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Dec 31, 2021
Sally Beauty Q1 2022 Earnings Report
Reported strong sales, gross margin, and profit growth for the first quarter of fiscal year 2022.
Key Takeaways
Sally Beauty Holdings reported a solid first quarter in fiscal year 2022, marked by a 4.7% increase in consolidated net sales to $980 million and a comparable sales increase of 6.1%. The company's gross margin improved to 51.0%, and profitability saw significant improvement.
Consolidated net sales increased by 4.7% to $980 million, with a comparable sales increase of 6.1%.
Global e-commerce sales reached $81 million, accounting for 8.3% of net sales.
Gross margin improved to 51.0%, up 70 basis points compared to the prior year.
GAAP diluted net earnings per share increased to $0.60, and Adjusted Diluted Net Earnings Per Share increased to $0.63, a 26% increase compared to the prior year.
Revenue by Segment
Forward Guidance
The Company is reiterating its full year guidance for fiscal year 2022.
Positive Outlook
- Net sales are expected to increase 3% to 4% compared to the prior year.
- Gross margin is expected to expand by 40 to 60 basis points compared to the prior year.
- GAAP operating margin is expected to increase by approximately 90 to 110 basis points compared to fiscal year 2021.
- Focus on optimizing store portfolio.
- Leveraging digital platform, driving loyalty and personalization.
Challenges Ahead
- Net store count is expected to decrease by approximately 1% to 2% for the fiscal year, reflecting the Company’s focus on optimizing its store portfolio.
- Dynamic macro environment, including the recent omicron surge.
- Supply chain challenges.
- Planned marketing investments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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