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Jun 30, 2022
Sally Beauty Q3 2022 Earnings Report
Sally Beauty Holdings reported third quarter fiscal 2022 results.
Key Takeaways
Sally Beauty Holdings reported a decrease in consolidated net sales by 6.0% to $961 million, with a comparable sales decrease of 3.6%. Despite these challenges, the company maintained a healthy gross margin of 51% and an adjusted operating margin of 10.5%. The company completed a full repayment of $300 million of 8.75% senior secured notes.
Consolidated net sales decreased by 6.0% to $961 million, with a comparable sales decrease of 3.6%.
Global e-commerce sales reached $81 million, representing 8.4% of net sales.
Gross margin increased by 70 basis points to 51.0%.
GAAP diluted net earnings per share was $0.43, and adjusted diluted net earnings per share was $0.55.
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 updating its full year guidance to reflect continued inflationary pressures and the unfavorable impact from foreign currency exchange rates.
Positive Outlook
- GAAP gross margin is expected to expand by approximately 70 basis points compared to the prior year.
- Adjusted Gross Margin is expected to expand by approximately 50 basis points compared to the prior year.
Challenges Ahead
- Net sales are expected to decline by approximately 2% compared to the prior year. This includes an unfavorable impact from foreign currency exchange rates of approximately 70 basis points on full year guidance and reflects incremental impact in the third quarter and anticipated impact in the fourth quarter compared to prior net sales guidance.
- Net store count is expected to decrease by 90 stores, reflecting the Company’s focus on optimizing its store portfolio.
- GAAP operating margin is expected to be approximately 10.3%.
- Adjusted Operating Margin is expected to be approximately 10.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income