NYSE$SBH

Sally Beauty Holdings Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced fourth quarter and full year fiscal 2022 results, reporting adjusted diluted EPS of $0.50 and adjusted operating margin of 8.7%.

Sally Beauty Holdings reported Q4 2022 results with net sales of $962 million, a decrease of 2.8% compared to the prior year, and comparable sales flat to the prior year. GAAP diluted EPS was $0.20, while adjusted diluted EPS was $0.50. The company announced a distribution center consolidation and acceleration of store optimization plan, outlining new strategic initiatives and long-term outlook, and providing fiscal 2023 guidance.

  • Consolidated net sales decreased by 2.8% to $962 million, with comparable sales flat to the prior year.
  • Global e-commerce sales accounted for 9.3% of net sales, totaling $90 million.
  • GAAP gross margin decreased to 48.2%, while adjusted gross margin decreased to 50.1%.
  • GAAP diluted net earnings per share was $0.20, and adjusted diluted net earnings per share was $0.50.

Headline financials

Total Revenue

$962M

Previous: $990M-2.8%
EPS (adj)

$0.50

Previous: $0.64-21.9%
Capital Expenditures

$32M

Previous: $29M+10.3%
Free Cash Flow

$75.3M

Previous: $135M-44.4%
Net Income

$21.3M

Previous: $68.1M-68.7%
Operating Income

$39M

Previous: $111M-64.9%
Gross Profit

$464M

Previous: $501M-7.5%
Cash & Equivalents

$71M

Previous: $401M-82.3%
Total Assets

$2.58B

Previous: $2.85B-9.6%
Stock-Based Comp

$1.84M

Previous: $3.5M-47.4%

Revenue & EPS history

Sally Beauty · Revenue · Quarterly

$962M

Q4 2022-2.8%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Sally Beauty · $962M total across 2 segments · Q4 2022

  • Sally Beauty Supply
    $554M-5.4%
  • Beauty Systems Group
    $408M+0.9%

Forward guidance

The Company is providing the following guidance for the full fiscal year 2023: 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, our expanded Regis distribution and new strategic initiatives; Net sales are expected to decline by low-single digits compared to the prior year; Gross Margin is expected to remain above 50%; and Adjusted Operating Margin is expected to be in the range of 8.5% and 9.5%, inclusive of investment in our store labor as we lean in to elevating the expertise of our associates to drive our growth in the coming years.

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
  • Expanded Regis distribution
  • New strategic initiatives

Headwinds

  • Net sales are expected to decline by low-single digits compared to the prior year. This reflects approximately 150 to 200 basis points of net unfavorable impact due to store closures and expected sales recapture rates from our optimization efforts, and approximately 150 basis points of anticipated impact from foreign exchange headwinds
  • Net sales are expected to decline by low-single digits compared to the prior year.
  • 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 our store labor as we lean in to elevating the expertise of our associates to drive our growth in the coming years.

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 2022

Historical avgQ4 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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