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The Sallys Beauty Saga Continues

Sallys Beauty Supply
What more can befall poor Sally’s Beauty Supply?

It all started in January with my article Regis and Sally’s Beauty Supply, in which the whole mess got started with proposed marriage between Sally and Regis. Then in April Sally gave back the ring, Sally’s Beauty Supply – Regis deal is off when everybody found out that Regis didn’t have as fat a wallet as they thought. Then in another April story, Sally Beauty Supply, nobody wants her Sally’s parents announced they were hunting for a new beau for Sally. Finding nobody, they foisted the wounded Sally on the rest of us by selling stock to the public. I am sure glad I did not buy any of the stock (had I known, I probably would have).

“Now Sally’s Beauty Supply is a soap opera”

Now comes news that Sally’s Beauty Supply is losing the exclusive rights to market the L’Oreal line of hair care products. Looks like the French three piece suits are going to be letting their new offspring The Body Shop in on some of the action. Also it looks like Sally may be having some difficulties with Redken as well as the same press release announces that Sally’s Armstrong-McCall division will be ceasing to distribute Redken products. What this means is that Sally will take a $110 million loss. What a shame, I really do like my local Sally’s Beauty Supply. At this point it seems it might be seeing some changes.

BY SANDRA GUY Business Reporter

French hair-care giant L’Oreal surprised Sally’s Beauty Holdings, the spin-off of Alberto-Culver, by taking away Sally’s exclusive rights to sell L’Oreal’s shampoo and hair-care products to beauty salons.



1 Comment »

  1. You might look more carefully at numbers : the distribution right is worth 110 M$ in revenues for nine months, around 5M$ of net profits. That’s not a shame !

    Take care, look at the fundamentals and be greedy when others are fearful. Load the boat and wait 3Y.

    Best regards

    Comment by Guillaume Dontigny — January 1, 2007 @ 12:45 pm

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