Denton-based Inc. reported a better-than-expected 68 percent jump in fiscal third-quarter profit Thursday, with trends such as hair extensions and feather adornments boosting its basic hair and nail supply business.
In a conference call with analysts, CEO Gary Winterhalter said the company’s domestic and international business is growing, and international now represents about 18 percent of total sales. In the U.S., the company’s Beauty Club Card membership increased 21 percent to about 5 million customers, he said. Those members visit stores more frequently and spend more, he said.
Human hair extensions have been a strong category for five years, and “we don’t see the trend slowing,” Winterhalter said. But supply is tightening, making it harder for mass merchant competitors to be in the category.
Human hair mostly comes from Asia, largely, he said. “There’s a shortage because 2 feet of hair takes a while to grow back.”
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