The Company is a distributor of professional beauty supplies in the United States based on store count and operates primarily through two business units, Sally Beauty Supply and BSG.
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Sally has an excellent management team in place and they have come up with a strategy to make-up for the L'oreal loss in its BSG division. I believe that the they will increase the number of non-L'oreal lines because these manufacturers do not want to be distributed by a company that is owned by L'oreal. L'oreal also has a big problem with the salon industry in that it is the most diverted product out there, meaning that it is sold in non-salon entities. L'oreal is losing their creditability with salons. The new lines that BSG is adding are more poised for growth and are not diverted.