Sep 30, 2021

Sally Beauty Q4 2021 Earnings Report

Reported strong Q4 performance with net sales growth and adjusted operating margin.

Key Takeaways

Sally Beauty Holdings reported a 3.4% increase in consolidated net sales to $990 million, with a same-store sales increase of 2.1%. The GAAP diluted EPS was $0.59, and the adjusted diluted EPS was $0.64. The company's GAAP operating margin was 11.2%, and the adjusted operating margin was 11.7%.

Consolidated net sales increased 3.4% to $990 million with a same store sales increase of 2.1%.

Global e-commerce sales were $71 million, representing 7.1% of net sales.

GAAP operating earnings were $111 million and GAAP operating margin of 11.2%, Adjusted Operating Earnings of $116 million and Adjusted Operating Margin of 11.7%.

GAAP diluted net earnings per share of $0.59 and Adjusted Diluted Net Earnings Per Share of $0.64.

Strong cash flow from operations of $164 million, primarily driven by strong earnings and timing of working capital requirements.

Total Revenue
$990M
Previous year: $958M
+3.4%
EPS
$0.64
Previous year: $0.63
+1.6%
Consolidated Same-Store Sales
2.1%
Previous year: 1.3%
+61.5%
Gross Profit
$501M
Previous year: $489M
+2.4%
Cash and Equivalents
$401M
Previous year: $514M
-22.0%
Free Cash Flow
$135M
Previous year: $131M
+3.0%
Total Assets
$2.85B
Previous year: $2.9B
-1.6%

Sally Beauty

Sally Beauty

Sally Beauty Revenue by Segment

Forward Guidance

The Company’s full year guidance for fiscal year 2022 is outlined below and additional perspective will be provided during the earnings conference call.

Positive Outlook

  • Net sales are expected to increase 3% to 4% compared to the prior year.
  • Net store count is expected to decrease by approximately 1% to 2% for the fiscal year, reflecting the Company’s focus on optimizing its store portfolio.
  • Gross margin is expected to expand by 40 to 60 basis points compared to the prior year.
  • GAAP operating margin is expected to increase by approximately 90 to 110 basis points compared to fiscal year 2021.
  • Adjusted Operating Margin is expected to be approximately flat compared to fiscal year 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income