Sally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies with operations primarily in North America, South America, and Europe. Segments The company operates two business segments, Sally Beauty Supply, and Beauty Systems Group (BSG), including its franchise-based business Armstrong McCall. BSG operates stores under the CosmoProf service mark. SALLY BEAUTY SUPPLY The Sally Beauty Supply segment is an open-line distributor of professional beauty supplies in the U.S. As of September 30, 2013, Sally Beauty Supply operated 3,403 company-operated retail stores, 2,710 of which are located in the U.S. (with the remaining 693 company-operated retail stores located in Canada, Mexico, Chile, the United Kingdom, Ireland, Belgium, France, Germany, the Netherlands and Spain). Sally Beauty Supply also supplied 21 franchised stores located in the United Kingdom and certain other European countries. The company’s Sally Beauty Supply stores carry an extensive selection of professional beauty supplies for both retail customers and salon professionals, with between 6,000 and 10,000 stock keeping units, or SKUs, of beauty products across product categories, including hair color, hair care, skin and nail care, beauty sundries and electrical appliances. Sally Beauty Supply stores carry third-party brands, such as Clairol, Revlon and Conair, as well as a selection of exclusive-label merchandise. In addition, Sally Beauty Supply offers a comprehensive selection of ethnic products with specific appeal to African-American and Hispanic customers. Third-Party Branded Products: Sally Beauty Supply offers a selection of hair care products, nail care products, beauty sundries and appliances, featuring third-party brands such as Clairol, Revlon and Conair. In addition, Sally Beauty Supply offers a selection of exclusive-label merchandise. The merchandise Sally Beauty Supply carries includes products from one or more of the manufacturers in each category. Exclusive-Label Products: Sally Beauty Supply offers a selection of exclusive-label professional beauty products. BEAUTY SYSTEMS GROUP The BSG segment is a full-service distributor of professional beauty supplies in North America, exclusively targeting salons and salon professionals. As of September 30, 2013, BSG had 1,084 company-operated stores, supplied 161 franchised stores and had a sales force of approximately 982 professional distributor sales consultants in all states in the U.S., in portions of Canada, and in Puerto Rico, Mexico and certain European countries. Through BSG's large store base and sales force, including its franchise-based business Armstrong McCall, BSG is able to access a significant portion of the highly fragmented U.S. professional beauty sales channel. BSG and Armstrong McCall stores provide a selection of between 5,000 and 10,000 beauty product SKUs that include hair color, hair care, skin and nail care, beauty sundries and electrical appliances. Certain BSG products are sold under exclusive distribution agreements with suppliers, whereby BSG is designated as the sole distributor for a product line within certain geographic territories. Some products are available in bulk packaging for higher volume salon needs. Certain BSG products are sold under exclusive arrangements with suppliers, whereby BSG is designated the sole distributor for a specific brand name within certain geographic territories. Sales and Distribution The professional beauty supply industry serves end-users through four distribution channels: full-service/exclusive distribution, open-line distribution, direct and mega-salon stores. Full-Service/Exclusive: This channel exclusively serves salons and salon professionals and distributes ‘professional-only’ products for use in salons and resale to consumers in salons. BSG is a full-service distributor in the U.S. Open-Line: This channel serves retail consumers and salon professionals through retail stores and the Internet. Direct: This channel focuses on direct sales to salons and salon professionals by large manufacturers. Mega-Salon Stores: In this channel, large-format salons are supplied directly by manufacturers due to their large scale. Strategy Main elements of the company’s strategy include the following: relationships with suppliers; expand store base; grow internationally; increase operating efficiency and profitability; and pursue strategic acquisitions and new territories for organic growth. Trademarks and Other Intellectual Property Rights Together with its subsidiaries, the company owns approximately 280 trademark registrations in the U.S., and approximately 1,150 trademark registrations outside the U.S. Regulation In the U.S., most of the products sold and the content and methods of advertising and marketing utilized are regulated by a host of federal agencies, including, in each case, one or more of the following: the Food and Drug Administration, or FDA, the Federal Trade Commission, or FTC, and the Consumer Products Safety Commission. History Sally Beauty Holdings, Inc. was founded in 1964.
sally beauty holdings inc
3001 Colorado Boulevard
Denton, TX 76210
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