ALBERTO-CULVER SALES GAIN 5% TO $302.8 MIL. IN SECOND QUARTER

ALBERTO-CULVER SALES GAIN 5% TO $302.8 MIL. IN SECOND QUARTER (ended March 31), boosted in part by a 15% increase in Sally Beauty revenues. During the quarter, Sally Beauty opened 52 stores, bringing the total to 1,310. Also contributing to the overall sales advance was a positive second quarter performance by the firm's domestic professional products business, Alberto said in April 28 release. In addition, Alberto VO5 Hot Oil hair treatment and FDS Feminine deodorant spray performed well in the three months.

Sales in the U.S., which include revenues from the firm's specialty food products as well as personal care products, were flat in the second quarter. Alberto noted that sales of its major domestic brands to consumers were ahead in the quarter, but the sales to retailers were down "due to the continuing tightening of retail inventories."

International sales were off 10% in the three months because of continued unfavorable exchange rates and the divestiture of Cameron-Wallace, a portion of Alberto-Culver's Cederroth International subsidiary, during the latter part of 1993. Cameron- Wallace, which markets industrial first aid kids, has annual sales of approximately $12 mil.

Noting that second quarter earnings "exceeded expectations," Alberto-Culver reported net earnings of $9.3 mil., down 17.2%, for the three months. The firm attributed the decline to "increased spending behind new products and continuing difficult trade conditions in the consumer packaged goods field worldwide." Alberto began advertising its two newest product lines, Alberto VO5 Hot Oil Hair Therapy shampoos and conditioners and Village Saucerie gravy and sauce mixes, during the second quarter. Alberto-Culver spent $9 mil. advertising and promoting the products during the first six months of its fiscal year.

First half sales rose 5.3% to $587.4 mil., with Sally Beauty revenues ahead 14%. U.S. sales were flat, and international revenues were down 8%. Alberto-Culver noted that total sales would have advanced more than 7% at comparable exchange rates. While Sally Beauty profits climbed 21% in the first half, overall net earnings slid 10.1% to $19.8 mil.

Alberto-Culver also announced that it has nearly completed the repurchase of 1 mil. shares of its common stock and has received authorization from its board to buy back another 1 mil. shares. The company announced the initial repurchase program last July.