Sally Beauty down in Q1; names new CEO

Sally Beauty Holdings reported decreased profits for the first quarter, but the company’s just-named CEO says new marketing programs will be paying off soon.



Sally Beauty reported a profit of $54.9 million, or 35 cents a share, in its first fiscal quarter ended Dec. 31, compared with a profit of $58 million, or 35 cents a share last year. Analysts surveyed by Thomson Reuters forecast a profit of 38 cents a share and sales increase of 3.7 percent to $975.1 million.



In a transition announced last year, Chris Brickman, president and chief operating officer, succeeded Gary Winterhalter as chief executive officer on Feb. 1.



Winterhalter has been Sally Beauty CEO since 2006 when the company was spun off from the Alberto-Culver Co. During Winterhalter’s tenure, the company’s annual sales increased to $3.8 billion from $2.4 billion and the stock price quadrupled.



“The board and I are very pleased to have an outstanding candidate such as Chris step into the CEO role,” said Robert McMaster, lead independent director of the company’s board. “Chris is a passionate leader with an exceptional track record of success throughout his career. We are confident he will add tremendous value and drive continued growth and development for the organization. The board is very grateful to Gary Winterhalter for his leadership as CEO and his commitment to the company’s success. We are pleased that he will continue to play a key role with the company.”



The company said it is making investments on programs it expects will boost sales later including, marketing, a new nail studio wall, store remodels and the acquisition of new brands and territories for its wholesale business that supplies salons.



Through the Sally Beauty Supply and Beauty Systems Group businesses, the company sells and distributes through 4,800 stores, including approximately 200 franchised units, throughout the United States, the United Kingdom, Belgium, Chile, Peru, France, the Netherlands, Canada, Puerto Rico, Mexico, Ireland, Spain and Germany.