![]() ![]() As big salons struggled during the pandemic, a growing number of stylists pivoted to running independent businesses in rented salon chairs or out of homes - and turned to Sally to buy supplies. For instance, he said, e-commerce took off as more shoppers got used to curbside pickup. Historically, textured and natural hair merchandise have been more plentiful at specialty beauty stores, such as Sally.Īs the pandemic struck in spring 2020, some of Sally's primary sales drivers - stores and salons -temporarily shuttered.īrickman said his company leaned into growth opportunities that the pandemic created or intensified. Many of them have stepped up assortments of multicultural hair products over the past year, following George Floyd's murder and pledges to better reflect the diversity of customers on shelves. Yet the company will have to prove it can fend off competitive threats, from online retailers like Amazon and newer rivals like Madison Reed to mass retailers, including CVS Health, Walgreens, Target and Walmart. In the quarters ahead, Sally Beauty will face easy comparisons as it laps quarters when the hair industry was largely shut down. It drives about 7% of total sales for prestige beauty. However, for most beauty players, she said hair is just a tiny category. "Hair is the only category that was like 'Pandemic, what pandemic?'" "Hair is on fire," said Larissa Jensen, beauty industry advisor for NPD. They have continued to outpace sales in the total prestige beauty industry, which were up 11% in the first quarter compared with a year earlier but down 5% from the first quarter of 2019. Sales of hair-care products have remained strong this year - up 48% in the first quarter from a year earlier and up 70% from the first quarter of 2019, which was prior to the pandemic. It does not include mass retailers or specialty shops that cater to professionals, such as Sally Beauty. The research firm tracks sales at prestige beauty retailers, such as department stores and specialty stores like Sephora and Ulta Beauty. That's a big difference from the rest of the beauty industry, which saw sales drop 19% in that period. Sales of hair products grew 7% in 2020 from the year prior, according to The NPD Group. As lipstick and other makeup sales plummeted, shoppers channeled money toward self-care items, such as hair masks, and supplies to color hair at home. Hair has been one of the few bright spots in the beauty industry during the pandemic. Same-store sales rose by 6.5% versus the year-earlier period, as shoppers spent stimulus checks, salons increased capacity and stylists stocked up on products for returning customers. ![]() In the second quarter, the retailer showed strength. She rated it neutral, but doubled its price target from $13 to $26 after its fiscal second-quarter earnings report. Weiser said she wants to see the company perform consistently. But since January, its shares are up nearly 64% to $21.37 as of Thursday's close, giving it a market cap is $2.41 billion. ![]() Sally Beauty's stock hit an all-time high of $35.27 in 2015 but has been largely trending downward for the past five years, bottoming at $8.28 in October. Same-store sales growth, a key metric the retailer uses to compare stores open for 14 months or longer, has risen and fallen instead of showing steady upward momentum - and that has spooked some investors. Yet over the past several years, it has faced challenges familiar to many brick-and-mortar retailers: Falling foot traffic and a struggle to adapt to online shopping, said Linda Bolton Weiser, a senior research analyst who tracks health and beauty companies for D.A. Altogether, the Denton, Texas-based company has more than 5,000 stores in 12 countries. ![]() Its core business is professional hair color, along with related accessories like capes, clippers and deep conditioner. It has two sides of the business: Sally Beauty Supply, a chain of stores that draw customers and independent stylists, and Beauty Systems Group, which caters to salon professionals. Sally Beauty has long been known for selling hair color, styling tools and other beauty products. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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