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Dec 31, 2024
Sally Beauty Q1 2025 Earnings Report
Started fiscal year 2025 with top line growth in both business segments and consolidated operating margin expansion.
Key Takeaways
Sally Beauty Holdings reported a solid start to fiscal year 2025, with consolidated net sales increasing by 0.7% to $938 million and comparable sales increasing by 1.6%. The company's GAAP operating margin expanded by 330 basis points to 10.7%, and adjusted operating margin expanded by 50 basis points to 8.4%.
Consolidated net sales increased 0.7% and consolidated comparable sales increased 1.6%.
GAAP operating margin expanded 330 basis points to 10.7%; adjusted operating margin expanded 50 basis points to 8.4%.
Cash flow from operations was $33 million and operating free cash flow was $57 million.
Beauty Systems Group announced a distribution partnership with K18.
Sally Beauty
Sally Beauty
Sally Beauty Revenue by Segment
Revenue by Segment
Sally Beauty Supply Revenue
CapyFin.comBeauty Systems Group Revenue
CapyFin.com Forward Guidance
The Company is reiterating its full year guidance for both comparable sales and Adjusted Operating Margin, and is updating its consolidated net sales guidance to reflect the unfavorable impact from foreign exchange rates for fiscal year 2025.
Positive Outlook
- Comparable sales are expected to be approximately flat compared to the prior year.
- Adjusted Operating Margin is expected to be in the range of 8.0% to 8.3%.
- Comparable sales are expected to be flat to up 2% compared to the prior year.
- Adjusted Operating Margin is expected to be in the range of 8.5% to 9.0%.
- Consistent with prior guidance.
Challenges Ahead
- Consolidated net sales are expected to be approximately 100 basis points lower than comparable sales due to the expected unfavorable impact from foreign exchange rates.
- Consolidated net sales are now expected to be approximately 100 basis points lower than comparable sales due to the expected unfavorable impact from foreign exchange rates.
- Due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of the Company’s control or cannot be reasonably predicted.
- The Company does not provide a reconciliation for forward-looking non-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort.
- Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income