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Dec 31, 2019
Sally Beauty Q1 2020 Earnings Report
Announced first quarter results impacted by traffic decline and technology disruptions.
Key Takeaways
Sally Beauty Holdings reported a decrease in consolidated net sales by 0.9% to $980.2 million, driven by a decrease in same store sales. GAAP diluted EPS decreased by 16.7% to $0.45, and adjusted diluted EPS decreased by 17.5% to $0.47.
Consolidated same store sales decreased 0.3%.
Beauty Systems Group same store sales were positive for the third consecutive quarter at 1.2%, with segment revenue reaching an all-time quarterly high.
Global e-commerce sales increased by 27.6%.
GAAP diluted EPS was $0.45, a decline of 16.7%.
Revenue by Segment
Forward Guidance
The Company is maintaining its revenue and same store sales guidance, while adjusting its Adjusted Operating Earnings guidance to flat to the prior year.
Positive Outlook
- Maintaining revenue guidance.
- Maintaining same store sales guidance.
- Debt reduction.
- Share repurchases to date.
- Committed to invest as necessary to complete the ongoing Transformation Plan.
Challenges Ahead
- Implementation challenges of the first quarter.
- Adjusted Operating Earnings guidance is modified to flat to prior year.
- Maintaining EPS guidance for the year, but at the lower end of the range.
- Traffic declined at both Sally Beauty Supply and specialty retail.
- Implementation-related technology disruptions led to product pricing issues.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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