NYSE$SBH

Sally Beauty Holdings Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Sally Beauty's Q2 2023 financial results were reported, showing an increase in consolidated comparable sales and a successful term loan refinancing.

Sally Beauty Holdings reported a 0.8% increase in consolidated net sales, reaching $919 million. Consolidated comparable sales increased by 5.7%, and global e-commerce sales grew by 9% to $87 million. The company's GAAP diluted EPS was $0.37, with an adjusted diluted EPS of $0.41. They also refinanced their $406 million term loan, extending the maturity to 2030.

  • Consolidated comparable sales increased by 5.7%.
  • Global e-commerce sales increased 9% to $87 million, representing 9.5% of net sales.
  • GAAP operating margin was 7.8%, with an adjusted operating margin of 8.3%.
  • Successfully refinanced $406 million term loan, extending the maturity to 2030.

Headline financials

Total Revenue

$919M

Previous: $911M+0.8%
EPS (adj)

$0.41

Previous: $0.47-12.8%
Adjusted Gross Margin

50.7%

Previous: 51.4%-1.4%
Capital Expenditures

-$42.2M

Previous: -$44.1M+4.4%
Free Cash Flow

-$1.32M

Previous: $2.7M-148.9%
Net Income

$40.9M

Previous: $46.8M-12.7%
Operating Income

$71.4M

Previous: $86.5M-17.4%
Gross Profit

$468M

Previous: $465M+0.6%
Cash & Equivalents

$61.6M

Previous: $227M-72.9%
Total Assets

$2.68B

Previous: $2.74B-2.5%
Stock-Based Comp

$3.84M

Previous: $2.03M+88.9%

Revenue & EPS history

Sally Beauty · Revenue · Quarterly

$919M

Q2 2023+0.8%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Sally Beauty · $919M total across 2 segments · Q2 2023

  • Sally Beauty Supply
    $530M+0.8%
  • Beauty Systems Group
    $388M+0.7%

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 related to the Company’s store optimization efforts, the expanded Regis distribution and new strategic initiatives
  • Gross margin is expected to remain above 50%
  • Adjusted Operating Margin is expected to be in the range of 8.5% and 9.5%, inclusive of investment in store labor as the Company focuses on elevating the expertise of its associates to drive growth in the coming years.

Headwinds

  • Net sales are expected to decline by low-single digits compared to the prior year, reflecting the unfavorable impact due to store closures from the Company’s store optimization efforts, net of expected sales recapture rates, and the anticipated unfavorable 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 Q2 2023

Historical avgQ2 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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