauty Holdings boasted sales growth in the past quarter for the first time in seven quarters, company officials announced in the third-quarter earnings call with investors Wednesday.
Consolidated same-store sales increased 0.1%, while Beauty Systems Group — the arm of the company that sells to beauty professionals — increased same-store sales by 1.4%.
“I am pleased with our results for the third quarter, and we are tracking nicely against a significant change agenda and the goals for the year,” Chris Brickman, the president and CEO, said in the call. “The team delivered positive same-store sales from BSG for the first time in seven quarters, despite some lingering vendor supply chain issues, which resulted in positive same-store sales for the consolidated enterprise.”
The market responded to the upswing and other new initiatives at the company positively: Sally’s stock went up $1.39 a share Wednesday, nearly recovering from a hit at the end of June when Amazon announced its own professional beauty store.
The day of the announcement, Sally stock opened at $14.79 a share and closed at $12.30 a share. At the close of the market Wednesday, the stock sat at $13.74.
Earlier this month, company officials said they were not worried about the stock market’s confidence because Amazon wouldn’t be able to compete with Sally in terms of offerings or pricing.
Company representatives did not respond to requests for comment after Wednesday’s call.
In the earnings report, the company also announced it has executed a lease for a 500,000-square-foot distribution center in North Texas. It is unclear if the facility is in Denton or Denton County.
In addition to positive sales growth, Brickman also reported the company paid off $100 million in debt, launched its new Sally Beauty rewards app — which was downloaded more than 255,000 times — and launched new and exclusive brands of hair color and care products to Sally customers.