NEW YORK – Shares of Denton-based Sally Beauty Holdings Inc. tumbled 13 percent Wednesday, a day after the recently spun-off beauty supplies company said it lost certain exclusive distribution rights for L'Oreal products.

Shares tumbled $1.21 to $8.05 on the New York Stock Exchange. The company was spun off from hair care products maker Alberto-Culver Co. in November.

The loss of the rights will chomp about $110 million off sales during the last nine months of the 2007 fiscal year, the company said.

Two analysts downgraded Sally Beauty on the news.

In a note to clients, Oppenheimer & Co. analyst Linda Bolton Weiser estimated the rights loss would cut Sally Beauty's total sales by 6 percent, or $150 million annually. She cut her rating to "sell" from "neutral" and said share prices could fall 15 percent.

Prudential Equity Group analyst Constance M. Maneaty cut her rating on the shares to "underweight" from "neutral" and cut her target price to $9 from $11.

Her estimates for the financial impact include a hit of 4 cents per share for fiscal 2007 earnings. Margins could also rise, due to fixed costs, the analyst wrote. The company will still need to pay for sales consultants who now have fewer products to sell, Ms. Maneaty said.

The company said Tuesday that its Beauty Supplies Group will lose its exclusive rights to distribute L'Oreal USA professional products, as well as its rights to distribute L'Oreal's Redken professional products through distributor sales consultants or its stores.