Loading...
•
Sep 30, 2022
Sally Beauty Q4 2022 Earnings Report
Announced fourth quarter and full year fiscal 2022 results, reporting adjusted diluted EPS of $0.50 and adjusted operating margin of 8.7%.
Key Takeaways
Sally Beauty Holdings reported Q4 2022 results with net sales of $962 million, a decrease of 2.8% compared to the prior year, and comparable sales flat to the prior year. GAAP diluted EPS was $0.20, while adjusted diluted EPS was $0.50. The company announced a distribution center consolidation and acceleration of store optimization plan, outlining new strategic initiatives and long-term outlook, and providing fiscal 2023 guidance.
Consolidated net sales decreased by 2.8% to $962 million, with comparable sales flat to the prior year.
Global e-commerce sales accounted for 9.3% of net sales, totaling $90 million.
GAAP gross margin decreased to 48.2%, while adjusted gross margin decreased to 50.1%.
GAAP diluted net earnings per share was $0.20, and adjusted diluted net earnings per share was $0.50.
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 providing the following guidance for the full fiscal year 2023: 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, our expanded Regis distribution and new strategic initiatives; Net sales are expected to decline by low-single digits compared to the prior year; Gross Margin is expected to remain above 50%; and Adjusted Operating Margin is expected to be in the range of 8.5% and 9.5%, inclusive of investment in our store labor as we lean in to elevating the expertise of our associates to drive our growth in the coming years.
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
- Expanded Regis distribution
- New strategic initiatives
Challenges Ahead
- Net sales are expected to decline by low-single digits compared to the prior year. This reflects approximately 150 to 200 basis points of net unfavorable impact due to store closures and expected sales recapture rates from our optimization efforts, and approximately 150 basis points of anticipated impact from foreign exchange headwinds
- Net sales are expected to decline by low-single digits compared to the prior year.
- 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 our store labor as we lean in to elevating the expertise of our associates to drive our growth in the coming years.
Revenue & Expenses
Visualization of income flow from segment revenue to net income