Dec 31, 2023

Sally Beauty Q1 2024 Earnings Report

Sally Beauty Holdings reported a decrease in consolidated net sales and comparable sales, while maintaining full-year fiscal 2024 guidance.

Key Takeaways

Sally Beauty Holdings reported first quarter fiscal 2024 results, with consolidated net sales of $931 million, a decrease of 2.7% compared to the prior year. The company generated $51 million in cash flow from operations and executed $20 million in share repurchases. The company maintains its full year fiscal 2024 guidance.

Consolidated net sales decreased by 2.7% to $931 million.

Consolidated comparable sales declined by 0.8%.

Global e-commerce sales reached $91 million, representing 9.8% of net sales.

GAAP diluted net earnings per share were $0.35, and Adjusted Diluted Net Earnings Per Share was $0.39.

Total Revenue
$931M
Previous year: $957M
-2.7%
EPS
$0.39
Previous year: $0.52
-25.0%
Gross Profit
$467M
Previous year: $489M
-4.4%
Cash and Equivalents
$121M
Previous year: $99.1M
+22.1%
Free Cash Flow
$20.5M
Previous year: $29.9M
-31.6%
Total Assets
$2.73B
Previous year: $2.67B
+2.4%

Sally Beauty

Sally Beauty

Sally Beauty Revenue by Segment

Forward Guidance

The Company is maintaining the following guidance for the full fiscal year 2024:

Positive Outlook

  • Net sales and comparable sales are expected to be approximately flat compared to the prior year, reflecting growth from the Company’s strategic initiatives
  • Gross Margin is expected to remain above 50%
  • Adjusted Operating Margin is expected to be at least 9.0%
  • Operating Cash Flow is expected to be at least $260 million
  • Capital expenditures are expected to be approximately $100 million

Challenges Ahead

  • Anticipated pressure on consumer spending

Revenue & Expenses

Visualization of income flow from segment revenue to net income