| Segments and Disaggregated Revenue |
16.Segments and Disaggregated Revenue Our segments are defined on how our chief operating decision maker, which we consider the CEO and CFO together, regularly reviews performance and allocates resources to our operating segments. Our business is organized into two reportable segments: (i) SBS, a domestic and international chain of retail stores and a consumer-facing e-commerce website that offers professional beauty supplies to both salon professionals and retail customers primarily in North America, Puerto Rico and parts of Europe and South America and (ii) BSG, including its franchise-based business Armstrong McCall, a full-service distributor of beauty products and supplies that offers professional beauty products directly to salons and salon professionals through its professional-only stores, e-commerce platforms and its own sales force in partially exclusive geographical territories in the U.S. and Canada. The accounting policies of both of our reportable segments are the same as described in the summary of significant accounting policies contained in Note 1. Sales between segments, which were eliminated in consolidation, were not material for the fiscal years ended September 30, 2024, 2023 and 2022. Business Segments Information Segment data for the fiscal years 2024, 2023 and 2022 are as follows (in thousands):
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2024 |
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2023 |
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2022 |
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Net sales (a) (for the fiscal year indicated): |
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SBS |
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$ |
2,107,089 |
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$ |
2,139,206 |
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$ |
2,193,044 |
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BSG |
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1,609,942 |
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1,588,925 |
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|
|
1,622,521 |
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Total |
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$ |
3,717,031 |
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$ |
3,728,131 |
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|
$ |
3,815,565 |
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Earnings before provision for income taxes: |
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Segment operating earnings: |
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SBS |
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$ |
334,319 |
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|
$ |
358,474 |
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$ |
350,884 |
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BSG |
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|
178,420 |
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|
181,275 |
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|
193,407 |
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Segment operating earnings |
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512,739 |
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|
539,749 |
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|
544,291 |
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Unallocated expenses (b) |
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230,081 |
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|
197,515 |
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|
179,074 |
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Restructuring |
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(75 |
) |
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17,205 |
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|
27,577 |
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Consolidated operating earnings |
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282,733 |
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325,029 |
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|
337,640 |
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Interest expense |
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76,408 |
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72,979 |
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|
93,543 |
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Earnings before provision for income taxes |
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$ |
206,325 |
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$ |
252,050 |
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$ |
244,097 |
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Depreciation and amortization: |
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SBS |
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$ |
60,284 |
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$ |
57,663 |
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$ |
57,798 |
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BSG |
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36,778 |
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32,362 |
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30,098 |
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Corporate |
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12,676 |
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12,384 |
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|
12,033 |
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Total |
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$ |
109,738 |
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$ |
102,409 |
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$ |
99,929 |
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Payments for property and equipment: |
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SBS |
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$ |
60,160 |
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$ |
52,535 |
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$ |
53,788 |
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BSG |
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31,986 |
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30,581 |
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34,312 |
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Corporate |
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9,019 |
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7,626 |
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|
11,150 |
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Total |
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$ |
101,165 |
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$ |
90,742 |
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$ |
99,250 |
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Total assets (as of September 30): |
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SBS |
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$ |
1,358,102 |
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$ |
1,279,200 |
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$ |
1,195,732 |
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BSG |
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1,324,071 |
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1,293,157 |
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1,251,455 |
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Sub-total |
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2,682,173 |
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2,572,357 |
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2,447,187 |
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Corporate |
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110,726 |
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152,893 |
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129,680 |
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Total |
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$ |
2,792,899 |
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|
$ |
2,725,250 |
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|
$ |
2,576,867 |
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a)In the fiscal years 2024, 2023 and 2022, no single customer accounted for 10% or more of revenue. b)Unallocated expenses consist of corporate and shared costs and are included in selling, general and administrative expenses in our consolidated statements of earnings. Geographic Area Information Certain geographic data is as follows (in thousands):
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2024 |
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2023 |
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2022 |
Net sales (for the fiscal year indicated): |
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United States |
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$ |
3,026,946 |
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$ |
3,050,334 |
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$ |
3,142,898 |
Other countries |
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690,085 |
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677,797 |
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|
672,667 |
Total |
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$ |
3,717,031 |
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$ |
3,728,131 |
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$ |
3,815,565 |
Long-lived assets (as of September 30): |
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United States |
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$ |
230,469 |
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$ |
258,157 |
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$ |
263,929 |
United Kingdom |
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9,065 |
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9,988 |
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9,147 |
Other countries |
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30,338 |
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29,634 |
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|
24,800 |
Total |
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$ |
269,872 |
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$ |
297,779 |
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$ |
297,876 |
Disaggregated Revenues The following tables disaggregate our segment revenues by merchandise category. We have reclassified certain prior year amounts to conform to current year presentation.
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Fiscal Year Ended September 30, |
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SBS |
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2024 |
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2023 |
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2022 |
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Hair color |
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40.0 |
% |
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39.9 |
% |
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38.2 |
% |
Hair care |
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24.4 |
% |
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23.9 |
% |
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23.6 |
% |
Styling tools and supplies |
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16.8 |
% |
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17.9 |
% |
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19.1 |
% |
Nail |
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10.3 |
% |
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10.1 |
% |
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10.8 |
% |
Skin and cosmetics |
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7.9 |
% |
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7.6 |
% |
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7.6 |
% |
Other beauty items |
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0.6 |
% |
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0.6 |
% |
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0.7 |
% |
Total |
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100.0 |
% |
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100.0 |
% |
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100.0 |
% |
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Fiscal Year Ended September 30, |
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BSG |
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2024 |
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2023 |
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2022 |
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Hair care |
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42.2 |
% |
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42.3 |
% |
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43.5 |
% |
Hair color |
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41.0 |
% |
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40.2 |
% |
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39.0 |
% |
Styling tools and supplies |
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10.5 |
% |
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10.6 |
% |
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10.9 |
% |
Skin and cosmetics |
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3.6 |
% |
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3.9 |
% |
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3.8 |
% |
Nail |
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2.5 |
% |
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2.7 |
% |
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2.4 |
% |
Other beauty items |
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0.2 |
% |
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0.3 |
% |
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0.4 |
% |
Total |
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100.0 |
% |
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100.0 |
% |
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|
100.0 |
% |
The following table disaggregates our segment revenue by sales channels:
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SBS |
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BSG |
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Fiscal Year Ended September 30, |
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Fiscal Year Ended September 30, |
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2024 |
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2023 |
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2022 |
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2024 |
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2023 |
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2022 |
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Company-operated stores |
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93.1 |
% |
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93.8 |
% |
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94.0 |
% |
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68.4 |
% |
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67.2 |
% |
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66.4 |
% |
E-commerce |
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6.9 |
% |
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6.2 |
% |
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6.0 |
% |
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13.6 |
% |
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13.5 |
% |
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12.3 |
% |
Franchise stores |
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|
— |
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— |
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— |
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7.4 |
% |
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7.5 |
% |
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7.4 |
% |
Distributor sales consultants |
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— |
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— |
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— |
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10.6 |
% |
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11.8 |
% |
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13.9 |
% |
Total |
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100.0 |
% |
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100.0 |
% |
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|
100.0 |
% |
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|
100.0 |
% |
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|
100.0 |
% |
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|
100.0 |
% |
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