Beauty Industry

Strong Sales Growth for Alberto-Culver

The company, whose brands also include Nexxus and St. Ives, said revenue increased 19% to $417.6 million.

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By: Jamie Matusow

Editor-in-Chief

Alberto-Culver Co.’s earnings jumped 69% on sales growth for its hair-care products and a drop in commodity costs, The Wall Street Journal reports.

The personal-care and household-products company continues to seek growth through acquisitions. But the company, known for its affordable beauty products, faces heightened competition as bigger rivals use lower prices and promotions to attract thrift-minded consumers.

For the fiscal third-quarter ended June 30, Alberto-Culver reported a profit of $47.2 million, or 47 cents a share, up from $28 million, or 28 cents a share, a year earlier. Excluding items such as impacts from a dispute with a supplier, earnings rose to 39 cents a share from 30 cents a share.

The company, whose brands also include Nexxus and St. Ives, said revenue increased 19% to $417.6 million. Excluding currency fluctuations, acquisitions and divestitures, growth was 11%.

Analysts polled by Thomson Reuters forecast earnings of 37 cents a share on revenue of $391 million. Gross margin rose to 51.5% from 50.8%, mostly on lower commodity costs. Sales rose 13% in the U.S. and 29% internationally, with most of that growth coming from currency fluctuations.

Advertising and marketing expenses rose 20%, mostly due to double-digit increases on a percentage basis for its TRESemme and St. Ives brands, as well as its Simple Health & Beauty Group Ltd. acquisition.

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