Sally Beauty Supply 2011 Annual Report Download - page 68

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due to tax benefits resulting from certain intercompany transactions that resulted in the release of
valuation allowances during the fiscal year 2011, compared to the fiscal year 2010.
Net Earnings
As a result of the foregoing, consolidated net earnings increased by $69.9 million, or 48.6%, to
$213.7 million for the fiscal year ended September 30, 2011, compared to $143.8 million for the fiscal year
ended September 30, 2010. Net earnings, as a percentage of net sales, were 6.5% for the fiscal year ended
September 30, 2011, compared to 4.9% for the fiscal year ended September 30, 2010.
The Fiscal Year Ended September 30, 2010 compared to the Fiscal Year Ended September 30, 2009
The table below presents net sales, gross profit and gross profit margin data for each reportable segment
(dollars in thousands).
Fiscal Year Ended September 30,
2010 2009 Increase
Net sales:
Sally Beauty Supply ..................... $1,834,631 $1,695,652 $ 138,979 8.2%
BSG................................ 1,081,459 940,948 140,511 14.9%
Consolidated net sales ................... $2,916,090 $2,636,600 $ 279,490 10.6%
Gross profit:
Sally Beauty Supply ..................... $ 976,377 $ 878,738 $ 97,639 11.1%
BSG................................ 427,997 364,579 63,418 17.4%
Consolidated gross profit ................. $1,404,374 $1,243,317 $ 161,057 13.0%
Gross profit margin:
Sally Beauty Supply ..................... 53.2% 51.8% 1.4%
BSG................................ 39.6% 38.7% 0.9%
Consolidated gross profit margin ........... 48.2% 47.2% 1.0%
Net Sales
Consolidated net sales increased by $279.5 million, or 10.6%, for the fiscal year ended September 30, 2010,
compared to the fiscal year ended September 30, 2009. Company-operated stores that have been open for
at least 14 months contributed an increase of approximately $179.1 million, or 6.8%, and sales from
businesses acquired in the preceding 12 months contributed approximately $94.1 million, or 3.6%, more to
consolidated net sales for the fiscal year ended September 30, 2010, compared to the fiscal year ended
September 30, 2009. Other sales channels (including sales through our BSG distributor sales consultants
and our BSG franchise-based businesses and from stores that have been open for less than 14 months), in
the aggregate, contributed an increase of $6.3 million, or 0.2%, compared to the fiscal year ended
September 30, 2009. Consolidated net sales for the fiscal year ended September 30, 2010, are inclusive of
approximately $17.2 million in positive impact from changes in foreign currency exchange rates.
Sally Beauty Supply. Net sales for Sally Beauty Supply increased by $139.0 million, or 8.2%, for the fiscal
year ended September 30, 2010, compared to the fiscal year ended September 30, 2009. In the Sally Beauty
Supply segment, company-operated stores that have been open for at least 14 months contributed an
increase of approximately $127.3 million, or 7.5%, and sales from businesses acquired in the preceding
12 months contributed approximately $13.2 million, or 0.8%, more to net sales for the fiscal year ended
September 30, 2010, compared to the fiscal year ended September 30, 2009. Other sales channels
(including sales from stores that have been open for less than 14 months and non-store sales), in the
aggregate, experienced a minor decline in sales compared to the fiscal year ended September 30, 2009. Net
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