SBH Earnings Prediction
The chart below shows how SBH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SBH sees a +2.40% change in stock price 10 days leading up to the earnings, and a +3.32% change 10 days following the report. On the earnings day itself, the stock moves by +1.86%. This data can give you a slight idea of what to expect for the next quarter's release.
SBH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
935.03M
1.48%
-0.78%
Gross Margin
51.25%
1.20%
0.43%
Operating Margin
8.75%
6.06%
14.23%
Net Margin
5.14%
11.26%
28.50%
EPS
0.45
15.38%
25.00%
No Data Available
SBH Earnings Analysis
Sally Beauty Holdings, Inc. Corporation (SBH.N) Earnings Conference Call
Positive
Positive Comp Sales Growth: 4 consecutive quarters of positive comp sales in BSG segment and 2 consecutive quarters at Sally Beauty, contributing over 250 basis points to comparable sales in Q4.
Strong Sales and Profitability: Consolidated net sales of $3.7 billion with strong gross margins of 51% and adjusted operating income of $315 million, generating $247 million of cash flow from operations.
Operating Margin Improvement: Adjusted operating margin expanded by 80 basis points to 9.4% in Q4, reflecting effective cost control and improved profitability.
Customer Engagement Success: Sally U.S. and Canada generated 78% of sales from 16 million loyalty customers, indicating strong customer engagement and retention.
Share Repurchase Impact: $60 million of share repurchases throughout the year, significantly strengthening the balance sheet and returning value to shareholders.
Negative
Declining Customer Footfall: 1. Declining Comparable Transactions: Comparable transactions at Sally Beauty decreased by 0.6%, indicating a drop in customer footfall despite a 2.6% increase in comparable sales.
Gross Margin Decline: 2. Stagnant Gross Margin at BSG: The gross margin for the BSG segment fell by 30 basis points to 39%, primarily due to a lower product margin related to brand mix, despite lower distribution costs.
Rising SG&A Expenses: 3. Increased SG&A Expenses: Adjusted SG&A expenses rose by 1% year-over-year to $391 million, driven by higher labor and compensation-related expenses, which could pressure profitability.
Inventory Level Increase: 4. Inventory Growth: Year-end inventory levels increased by 6% to slightly over $1 billion, which may indicate potential overstock issues or slower sales moving forward.
Cautious Sales Outlook: 5. Conservative Sales Guidance: For fiscal 2025, the company expects consolidated net sales and comparable sales to be flat-to-up 2%, reflecting a cautious outlook amid tougher comparisons in the second half of the year.
SBH FAQs
How does SBH typically perform around its earnings report dates?
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SBH Earning Call Sentiment
Sally Beauty Holdings, Inc. (SBH) Q4 2024 Earnings Call Transcript
1.0x
00:00
00:00
SBH.N
1.01%Positive
The earnings call indicates strong financial performance with increased net sales, improved margins, and positive EPS growth. The company is executing strategic initiatives like brand refresh and e-commerce expansion, which are well-received by analysts. Share repurchase plans further boost investor confidence. Despite potential market expansion risks, the positive outlook on product categories and operational improvements suggest a favorable market reaction. Given the company's small-cap status, the stock is likely to react positively, with a potential increase in the 2% to 8% range over the next two weeks.
