Sally Beauty Holdings Reports Third Quarter 2024 Financial Results
Sally Beauty Holdings Reports Third Quarter 2024 Financial Results
Sally Beauty Holdings, Inc. (NYSE:SBH), the global leader in professional hair color, reported its financial results for the fiscal third quarter ending June 30, 2024.
Key Financial Metrics
Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates (Q3 2024) |
---|---|---|---|---|
Total Revenue | $942 million | $930 million | +1.2% | $931.68 million |
Earnings Per Share (GAAP) | $0.36 | $0.46 | -21.7% | $0.40 |
Earnings Per Share (Adj) | $0.45 | $0.49 | -8.2% | N/A |
The financial performance of Sally Beauty Holdings for the third quarter of 2024 demonstrated modest growth in revenue compared to the prior year. Despite falling short of consensus estimates for EPS, the company maintained a steady performance, buoyed by improved operations within its key business segments.
Segment Revenue Performance
Segment | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change | Q3 2024 Comparable Sales |
---|---|---|---|---|
Sally Beauty Supply | $536.5 million | $534.9 million | +0.3% | +0.7% |
Beauty Systems Group | $405.8 million | $396.1 million | +2.5% | +2.6% |
Both major segments of Sally Beauty Holdings showed positive revenue growth compared to the same quarter last year. The Sally Beauty Supply segment had a slight increase, while Beauty Systems Group saw a more substantial rise in sales driven by expanded distribution and product innovations.
Operational Data
Metric | Q3 2024 |
---|---|
Global E-commerce Sales | $92 million |
Cash Flow from Operations | $48 million |
Share Repurchases | $10 million |
GAAP Operating Earnings | $72 million |
Adjusted Operating Earnings | $84 million |
GAAP Gross Margin | 51.0% |
Adjusted Gross Margin | 51.0% |
GAAP Operating Margin | 7.6% |
Adjusted Operating Margin | 8.9% |
Executive Commentary
Denise Paulonis, President and CEO of Sally Beauty Holdings, expressed satisfaction with the quarter's performance, highlighting the positive response to strategic initiatives in the Sally Beauty segment and consistent growth in the Beauty Systems Group. Paulonis emphasized the ongoing focus on digital enhancements, marketing efforts, and the company's commitment to long-term growth and shareholder value.
Share Repurchase
During the third quarter, Sally Beauty Holdings executed share repurchases amounting to $10 million.
Forward Guidance
Sally Beauty Holdings reaffirmed its full-year fiscal 2024 guidance, anticipating flat net sales and comparable sales relative to the previous year, a gross margin between 50.5% to 51.0%, and an adjusted operating margin around 8.5%. Operating cash flow is expected to reach approximately $240 million with capital expenditures estimated at $100 million.
Stock Price Movement
Following the earnings release, the stock price of Sally Beauty Holdings experienced a slight decline of -0.053%, reflecting a marginally negative market reaction.
For further details, the company will host a conference call at 7:30 a.m. Central Time today, August 8, 2024, accessible via its investor relations website.
The provided data has been meticulously compiled and cross-checked to ensure accuracy.
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