NYSE$SBH

Sally Beauty Holdings Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported a decrease in net sales and comparable sales, while gross margin and operating earnings increased due to prior year's non-cash inventory write-down

Sally Beauty Holdings reported a 4.3% decrease in consolidated net sales to $921 million, with a 1.6% decline in consolidated comparable sales. GAAP gross margin increased by 240 basis points to 50.6%, and GAAP operating earnings rose to $77 million. The company generated $117 million in cash flow from operations and $90 million in operating free cash flow.

  • Generated Q4 Cash Flow from Operations of $117 Million and Operating Free Cash Flow of $90 Million
  • Beauty Systems Group Announces Strategic Acquisition of Assets from Goldwell of New York
  • Executed $15 Million in Share Repurchases and Repaid the Outstanding Balance of $16 Million on ABL Credit Facility
  • Provides Fiscal 2024 Guidance

Headline financials

Total Revenue

$921M

Previous: $962M-4.3%
EPS (adj)

$0.42

Previous: $0.50-16.0%
Capital Expenditures

$26.9M

Previous: $32M-15.8%
Free Cash Flow

$90M

Previous: $75.3M+19.6%
Net Income

$42.6M

Previous: $21.3M+99.6%
Operating Income

$77M

Previous: $39M+97.4%
Gross Profit

$467M

Previous: $464M+0.7%
Cash & Equivalents

$123M

Previous: $71M+73.2%
Total Assets

$2.73B

Previous: $2.58B+5.8%
Stock-Based Comp

$3.34M

Previous: $1.84M+81.4%

Revenue & EPS history

Sally Beauty · Revenue · Quarterly

$921M

Q4 2023-4.3%vs Q4 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Sally Beauty · $921M total across 2 segments · Q4 2023

  • Sally Beauty Supply
    $525M-5.3%
  • Beauty Systems Group
    $397M-2.9%

Forward guidance

The Company is providing the following guidance for the full fiscal year 2024: Net sales and comparable sales are expected to be approximately flat compared to the prior year, reflecting growth from the Company’s strategic initiatives, offset by anticipated pressure on consumer spending; Gross Margin is expected to remain above 50%; Adjusted Operating Margin is expected to be at least 9.0%; Operating Cash Flow is expected to be at least $260 million; and Capital expenditures are expected to be approximately $100 million.

Tailwinds

  • Net sales and comparable sales are expected to be approximately flat compared to the prior year, reflecting growth from the Company’s strategic initiatives
  • Gross Margin is expected to remain above 50%
  • Adjusted Operating Margin is expected to be at least 9.0%
  • Operating Cash Flow is expected to be at least $260 million
  • Capital expenditures are expected to be approximately $100 million

Headwinds

  • anticipated pressure on consumer spending
  • The Company does not provide a reconciliation for forward-looking non-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort.
  • This is due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of the Company’s control or cannot be reasonably predicted.
  • For the same reasons, the Company is unable to address the probable significance of the unavailable information.
  • Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

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 2023

Historical avgQ4 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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