Why Sally Beauty Supply Stock Jumped 24% at the Open Today

What happened

Shares of Sally Beauty Supply (NYSE:SBH), a retailer focused on exactly what its name implies, soared 24% in early trading on May 6. The news driving the advance was the company’s pre-market earnings release. But the story here is actually a bit bigger.

So what

Sally Beauty’s fiscal second-quarter 2021 sales increased 6.3% year over year. Same-store sales rose 6.5%, with global e-commerce sales higher by 56%. Adjusted earnings per share came in at $0.57, up 148% versus the year-ago period. Wall Street was expecting quarterly earnings of $0.15 per share, so this was a significant earnings beat, which is the type of thing investors like to see.   

A hand swiping a credit card through a credit card machine.

Image source: Getty Images.

However, the bigger takeaway here is that Sally Beauty’s U.S. business is starting to rebound. That’s being driven by the economy reopening and the vaccine rollout, as well as stimulus checks. The company

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Beauty Hive Beauty Supply opens location in downtown South Bend | Market Basket

Willie Dearing was tired of the beauty supply store options in the area. For years, she noticed that the personable touch that she and other Black women wanted when shopping for wigs and hair products was simply not there.

“They have everything you would want to look for in a beauty supply store, but they have no personal understanding of what they’re selling,” Dearing said. “The people who own the hair stores or sell wigs to Black women, they have cosmetics and things that women wear, but they’re all men.”

So she began to talk with family and friends about whether they would support a business owned and operated by a Black woman and said she got an overwhelmingly positive response. As a woman in her early 60s, she said she has already had a career and is currently attending Indiana University South Bend and taking poetry classes. But this

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Black owned beauty supply store is aiming to diversify market

Despite the beauty supply industry making $50 billion last year, African Americans surprisingly only own three percent of that market.

LITTLE ROCK, Ark — Professor Devin Robinson is the founder of Beauty Supply Institute out of Georgia. He states that last year in the U.S. alone, the beauty supply business made $50 billion, yet African Americans only own 3% of that market. 

The beauty supply industry is a 96% ethnic market.

The majority of products are catered to African Americans. Despite this, many distributors and store owners are of Asian decent.

“Obviously this industry is dominated by Asians,” Robinson said.

“They don’t live in our community, but their business does and they get our money. It’s important for us in general to own our own businesses, especially those that are consumed highly by us.” 

Bobby Perkins decided to research Robinson’s institute before he opened up his own beauty supply store,

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Beauty supply store empowers Black children to love their hair

CLIFTON PARK — When Stefanie Thomas was growing up in a predominately white neighborhood in Glens Falls she had to drive over forty-five minutes to find hair products for her kinky curly hair.

“Growing up I didn’t know what to do with my hair,” Thomas said. “My mother’s white and she had no idea what to do with my hair. I wanted to fit in, so I would straighten my hair, I was teased as a kid because my hair was puffy so I developed deep-rooted insecurity about my hair and took that into my adulthood.”

As Thomas’ own daughter, age 10, began to grow up and develop insecurities about her own hair, Thomas wanted better for her. That’s why Thomas decided to open Stefanie’s Beauty Supply  in Clifton Park, featuring a wide range of products for curly hair. 

The store, located at 54 Crossing Blvd., sells hair, wigs, extensions,

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Ulla Johnson created a new supply chain from scratch

At Ulla Johnson’s recent fashion show, models walked through the empty halls of Lincoln Center in the designer’s signature intricately patterned, ruffled gowns, as ethereal chamber music played. Johnson’s designs are inspired by her travels, but what most people don’t realize is that the garments themselves are made by women she has met in small villages all over the world.

[Photo: courtesy Ulla Johnson]

Johnson launched her label in 1998 and quickly made a name for herself for her feminine, bohemian aesthetic. A-listers love the brand, with everyone from Sarah Jessica Parker to Jennifer Lawrence to Greta Gerwig counting themselves as fans. Like many other New York designers, Johnson began by making her collections in the city’s Garment District, but eight years ago, she made the radical decision to transform her entire supply chain. She now travels the globe to find communities of highly skilled craftswomen off the beaten track

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Her short-term plan to run a beauty supply store went awry

EVERETT — Decarla Stinn’s business plan for a beauty supply store terminated at the 10-year mark, a span that would cover her daughter’s school and college years.

Afterward, she aimed to close up shop and retire.

“That’s it! I was only planning on putting her through school,” said Stinn. “After that, I was supposed to be out.”

But customers foiled her plans.

Decarla’s Beauty Supply & Salon at 607 SE Everett Mall Way, which carries human and synthetic wigs, hairpieces and extensions, is now in its 17th year of business.

“I don’t know what I’d do without her,” said Jenny Reser, a mortgage banker who depends on Stinn to give her sandy-blonde hair some oomph.

“I have very thin, fine hair,” the Snohomish resident said. “She does extensions for my hair and blends them in.”

The salon’s customers include men and women in the midst of chemotherapy treatments or with

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