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Jun 30, 2023
Sally Beauty Q3 2023 Earnings Report
Reported third quarter fiscal 2023 results and maintained full year sales guidance while updating operating margin outlook to high end of previous range.
Key Takeaways
Sally Beauty Holdings reported consolidated net sales of $931 million, a decrease of 3.2% compared to the prior year, but consolidated comparable sales increased 0.6%. The company's GAAP diluted EPS was $0.46, while the adjusted diluted EPS was $0.49. They are on track with their operating initiatives and the financial guidance they originally laid out for fiscal 2023.
Q3 GAAP Operating Margin was 9.7%; Adjusted Operating Margin was 9.6%
Q3 GAAP Diluted EPS was $0.46; Adjusted Diluted EPS was $0.49
Introduced New Store Concept – Happy Beauty Co.
Global e-commerce sales increased 3% to $83 million, representing 8.9% of net sales
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 fiscal year 2023 guidance by revising its Adjusted Operating Margin to the higher end of the original guidance. All other components of the Company’s full fiscal year 2023 original guidance are being maintained.
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
- Expanded Regis distribution
- New strategic initiatives
- Gross margin is expected to remain above 50%
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
- Store closures from the Company’s store optimization efforts
- Net of expected sales recapture rates
- Adjusted Operating Margin is now expected to be in the range of 9.0% and 9.4%
- Previously Adjusted Operating Margin was expected to be in the range of 8.5% to 9.5%
Revenue & Expenses
Visualization of income flow from segment revenue to net income