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Mar 31, 2020

Sally Beauty Q2 2020 Earnings Report

Announced second quarter results and updated on COVID-19 impact to business

Key Takeaways

Sally Beauty Holdings, Inc. reported a decrease in consolidated net sales by 7.9% to $871.0 million due to COVID-19 impacts, despite a pre-COVID increase of 4.7% in same store sales. GAAP diluted EPS decreased by 77.8% to $0.12, while adjusted diluted EPS decreased by 54.9% to $0.23.

E-commerce growth accelerated with a +28% increase in Q2, +52% in March, and +353% in April.

Store network restart underway with 1,500 stores open to the public, 1,100 ship-from-store locations, 2,300 curbside locations, and 300 same-day-delivery locations.

Aggressive cash management and incremental liquidity provide a strong runway.

Consolidated same store sales decreased 7.1% for the full quarter, impacted by COVID-19, but increased 4.7% prior to March 12.

Total Revenue
$871M
Previous year: $946M
-7.9%
EPS
$0.23
Previous year: $0.51
-54.9%
Consolidated Same-Store Sales
-7.1%
Previous year: -0.5%
+1320.0%
Gross Profit
$430M
Previous year: $468M
-8.2%
Cash and Equivalents
$364M
Previous year: $89.8M
+305.9%
Free Cash Flow
-$17.3M
Previous year: $37.2M
-146.5%
Total Assets
$2.92B
Previous year: $2.09B
+39.6%

Sally Beauty

Sally Beauty

Sally Beauty Revenue by Segment

Forward Guidance

Due to the uncertainty around COVID-19, the Company withdrew its full-year financial guidance for fiscal year 2020 and is not issuing financial guidance in connection with its second quarter earnings call.

Revenue & Expenses

Visualization of income flow from segment revenue to net income