Sally Beauty reports USD 883.1M sales for Q2 FY25 amid economic challenges
The drop included a 110 basis point negative impact from foreign currency translation.
USA – Sally Beauty, an American international speciality retailer and distributor of professional beauty supplies, has announced the financial performance of Q2 fiscal year 2025, reporting consolidated net sales of USD 883.1 million, marking a decrease of 2.8% compared to the prior year.
According to the company, the drop included a 110 basis point negative impact from foreign currency translation.
Global e-commerce sales totalled USD 94 million for the quarter at constant currency, representing 10.7% of overall consolidated net sales.
Consolidated comparable sales declined by 1.3%, largely due to external challenges such as severe weather, a harsh flu season, and broader economic uncertainty, which affected consumer spending at Sally Beauty and reduced stylist appointments at Beauty Systems Group.
However, strong performance in hair colour, digital marketplaces, and brand innovation helped partially offset the downturn.
The company reported a slight decline in gross profit for the second quarter, totalling USD 458.8 million, down 0.9% from the previous year’s USD 463.1 million.
The adjusted EBITDA saw a 5.3% year-over-year increase to USD 104.8 million, compared to the previous year.
The net sales for the beauty supply segment reached USD 500.6 million, reflecting a 2.5% decline compared to the same period last year.
Beauty Systems Group reported quarterly net sales of USD 382.6 million, down 3.2% from the prior year, impacted by foreign currency and a reduced store count.
Denise Paulonis, president and chief executive officer, stated, “We were able to deliver these results amidst a challenging macro backdrop, which impacted our topline performance.”
“The business continues to generate strong cash flow, enabling us to maintain our balanced capital allocation strategy, which prioritizes investing in our strategic initiatives, optimizing our balance sheet and returning value to shareholders.”
For the third quarter, comparable sales are projected to range from flat to a 2% decline year-over-year, while the adjusted operating margin is forecasted between 8.0% and 8.5%.
For the full year, comparable sales are expected to be flat to down 1%, with net sales impacted by foreign exchange and an adjusted operating margin projected between 8.0% and 8.5%.
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