NYSE$SBH

Sally Beauty Holdings Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Sally Beauty Holdings reported first quarter fiscal 2023 results, with consolidated comparable sales increasing and successful implementation of distribution center consolidation and store optimization plan.

Sally Beauty Holdings reported a decrease in net sales by 2.4% to $957.1 million compared to the prior year, but consolidated comparable sales increased by 1.1%. The company successfully implemented its distribution center consolidation and store optimization plan. GAAP diluted EPS was $0.46, and Adjusted Diluted EPS was $0.52.

  • Consolidated comparable sales increased 1.1% with a two-year stack increase of 7.2%.
  • GAAP operating margin was 9.0%, while adjusted operating margin reached 10.0%.
  • GAAP diluted EPS stood at $0.46, with adjusted diluted EPS at $0.52.
  • Successfully implemented distribution center consolidation and store optimization plan.

Headline financials

Total Revenue

$957M

Previous: $980M-2.4%
EPS (adj)

$0.52

Previous: $0.63-17.5%
Adjusted EBITDA Margin

13.1%

Previous: 14.8%-11.5%
Adjusted Gross Margin

50.8%

No prior period
Adjusted Operating Margin

10.0%

No prior period
Capital Expenditures

-$25M

Previous: -$26.4M+5.2%
Free Cash Flow

$25.3M

Previous: $42.4M-40.3%
Net Income

$50.3M

Previous: $68.8M-26.9%
Operating Income

$86.6M

Previous: $113M-23.2%
Gross Profit

$489M

Previous: $500M-2.3%
Cash & Equivalents

$99.1M

Previous: $298M-66.8%
Total Assets

$2.67B

Previous: $2.86B-6.6%
Stock-Based Comp

$5.14M

Previous: $3.96M+29.7%

Revenue & EPS history

Sally Beauty · Revenue · Quarterly

$957M

Q1 2023-2.4%vs Q1 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Sally Beauty · $957M total across 2 segments · Q1 2023

  • Sally Beauty Supply
    $549M-2.1%
  • Beauty Systems Group
    $408M-2.7%

Forward guidance

The Company is maintaining the following guidance for full fiscal year 2023:

Tailwinds

  • 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.

Headwinds

  • Net sales are expected to decline by low-single digits compared to the prior year. This reflects approximately 150 to 200 basis points of unfavorable impact due to store closures net of expected sales recapture rates from our optimization efforts, and approximately 150 basis points of anticipated impact from foreign exchange headwinds.

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 2023

Historical avgQ1 2023

+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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