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Mar 31, 2023
Sally Beauty Q2 2023 Earnings Report
Sally Beauty's Q2 2023 financial results were reported, showing an increase in consolidated comparable sales and a successful term loan refinancing.
Key Takeaways
Sally Beauty Holdings reported a 0.8% increase in consolidated net sales, reaching $919 million. Consolidated comparable sales increased by 5.7%, and global e-commerce sales grew by 9% to $87 million. The company's GAAP diluted EPS was $0.37, with an adjusted diluted EPS of $0.41. They also refinanced their $406 million term loan, extending the maturity to 2030.
Consolidated comparable sales increased by 5.7%.
Global e-commerce sales increased 9% to $87 million, representing 9.5% of net sales.
GAAP operating margin was 7.8%, with an adjusted operating margin of 8.3%.
Successfully refinanced $406 million term loan, extending the maturity to 2030.
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 maintaining the following guidance for full fiscal year 2023:
Positive Outlook
- Comparable sales are expected to increase by low single digits compared to the prior year, driven by growth in key categories, sales transfer from store closures related to the Company’s store optimization efforts, the expanded Regis distribution and new strategic initiatives
- Gross margin is expected to remain above 50%
- Adjusted Operating Margin is expected to be in the range of 8.5% and 9.5%, inclusive of investment in store labor as the Company focuses on elevating the expertise of its associates to drive growth in the coming years.
Challenges Ahead
- Net sales are expected to decline by low-single digits compared to the prior year, reflecting the unfavorable impact due to store closures from the Company’s store optimization efforts, net of expected sales recapture rates, and the anticipated unfavorable impact from foreign exchange headwinds
Revenue & Expenses
Visualization of income flow from segment revenue to net income