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Mar 31
Sally Beauty Q2 2025 Earnings Report
Sally Beauty reported Q2 2025 results with a rise in profitability and continued margin expansion despite a decline in revenue.
Key Takeaways
Sally Beauty delivered improved profitability for the third consecutive quarter, driven by gross margin expansion and disciplined cost controls, even as sales declined slightly due to macroeconomic challenges.
Net income increased to $39.2 million, up from $29.2 million last year.
Adjusted EPS rose to $0.42, a 20% increase from the prior year.
Gross margin expanded by 100 basis points to 52.0%.
Free cash flow reached $32.2 million, supporting debt repayment and share repurchases.
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
Sally Beauty expects flat to slightly negative comparable sales in Q3 and full-year 2025, with adjusted operating margins holding steady in the 8.0% to 8.5% range.
Positive Outlook
- Maintaining adjusted operating margin guidance of 8.0% to 8.5%.
- Strong cash generation expected to continue.
- Continued benefit from cost control measures.
- Steady e-commerce performance expected.
- Operational efficiency gains from store and distribution optimization.
Challenges Ahead
- Expectations of flat to down 2% comparable sales in Q3.
- Full-year consolidated net sales expected to be impacted by FX.
- Macroeconomic uncertainty could pressure consumer spending.
- No assumed improvements in trade policy or economic outlook.
- Store count continues to decline modestly year-over-year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income