NYSE$SBH

Sally Beauty Holdings Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported second quarter fiscal 2022 results.

Sally Beauty Holdings reported a decrease in consolidated net sales by 1.6% to $911 million, while comparable sales increased by 0.2%. GAAP diluted EPS was $0.42, and adjusted diluted EPS was $0.47. The company experienced greater than expected pressure on the top line due to supply chain and inflationary challenges.

  • Consolidated net sales of $911 million, a decrease of 1.6% compared to the prior year, with a comparable sales increase of 0.2%.
  • Global e-commerce sales of $81 million, representing 8.9% of net sales.
  • GAAP gross margin up 70 basis points to 51.1% and Adjusted Gross Margin up 20 basis points to 51.4%.
  • GAAP diluted net earnings per share of $0.42 and Adjusted Diluted Net Earnings Per Share of $0.47.

Headline financials

Total Revenue

$911M

Previous: $926M-1.6%
EPS (adj)

$0.47

Previous: $0.57-17.5%
Adjusted Gross Margin

51.4%

No prior period
Adjusted Operating Margin

9.9%

Previous: 12.1%-18.2%
Capital Expenditures

-$44.1M

Previous: -$27.1M-62.8%
Free Cash Flow

$2.7M

Previous: $11.2M-75.9%
Net Income

$46.8M

Previous: $38.3M+22.2%
Operating Income

$86.5M

Previous: $75.5M+14.5%
Gross Profit

$465M

Previous: $467M-0.4%
Cash & Equivalents

$227M

Previous: $408M-44.3%
Total Assets

$2.74B

Previous: $2.91B-5.7%
Stock-Based Comp

$2.03M

Previous: $2.65M-23.3%

Revenue & EPS history

Sally Beauty · Revenue · Quarterly

$911M

Q2 2022-1.6%vs Q2 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Sally Beauty · $911M total across 2 segments · Q2 2022

  • Sally Beauty Supply
    $526M-3.1%
  • Beauty Systems Group
    $386M+0.5%

Forward guidance

Given the dynamic macro environment including the impact of inflationary pressures and intensified supply chain challenges, the Company is revising its full year guidance for fiscal year 2022.

Tailwinds

  • Gross margin is expected to expand by 40 to 60 basis points compared to the prior year.

Headwinds

  • Net sales are expected to be flat to down 2% compared to the prior year.
  • 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.

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 Q2 2022

Historical avgQ2 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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