Business Segments

6 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Business Segments

9.   Segment Reporting

Segment data for the three and six months ended March 31, 2022 and 2021, is as follows (in thousands):

	Three Months Ended March 31,				Six Months Ended March 31,
	2022		2021		2022		2021
Net sales:
Sally Beauty Supply ("SBS")	$	525,785	$	542,664	$	1,087,315	$	1,090,334
Beauty Systems Group ("BSG")		385,602		383,664		804,323		772,016
Total	$	911,387	$	926,328	$	1,891,638	$	1,862,350
Earnings before provision for income taxes:
Segment operating earnings:
SBS	$	80,940	$	100,063	$	181,563	$	195,191
BSG		46,008		47,843		104,554		96,415
Segment operating earnings		126,948		147,906		286,117		291,606
Unallocated expenses		40,487		71,764		85,777		110,910
Restructuring		—		631		1,099		863
Consolidated operating earnings		86,461		75,511		199,241		179,833
Interest expense		19,896		23,883		40,137		49,861
Earnings before provision    for income taxes	$	66,565	$	51,628	$	159,104	$	129,972

Sales between segments, which are eliminated in consolidation, were not material during the three and six months ended March 31, 2022 and 2021.

Disaggregation of net sales by segment  

The following tables disaggregate our segment revenues by merchandise category. We have reclassified certain prior year amounts to conform to current year presentation.

	Three Months Ended March 31,						Six Months Ended March 31,
SBS	2022			2021			2022			2021
Hair color		38.1	%		35.8	%		37.4	%		35.9	%
Hair care		24.1	%		21.7	%		24.0	%		21.4	%
Styling tools and supplies		19.2	%		22.8	%		19.7	%		22.9	%
Nail		10.6	%		10.7	%		10.5	%		10.8	%
Skin and cosmetics		7.4	%		8.3	%		7.7	%		8.3	%
Other beauty items		0.6	%		0.7	%		0.7	%		0.7	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

	Three Months Ended March 31,						Six Months Ended March 31,
BSG	2022			2021			2022			2021
Hair color		42.7	%		42.6	%		42.4	%		41.4	%
Hair care		39.9	%		38.8	%		39.9	%		39.0	%
Styling tools and supplies		11.2	%		11.2	%		11.3	%		11.8	%
Skin and cosmetics		3.5	%		4.0	%		4.0	%		4.3	%
Nail		2.3	%		2.9	%		2.1	%		3.1	%
Other beauty items		0.4	%		0.5	%		0.3	%		0.4	%
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	2022			2021			2022			2021
Company-operated stores		93.7	%		93.0	%		94.0	%		93.5	%
E-commerce		6.3	%		6.9	%		6.0	%		6.5	%
Franchise stores		0.0	%		0.1	%		0.0	%		0.0	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

	Three Months Ended March 31,						Six Months Ended March 31,
BSG	2022			2021			2022			2021
Company-operated stores		66.6	%		70.2	%		67.1	%		69.9	%
Distributor sales consultants		14.0	%		13.7	%		13.8	%		14.0	%
E-commerce		12.4	%		9.1	%		12.0	%		8.8	%
Franchise stores		7.0	%		7.0	%		7.1	%		7.3	%
Total		100.0	%		100.0	%		100.0	%		100.0	%