NYSE$SBH

Sally Beauty Holdings Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Sally Beauty Holdings reported third quarter fiscal 2022 results.

Sally Beauty Holdings reported a decrease in consolidated net sales by 6.0% to $961 million, with a comparable sales decrease of 3.6%. Despite these challenges, the company maintained a healthy gross margin of 51% and an adjusted operating margin of 10.5%. The company completed a full repayment of $300 million of 8.75% senior secured notes.

  • Consolidated net sales decreased by 6.0% to $961 million, with a comparable sales decrease of 3.6%.
  • Global e-commerce sales reached $81 million, representing 8.4% of net sales.
  • Gross margin increased by 70 basis points to 51.0%.
  • GAAP diluted net earnings per share was $0.43, and adjusted diluted net earnings per share was $0.55.

Headline financials

Total Revenue

$961M

Previous: $1.02B-6.0%
EPS (adj)

$0.55

Previous: $0.68-19.1%
Adjusted Operating Margin

10.5%

No prior period
Capital Expenditures

-$67.2M

Previous: -$44.9M-49.8%
Free Cash Flow

-$20.7M

Previous: $31.3M-166.0%
Net Income

$46.6M

Previous: $76.2M-38.9%
Operating Income

$99.2M

Previous: $127M-22.1%
Gross Profit

$490M

Previous: $514M-4.7%
Cash & Equivalents

$101M

Previous: $270M-62.5%
Total Assets

$2.69B

Previous: $2.78B-3.3%
Stock-Based Comp

$2.11M

Previous: $2.62M-19.3%

Revenue & EPS history

Sally Beauty · Revenue · Quarterly

$961M

Q3 2022-6%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Sally Beauty · $961M total across 2 segments · Q3 2022

  • Sally Beauty Supply
    $552M-8.5%
  • Beauty Systems Group
    $410M-2.4%

Forward guidance

The Company is updating its full year guidance to reflect continued inflationary pressures and the unfavorable impact from foreign currency exchange rates.

Tailwinds

  • GAAP gross margin is expected to expand by approximately 70 basis points compared to the prior year.
  • Adjusted Gross Margin is expected to expand by approximately 50 basis points compared to the prior year.

Headwinds

  • Net sales are expected to decline by approximately 2% compared to the prior year. This includes an unfavorable impact from foreign currency exchange rates of approximately 70 basis points on full year guidance and reflects incremental impact in the third quarter and anticipated impact in the fourth quarter compared to prior net sales guidance.
  • Net store count is expected to decrease by 90 stores, reflecting the Company’s focus on optimizing its store portfolio.
  • GAAP operating margin is expected to be approximately 10.3%.
  • Adjusted Operating Margin is expected to be approximately 10.5%.

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 Q3 2022

Historical avgQ3 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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