Sally Beauty Supply 2013 Annual Report Download - page 71

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increase of approximately $10.3 million, or 0.3%. For the fiscal year ended September 30, 2012,
incremental sales from businesses acquired in the preceding 12 months contributed approximately
$83.1 million, or 2.5%, less to the annual sales increase than for the fiscal year ended September 30, 2011.
Other sales channels (including sales through our BSG franchise-based businesses and from stores that
have been open for less than 14 months), in the aggregate, experienced a minor decline in sales compared
to the fiscal year ended September 30, 2011. Consolidated net sales for the fiscal year ended September 30,
2012, are inclusive of an approximately $26.3 million negative impact from changes in foreign currency
exchange rates.
Sally Beauty Supply. Net sales for Sally Beauty Supply increased by $186.1 million, or 9.2%, for the fiscal
year ended September 30, 2012, compared to the fiscal year ended September 30, 2011, primarily as a
result of increases in unit volume, including increases in sales at existing stores and the incremental sales
from 151 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 at least 14 months contributed an
increase of approximately $160.5 million, or 8.0%, and our non-store sales channels (which, after
December 2010, include the catalog and internet sales of our Sinelco Group subsidiaries) contributed an
increase of approximately $10.3 million, or 0.5%. For the fiscal year ended September 30, 2012,
incremental sales from businesses acquired in the preceding 12 months contributed approximately
$16.0 million, or 0.8%, more to the annual sales increase than for the fiscal year ended September 30, 2011.
Other sales channels (including sales from stores that have been open for less than 14 months) experienced
a minor decline in sales compared to the fiscal year ended September 30, 2011. Net sales for Sally Beauty
Supply for the fiscal year ended September 30, 2012, are inclusive of an approximately $22.6 million
negative impact from changes in foreign currency exchange rates, including the impact of a weaker Euro in
2012.
Beauty Systems Group. Net sales for BSG increased by $68.5 million, or 5.4%, for the fiscal year ended
September 30, 2012, compared to the fiscal year ended September 30, 2011, primarily as a result of
increases in unit volume, including increases in sales at existing stores and the incremental sales from 36
company-operated stores opened or acquired during the last twelve months. Company-operated stores that
have been open for at least 14 months contributed an increase of approximately $125.9 million, or 10.0%,
and sales through our distributor sales consultants contributed an increase of approximately $41.3 million,
or 3.3%. For the fiscal year ended September 30, 2012, incremental sales from businesses acquired in the
preceding 12 months contributed approximately $99.1 million, or 7.9%, less to the annual sales increase
than for to the fiscal year ended September 30, 2011. Other sales channels (including sales through our
Armstrong McCall franchise-based business and sales from stores that have been open for less than
14 months), in the aggregate, experienced a minor increase in sales compared to the fiscal year ended
September 30, 2011. Net sales for BSG for the fiscal year ended September 30, 2012, are inclusive of an
approximately $3.7 million negative impact from changes in foreign currency exchange rates.
Gross Profit
Consolidated gross profit increased by $148.7 million, or 9.3%, for the fiscal year ended September 30,
2012, compared to the fiscal year ended September 30, 2011, principally due to higher sales volume and
improved gross profit margins in both business segments as more fully described below. Consolidated gross
profit as a percentage of net sales, or consolidated gross profit margin, increased to 49.5% for the fiscal
year ended September 30, 2012, compared to 48.8% for the fiscal year ended September 30, 2011.
Sally Beauty Supply. Sally Beauty Supply’s gross profit increased by $111.6 million, or 10.3%, for the fiscal
year ended September 30, 2012, compared to the fiscal year ended September 30, 2011, principally as a
result of higher sales volume and improved gross profit margins. Sally Beauty Supply’s gross profit as a
percentage of net sales increased to 54.6% for the fiscal year ended September 30, 2012, compared to
54.0% for the fiscal year ended September 30, 2011. This increase was the result of a shift in product and
54