NYSE$SBH

Sally Beauty Holdings Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

EPS grew and same store sales were positive for the fourth quarter.

Sally Beauty Holdings, Inc. reported positive same store sales and significant gross margin expansion in Q4. The company ended the year with strong liquidity, including $131 million in operating free cash flow and a strengthened balance sheet with over $500 million of cash after reducing debt levels by $445 million.

  • GAAP Diluted EPS Grew to $0.62, increasing 6.9% compared to prior year.
  • Adjusted Diluted EPS Grew to $0.63, increasing 8.6% compared to prior year.
  • Positive Same Store Sales Growth of +1.3% for Enterprise and +3.7% for Sally Beauty U.S. and Canada.
  • E-commerce Sales Growth Continues: +69% Globally Compared to Prior Year.

Headline financials

Total Revenue

$958M

Previous: $966M-0.8%
EPS (adj)

$0.63

Previous: $0.58+8.6%
Consolidated Comparable Sales Growth

1.3%

Previous: 1.1%+18.2%
Capital Expenditures

$21.1M

Previous: $41M-48.5%
Free Cash Flow

$131M

Previous: $75.6M+73.8%
Net Income

$70.2M

Previous: $69M+1.7%
Operating Income

$120M

Previous: $116M+3.1%
Gross Profit

$489M

Previous: $479M+2.1%
Cash & Equivalents

$514M

Previous: $71.5M+619.1%
Total Assets

$2.9B

Previous: $2.1B+38.0%
Stock-Based Comp

-$668K

Previous: $1.45M-146.0%

Revenue & EPS history

Sally Beauty · Revenue · Quarterly

$958M

Q4 2020-0.8%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Sally Beauty · $958M total across 2 segments · Q4 2020

  • Sally Beauty Supply
    $577M+0.8%
  • Beauty Systems Group
    $381M-3.3%

Forward guidance

The Company will provide perspective on its outlook for the coming quarters during its earnings conference call. The Company will not be providing formal guidance at this time.

Tailwinds

  • Capitalizing on strong consumer interest in DIY hair color.
  • Building and refining our digital customer experience including the addition of ‘Buy Online / Pickup In-Store’.
  • Growing our new Private Label Rewards Credit Card Program.
  • Expanding the rollout of JDA to the rest of our distribution centers.
  • Growing our partnerships with Female-owned and Black-owned brands.

Headwinds

  • Uncertainty remains as to the duration and severity of the pandemic.
  • Maintaining stringent financial discipline.
  • Maintaining ample liquidity.
  • Completing our transformation plan.
  • Navigating past COVID-19.

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 Q4 2020

Historical avgQ4 2020

+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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