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Sep 30, 2023
Sally Beauty Q4 2023 Earnings Report
Reported a decrease in net sales and comparable sales, while gross margin and operating earnings increased due to prior year's non-cash inventory write-down
Key Takeaways
Sally Beauty Holdings reported a 4.3% decrease in consolidated net sales to $921 million, with a 1.6% decline in consolidated comparable sales. GAAP gross margin increased by 240 basis points to 50.6%, and GAAP operating earnings rose to $77 million. The company generated $117 million in cash flow from operations and $90 million in operating free cash flow.
Generated Q4 Cash Flow from Operations of $117 Million and Operating Free Cash Flow of $90 Million
Beauty Systems Group Announces Strategic Acquisition of Assets from Goldwell of New York
Executed $15 Million in Share Repurchases and Repaid the Outstanding Balance of $16 Million on ABL Credit Facility
Provides Fiscal 2024 Guidance
Revenue by Segment
Forward Guidance
The Company is providing the following guidance for the full fiscal year 2024: Net sales and comparable sales are expected to be approximately flat compared to the prior year, reflecting growth from the Company’s strategic initiatives, offset by anticipated pressure on consumer spending; Gross Margin is expected to remain above 50%; Adjusted Operating Margin is expected to be at least 9.0%; Operating Cash Flow is expected to be at least $260 million; and Capital expenditures are expected to be approximately $100 million.
Positive Outlook
- Net sales and comparable sales are expected to be approximately flat compared to the prior year, reflecting growth from the Company’s strategic initiatives
- Gross Margin is expected to remain above 50%
- Adjusted Operating Margin is expected to be at least 9.0%
- Operating Cash Flow is expected to be at least $260 million
- Capital expenditures are expected to be approximately $100 million
Challenges Ahead
- anticipated pressure on consumer spending
- The Company does not provide a reconciliation for forward-looking non-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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