NYSE$SBH

Sally Beauty Holdings Inc. · Q1 2025 earnings

Q1 2025 earnings · · Before market open · Investor relations

Briefing

Started fiscal year 2025 with top line growth in both business segments and consolidated operating margin expansion.

Sally Beauty Holdings reported a solid start to fiscal year 2025, with consolidated net sales increasing by 0.7% to $938 million and comparable sales increasing by 1.6%. The company's GAAP operating margin expanded by 330 basis points to 10.7%, and adjusted operating margin expanded by 50 basis points to 8.4%.

  • Consolidated net sales increased 0.7% and consolidated comparable sales increased 1.6%.
  • GAAP operating margin expanded 330 basis points to 10.7%; adjusted operating margin expanded 50 basis points to 8.4%.
  • Cash flow from operations was $33 million and operating free cash flow was $57 million.
  • Beauty Systems Group announced a distribution partnership with K18.

Headline financials

Total Revenue

$938M

Previous: $931M+0.7%
EPS (adj)

$0.43

Previous: $0.35+22.9%
Consolidated Comparable Sales Growth

1.6%

No prior period
Sally Beauty Supply Comparable Sales Growth

1.7%

No prior period
Beauty Systems Group Comparable Sales Growth

1.4%

No prior period
Adjusted EBITDA Margin

11.7%

No prior period
GAAP Gross Margin

50.8%

No prior period
Adjusted Gross Margin

50.8%

No prior period
GAAP Operating Earnings

$100M

No prior period
GAAP Operating Margin

10.7%

No prior period
Adjusted Operating Earnings

$78.5M

No prior period
Adjusted Operating Margin

8.4%

No prior period
Capital Expenditures

-$20.1M

Previous: -$30.6M+34.3%
Net Income

$61M

Previous: $38.4M+58.9%
Operating Income

$100M

Previous: $69.1M+45.1%
Gross Profit

$477M

Previous: $467M+2.1%
R&D Expense

$0.00

No prior period

Revenue & EPS history

Sally Beauty · Revenue · Quarterly

$938M

Q1 2025+0.7%vs Q1 2024
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Sally Beauty · $921M total across 2 segments · Q4 2023

  • Sally Beauty Supply
    $525M-5.3%
  • Beauty Systems Group
    $397M-2.9%

Forward guidance

The Company is reiterating its full year guidance for both comparable sales and Adjusted Operating Margin, and is updating its consolidated net sales guidance to reflect the unfavorable impact from foreign exchange rates for fiscal year 2025.

Tailwinds

  • Comparable sales are expected to be approximately flat compared to the prior year.
  • Adjusted Operating Margin is expected to be in the range of 8.0% to 8.3%.
  • Comparable sales are expected to be flat to up 2% compared to the prior year.
  • Adjusted Operating Margin is expected to be in the range of 8.5% to 9.0%.
  • Consistent with prior guidance.

Headwinds

  • Consolidated net sales are expected to be approximately 100 basis points lower than comparable sales due to the expected unfavorable impact from foreign exchange rates.
  • Consolidated net sales are now expected to be approximately 100 basis points lower than comparable sales due to the expected unfavorable impact from foreign exchange rates.
  • Due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of the Company’s control or cannot be reasonably predicted.
  • 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.
  • Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

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 2025

Historical avgQ1 2025

+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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