Sally Beauty Supply 2013 Annual Report Download - page 66

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Net Sales
Consolidated Net Sales
Consolidated net sales increased by $98.6 million, or 2.8%, for the fiscal year ended September 30, 2013,
compared to the fiscal year ended September 30, 2012, primarily as a result of increases in unit volume,
including increases in sales at existing stores and the incremental sales from the 172 company-operated
stores opened or acquired during the last twelve months. Company-operated Sally Beauty Supply and BSG
stores that have been open for 14 months or longer contributed an increase in consolidated net sales of
approximately $105.7 million, or 3.0%, and certain other sales channels (including sales through our BSG
franchise-based businesses and distributor sales consultants, and sales from our Sally Beauty Supply
non-store sales channels), in the aggregate, contributed an increase in consolidated sales of approximately
$37.6 million, or 1.1%, compared to fiscal year ended September 30, 2012. On the other hand, incremental
sales from businesses acquired in the preceding 12 months were $28.9 million, or 0.8%, lower for the fiscal
year ended September 30, 2013, compared to the fiscal year ended September 30, 2012, mainly due to
fewer acquisitions. Incremental sales from stores that have been open for less than 14 months were
$15.8 million, or 0.5%, lower for the fiscal year ended September 30, 2013, compared to the fiscal year
ended September 30, 2012, in part due to fewer store openings and/or the timing of store openings. For the
fiscal year ended September 30, 2013, changes in foreign currency exchange rates did not have a material
impact on our consolidated net sales.
For the fiscal year ended September 30, 2013, consolidated net sales reflect lower or negative same store
sales growth rates, particularly in the Sally Beauty Supply segment’s U.S. business, compared to very strong
performance for the same stores in the fiscal year ended September 30, 2012. The consolidated same store
sales growth rates for the fiscal year ended September 30, 2013 were adversely impacted by lower
non-Beauty Club Card traffic in the U.S., as well as a difficult comparison against strong growth in certain
Sally Beauty Supply product categories in the fiscal year ended September 30, 2012.
Sally Beauty Supply. Net sales for Sally Beauty Supply increased by $31.6 million, or 1.4%, for the fiscal
year ended September 30, 2013, compared to the fiscal year ended September 30, 2012, primarily as a
result of increases in unit volume, including the incremental sales from 119 company-operated stores
opened or acquired during the last twelve months. In the Sally Beauty Supply segment, company-operated
stores that have been open for 14 months or longer contributed an increase of approximately $47.9 million,
or 2.2%, and certain other sales channels (including sales from our non-store sales channels, which include
sales through independent distributors in Europe (previously reported in sales from businesses acquired)
and sales at trade shows), in the aggregate, contributed an increase of approximately $16.0 million, or
0.7%. Other the other hand, incremental sales from businesses acquired in the preceding 12 months were
$22.5 million, or 1.0%, lower for the fiscal year ended September 30, 2013, compared to the fiscal year
ended September 30, 2012, mainly due to fewer acquisitions. Incremental sales from stores that have been
open for less than 14 months were $9.9 million, or 0.5%, lower for the fiscal year ended September 30,
2013, compared to the fiscal year ended September 30, 2012, in part due to fewer store openings and/or the
timing of store openings. For the fiscal year ended September 30, 2013, changes in foreign currency
exchange rates did not have a material impact on our Sally Beauty Supply segment net sales.
For the fiscal year ended September 30, 2013, the Sally Beauty Supply segment’s net sales reflect a negative
0.6% same store sales growth rate due to soft traffic in the U.S., compared to strong performance for the
same stores in the fiscal year ended September 30, 2012. This decrease was partially offset by strong sales
growth in the Sally Beauty Supply segment’s international businesses. The Sally Beauty Supply segment’s
same store sales growth rate for the fiscal year ended September 30, 2013 was adversely impacted by lower
non-Beauty Club Card traffic in the U.S., as well as a difficult comparison against strong growth in certain
Sally Beauty Supply product categories (such as nail care and certain hair product lines) in fiscal year
ended September 30, 2012, as discussed previously.
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