Business Segments

6 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Business Segments

11.   Business Segments

Segment data for the three and six months ended March 31, 2021 and 2020, is as follows (in thousands):

	Three Months Ended March 31,				Six Months Ended March 31,
	2021		2020		2021		2020
Net sales:
Sally Beauty Supply ("SBS")	$	542,664	$	519,509	$	1,090,334	$	1,088,657
Beauty Systems Group ("BSG")		383,664		351,514		772,016		762,574
Total	$	926,328	$	871,023	$	1,862,350	$	1,851,231
Earnings before provision for income taxes:
Segment operating earnings:
SBS	$	100,063	$	56,373	$	195,191	$	130,598
BSG		47,843		41,039		96,415		103,473
Segment operating earnings		147,906		97,412		291,606		234,071
Unallocated expenses		71,764		50,954		110,910		90,694
Restructuring		631		3,193		863		5,725
Consolidated operating earnings		75,511		43,265		179,833		137,652
Interest expense		23,883		21,644		49,861		43,185
Earnings before provision for income taxes	$	51,628	$	21,621	$	129,972	$	94,467

Sales between segments, which are eliminated in consolidation, were not material during the three and six months ended March 31, 2021 and 2020.

Disaggregation of net sales by segment

	Three Months Ended March 31,						Six Months Ended March 31,
SBS	2021			2020			2021			2020
Hair color		35.1	%		32.8	%		35.3	%		31.9	%
Hair care		18.6	%		19.5	%		18.6	%		19.7	%
Skin and nail care		14.0	%		12.8	%		12.3	%		13.5	%
Styling tools		12.2	%		12.7	%		14.4	%		13.4	%
Salon supplies and accessories		8.2	%		7.6	%		7.8	%		7.2	%
Textured hair products		6.4	%		6.1	%		6.0	%		5.7	%
Other beauty items		5.5	%		8.5	%		5.6	%		8.6	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

	Three Months Ended March 31,						Six Months Ended March 31,
BSG	2021			2020			2021			2020
Hair color		43.5	%		40.1	%		42.1	%		38.8	%
Hair care		37.6	%		35.1	%		36.3	%		34.8	%
Skin and nail care		7.2	%		8.2	%		7.7	%		8.2	%
Styling tools		6.2	%		6.2	%		6.6	%		6.5	%
Other beauty items		2.4	%		3.0	%		2.6	%		2.8	%
Promotional items		3.1	%		7.4	%		4.7	%		8.9	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

The following tables disaggregate our segment revenue by sales channels:

	Three Months Ended March 31,						Six Months Ended March 31,
SBS	2021			2020			2021			2020
Company-operated stores		93.0	%		94.9	%		93.5	%		95.4	%
E-commerce		6.9	%		4.9	%		6.5	%		4.4	%
Franchise stores		0.1	%		0.2	%		0.0	%		0.2	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

	Three Months Ended March 31,						Six Months Ended March 31,
BSG	2021			2020			2021			2020
Company-operated stores		70.2	%		70.4	%		69.9	%		69.8	%
Distributor sales consultants		13.7	%		16.6	%		14.0	%		17.3	%
E-commerce		9.1	%		5.9	%		8.8	%		5.7	%
Franchise stores		7.0	%		7.1	%		7.3	%		7.2	%
Total		100.0	%		100.0	%		100.0	%		100.0	%