In the beauty industry, Sally Beauty Holdings (“SBH”) stands out as a global powerhouse, generating annual sales of $3.9 billion, with a presence in 5,000 stores in numerous countries, including the United States, Mexico, the United Kingdom and Germany.
Since 1964, Sally Beauty Holdings has been a trusted distributor to its diverse customer base of retail consumers and salon professionals. Its stores offer a full range of up to 8,000 products, specializing in color, hair care, skin and nails through its private labels.
Accurate had the opportunity to speak with Melissa Robinette, Human Resources Operations Manager at SBH, to discuss their background screening process and the impact of partnering with Accurate Background.
Elevating the Hiring Process
When Melissa joined SBH, she inherited the challenge of starting a full-stack background screening implementation project from scratch. Prior to working with Accurate, the company had limited background screening procedures, primarily for executive recruiting and the finance team.
Accurate Background’s flexible contract structure, commitment to exceptional client service, and ability to customize services met SBH’s unique needs, leading them to select Accurate as their trusted partner in 2019.
“The automated background screening process saved us time and resources while ensuring our hiring standards were compliant and up to par. Implementing Accurate allowed our team to focus on strategic aspects rather than routine administrative tasks,” says Melissa Robinette.
Using Accel for background checks in the US and ACE for Canada, integrating with Oracle and Equifax platforms has enabled Sally Beauty Holdings to streamline their background check processes and ensure a comprehensive solution for administrators. Currently, Sally Beauty Holdings benefits from accurate criminal background checks, drug testing (instant oral and urine tests), and employment verifications.
In 2021, Sally Beauty Holdings completed over 75,000 background checks, with an average reversal time of 0.90 days. With Accurate’s simple and streamlined solutions, 94% of SBH candidates were also able to start their background check process in one day or less, significantly reducing the average time to hire.
Accurate’s commitment to excellence in customer service is a standout feature of SBH. “Having a dedicated account manager to turn to for solutions instead of a generic support email is extremely helpful. We also really like being able to use the 24/7 chat customer service to get basic answers quickly and easily,” said Robinette.
Creating a Better Tomorrow
As Sally Beauty Holdings prepares to enter 2024, the company is poised for continued growth and impact. Committed to reducing employee turnover, SBH will leverage Accurate’s technology to produce comprehensive reporting and analytics. This strategic approach aligns with Sally Beauty Holding’s desire to deliver an exceptional candidate and associate experience through technology.
In particular, Sally Beauty Holdings is setting laudable goals for the future, focusing on diversity, inclusion and belonging, as well as sustainability and the environment.
“Sustainability initiatives, including reducing environmental impact through packaging and supply chain efficiency, are a major focus for the future. This includes initiatives to minimize packaging materials, use more recycled materials in packaging, and condense and reduce the impact of shipping our products.”
Sally Beauty Holdings continually reaches new heights and Accurate is proud to be with SBH every step of the way. For more information on Sally Beauty Holdings and Accurate.
Sally Beauty Hit by Q2 Softness in its Consumer Business
Net income was $29.2 million, or 27 cents per diluted share, compared with $40.9 million, or 37 cents per thinned share, in the year-ago quarter. Adjusted for one-time events, net income was $37.8 million, or 35 cents per diluted share, associated with $44.6 million, or 41 cents per diluted share, in the year-ago period, the company said.
A consensus estimate from MarketBeat analysts called for adjusted earnings per diluted share of 39 cents and revenue of $910.72.
Consolidated comparable sales decreased 1.5%, primarily reflecting weak traffic and consumer purchasing trends at Sally Beauty Supply driven by the inflationary environment, the company said, partially offset by distribution expansion, product innovation and improving salon demand trends at Beauty Systems Group.
Consolidated net sales decreased 1.1% in the quarter year-over-year to $908.4 million. Foreign currency translation had a promising impact of 50 basis points on consolidated net sales for the period. On a constant currency basis, Sally Beauty Holdings reported global e-commerce sales of $90 million, or 9.9% of consolidated net sales for the period.
In the Sally Beauty Supply segment, net sales were $513.2 million in the quarter, a decrease of 3.2% year-over-year. Foreign currency translation had a satisfactory impact of 90 basis points on reported sales.
On a constant currency basis, e-commerce segment sales were $34 million, or 6.6% of segment sales for the period. Sally Beauty Supply’s comparable sales declined 4% in the quarter from a year earlier, primarily reflecting weak traffic and customer purchasing trends driven by the inflationary environment, the company said.
Conclusion
“Our second quarter performance reflected the benefits of expanded distribution, product innovation and strengthening salon demand trends in our Beauty Systems Group segment, offset by moderating customer traffic and purchasing patterns in our Sally Beauty segment due to the inflationary environment,” said Denise Paulonis, president and chief executive officer of Sally Beauty, in announcing the financial results.
“Amid these headwinds, our teams continued to advance our strategic initiatives and deliver compelling experiences to our customers while focusing on long-term growth and profitability. We further optimized our balance sheet by refinancing our $680 million senior unsecured bond due 2025, which was extended to 2032.
We also generated strong functioning cash flow of $37 million during the quarter, allowing us to return value to shareholders through our share repurchase program.”