Sally Beauty Holdings Reports Third Quarter 2024 Financial Results

authorIntellectia.AI1970-01-01
7
SBH.N
Illustration by Intellectia.AI

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.

Share