NYSE$SBH

Sally Beauty Holdings Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported strong sales, gross margin, and profit growth for the first quarter of fiscal year 2022.

Sally Beauty Holdings reported a solid first quarter in fiscal year 2022, marked by a 4.7% increase in consolidated net sales to $980 million and a comparable sales increase of 6.1%. The company's gross margin improved to 51.0%, and profitability saw significant improvement.

  • Consolidated net sales increased by 4.7% to $980 million, with a comparable sales increase of 6.1%.
  • Global e-commerce sales reached $81 million, accounting for 8.3% of net sales.
  • Gross margin improved to 51.0%, up 70 basis points compared to the prior year.
  • GAAP diluted net earnings per share increased to $0.60, and Adjusted Diluted Net Earnings Per Share increased to $0.63, a 26% increase compared to the prior year.

Headline financials

Total Revenue

$980M

Previous: $936M+4.7%
EPS (adj)

$0.63

Previous: $0.50+26.0%
Adjusted EBITDA Margin

14.8%

Previous: 14.3%+3.5%
Capital Expenditures

-$26.4M

Previous: -$15.5M-70.4%
Free Cash Flow

$42.4M

Previous: $41.7M+1.8%
Net Income

$68.8M

Previous: $57.2M+20.4%
Operating Income

$113M

Previous: $104M+8.1%
Gross Profit

$500M

Previous: $471M+6.2%
Cash & Equivalents

$298M

Previous: $538M-44.5%
Total Assets

$2.86B

Previous: $3B-4.8%
Stock-Based Comp

$3.96M

Previous: $2.89M+36.8%

Revenue & EPS history

Sally Beauty · Revenue · Quarterly

$980M

Q1 2022+4.7%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Sally Beauty · $980M total across 2 segments · Q1 2022

  • Sally Beauty Supply
    $562M+2.5%
  • Beauty Systems Group
    $419M+7.8%

Forward guidance

The Company is reiterating its full year guidance for fiscal year 2022.

Tailwinds

  • Net sales are expected to increase 3% to 4% compared to the prior year.
  • 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.
  • Focus on optimizing store portfolio.
  • Leveraging digital platform, driving loyalty and personalization.

Headwinds

  • 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.
  • Dynamic macro environment, including the recent omicron surge.
  • Supply chain challenges.
  • Planned marketing investments.
  • Increased expenses from international markets related to re-opening.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.9%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.8%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+24.8%

Q2 2021

Best reaction

-17.4%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-6.9%-15.2%-6.8%
Q1 2026+5.2%+1.0%-7.6%
Q4 2025-1.7%-0.2%+5.6%
Q2 2025+22.2%+12.2%+12.1%
Q1 2025+4.5%+2.0%-0.7%
Q4 2024+7.0%+4.4%-0.5%
Q3 2024+8.4%+19.4%+27.2%
Q2 2024-1.5%+5.5%+5.3%
Q1 2024+2.8%+5.0%+2.6%
Q4 2023+12.1%+14.8%+61.3%
Q3 2023-4.1%-1.6%-11.9%
Q2 2023-15.8%-18.7%-13.9%
Q1 2023+9.1%+8.5%-0.5%
Q4 2022+8.4%+1.8%-7.9%
Q3 2022-0.8%+0.7%+5.8%
Q2 2022-5.6%-10.9%-9.2%
Q1 2022-1.4%-2.6%-2.8%
Q4 2021+12.8%+14.3%+15.3%
Q3 2021-14.0%-13.0%-14.0%
Q2 2021+24.8%+17.0%-1.1%
Q1 2021-7.8%-2.3%+14.4%
Q4 2020-4.9%+3.2%+8.0%
Q3 2020-12.8%-8.8%-12.9%
Q2 2020+2.7%+6.0%+61.9%
Q1 2020-17.4%-16.8%-20.7%
Q4 2019+19.6%+19.9%+13.3%
Q3 2019+9.8%+7.9%-1.0%
Q2 2019-8.3%-6.6%-14.2%
Q1 2019-1.5%-3.3%-2.0%
Q4 2018+15.8%+10.4%+2.7%
Q3 2018-13.8%-13.2%-6.1%
Q2 2018-12.6%-11.6%-11.0%
Q1 2018+8.2%+8.2%+11.5%
Q4 2017-1.3%+1.4%+8.0%
Q3 2017+2.2%+3.6%-6.3%
Q2 2017+1.1%+3.9%-8.4%
Q1 2017-7.0%-5.2%-10.1%
Q4 2016-10.7%-10.0%-7.5%
Q3 2016-11.3%-11.4%-7.2%
Q2 2016-5.8%
Q1 2016+13.7%
Q4 2015+7.3%
Q3 2015-9.5%
Q2 2015+1.5%
Q1 2015+3.6%
Q4 2014+2.9%
Q3 2014+1.7%
Q2 2014-7.8%
Q1 2014+5.9%
Q4 2013-0.6%
Q3 2013-9.3%
Q2 2013+1.0%
Q1 2013+0.7%
Q4 2012-1.5%
Q3 2012+1.8%
Q2 2012-0.2%
Q4 2011+5.4%
Q1 2012-0.5%
Q3 2011+1.6%
Q2 2011+7.8%
Q1 2010+15.0%
Q1 2011+1.5%
Q4 2008+2.8%
Q2 2010+2.8%
Q4 2010+2.8%
Q3 2009-0.3%
Q3 2010-0.3%
Q4 2009-0.3%

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