Sally Beauty Holdings (NYSE: SBH) reported Q3 EPS of $0.41, $0.05 worse than the analyst estimate of $0.46. Revenue for the quarter came in at $967.9 million versus the consensus estimate of $975.67 million.

3Q15 same store sales growth of 3.1% versus 2.1% in 3Q14.

“We are disappointed in the Q3 results for our Sally business, but not discouraged,” stated President & CEO Christian Brickman. “It is taking longer than we expected for traffic from the non-Beauty Club Card customer to recover, but we still have great confidence that we are moving in the right direction. Over the next several quarters, we expect continued progression in our consolidated Sally same store sales back to historical trend levels of 3% to 4% as we plan to complete the execution of our planned initiatives and our customers have the chance to experience these changes in our stores.

“As we enter Q4, we believe the disruption caused by the recent data security incident is now behind us. We intend to further enhance our systems and culture to ensure the security of our networks and customer data, and our Sally team continues to be laser focused on driving sales progression. To deliver on this objective, we will invest in national TV for the Sally brand through our sponsorship of Project Runway® which will begin to air early August. We expect to complete the reset of our cash-wrap area, upgrade our channel leading eyelash studio, and significantly improve the look and shopability of the cosmetics section in the stores. Finally, we plan to continue our store refresh program and refine our recently launched CRM model,” Brickman added.

“Looking forward to fiscal 2016, we now expect that Sally Beauty segment same store sales will continue to improve sequentially and reach historical growth levels of 3% to 4% in the back half of next year. On the expense side, we anticipate significant labor and rental cost inflation to affect our business as we compete for talent and real estate with other retailers. We plan to offset the bulk of these increases through cost reductions and tactical pricing measures. However, we now believe that this cost inflation will be a moderate drag on operating earnings growth for next year.”

For earnings history and earnings-related data on Sally Beauty Holdings (SBH) click here.