Financial Performance - Consolidated net sales for fiscal year 2023 decreased by $87.4 million, or 2.3%, to $3,728.1 million, impacted by foreign currency exchange rates by $9.2 million [177]. - Consolidated comparable sales for fiscal year 2023 increased by 1.4% compared to the prior fiscal year [177]. - Consolidated gross profit decreased by $21.0 million, or 1.1%, to $1,898.2 million, while gross margin increased by 60 basis points to 50.9% [177]. - Consolidated operating earnings for fiscal year 2023 decreased by $12.6 million, or 3.7%, to $325.0 million, with an operating margin decrease of 10 basis points to 8.7% [177]. - Net earnings for fiscal year 2023 decreased by $1.0 million, or 0.6%, to $184.6 million, with diluted earnings per share at $1.69 compared to $1.66 for the prior fiscal year [177]. Store Operations - The company completed the majority of its Distribution Center Consolidation and Store Optimization Plan, closing 330 SBS stores and 35 BSG stores [173]. - SBS's net sales decreased by $53.8 million, or 2.5%, primarily due to store closures, while BSG's net sales decreased by $33.6 million, or 2.1% [181]. - SBS's gross margin increased to 59.2%, while BSG's gross margin remained unchanged at 39.8% [181]. Expenses and Charges - Selling, General and Administrative (SG&A) expenses for SBS decreased by $15.8 million, or 1.7%, while BSG's SG&A expenses decreased by $0.7 million, or 0.1% [189][190]. - Restructuring charges for fiscal year 2023 amounted to $17.2 million, primarily from lease termination costs, compared to $27.6 million in fiscal year 2022 [193]. Liquidity and Capital Structure - As of September 30, 2023, the company had $605.6 million in liquidity, consisting of $482.6 million available for borrowings and $123.0 million in cash and cash equivalents [197]. - Working capital increased by $184.2 million to $648.7 million at September 30, 2023, compared to $464.5 million at the same date in 2022, driven by higher inventory balances and increased cash [198]. - The company repurchased approximately 1.5 million shares at a cost of $15.0 million in fiscal year 2023, with $580.8 million remaining under the share repurchase authorization [199]. - Outstanding debt as of September 30, 2023, was $1,078.0 million, including $680.0 million in 2025 Senior Notes and $398.0 million remaining on the term loan [205]. - The company had a current assets to current liabilities ratio of 2.12 to 1.00 at September 30, 2023, compared to 1.70 to 1.00 at September 30, 2022 [198]. Cash Flow and Investments - Net cash provided by operating activities for fiscal year 2023 was $249.3 million, an increase of $92.8 million compared to $156.5 million in fiscal year 2022 [200]. - Total capital expenditures for fiscal year 2023 were approximately $97.8 million, primarily for technology investments and store improvements [202]. - The net increase in cash and cash equivalents for fiscal year 2023 was $52.4 million, a significant improvement from a decrease of $330.4 million in fiscal year 2022 [200]. - The company entered into a seven-year term loan facility agreement for $400.0 million during fiscal year 2023, which was used to repay an existing term loan [204]. Goodwill and Impairment - As of September 30, 2023, goodwill allocated to the BSG reporting unit was $457.8 million, with an estimated fair value approximately 18% more than its carrying value [231]. - Goodwill allocated to the SBS reporting unit was $75.3 million as of September 30, 2023, with no impairment recorded for fiscal years 2023, 2022, or 2021 [232]. - For fiscal year 2022, an impairment loss of $24.8 million was recognized in connection with restructuring [227]. Foreign Exchange and Interest Rate Exposure - A 10% increase or decrease in exchange rates for the U.S. dollar versus foreign currencies would have impacted consolidated net sales by approximately 1.8% in fiscal year 2023 [237]. - A 1.0 percentage point interest rate increase would negatively impact annual interest expense and cash flows by $2.2 million [239]. - The company uses foreign exchange forward contracts to mitigate exposure to changes in foreign currency exchange rates [238]. Accounting and Risk Management - The company believes its allowance for doubtful accounts is sufficient to cover customer credit risks as of September 30, 2023 [241]. - No recent accounting pronouncements have been issued that will have a material impact on the business [234].

Financial Data and Key Metrics Changes - Fourth quarter consolidated net sales declined 4% to $921 million, impacted by 308 fewer stores, with consolidated comparable sales down 2% due to macro factors and consumer spending patterns [10][100] - Adjusted operating margin for the full year was 9.1%, with adjusted EBITDA of $459 million and strong free cash flow of $159 million [2][36] - Adjusted gross margin at Sally expanded 90 basis points to 59.2%, reflecting strong product margins and higher owned brand penetration [36][82] Business Line Data and Key Metrics Changes - In the Global Sally Beauty segment, Color sales were down 3% and Care was flat, while at Sally US and Canada, both Color and Care decreased by 6% [12][110] - BSG segment saw a 2% increase in the Color category, while Care declined 8% on a total sales basis [13] - Own brand penetration reached 34% of sales in fiscal 2023, with expectations to grow by approximately 200 basis points in fiscal 2024 [7][101] Market Data and Key Metrics Changes - Global Ecommerce sales were down 4% on a constant currency basis to $87 million, representing 9% of total net sales [10] - The company maintained a healthy gross margin profile above 50% and captured $50 million of expense savings under the DC and store optimization program [2][11] - Market data indicates that the company held its market share in the Color category while Care remained stable [84] Company Strategy and Development Direction - The company is focused on three core strategic initiatives: enhancing customer centricity, growing high-margin owned brands, and increasing operational efficiency [27][31] - Plans to scale to over 100 studio locations, with a significant portion being relocations or conversions, are in place [4] - The company aims to drive low to mid-single-digit top line growth and low double-digit operating margins in the long term [8][33] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer spending remains pressured, with customers becoming more frugal and seeking value [21][91] - The first quarter is expected to be the softest period of the year, reflecting the impact of store closures from the previous year [17][89] - The company anticipates that strategic initiatives will drive comparable sales growth of 200 to 300 basis points in fiscal 2024 [20][80] Other Important Information - The company completed a strategic asset acquisition of Goldwell of New York, adding five store locations and high-profile brands to its portfolio [3][39] - The balance sheet was strengthened with $123 million in cash and cash equivalents and no outstanding balance under the ABL [38][75] - The company plans to maintain capital expenditures at about $100 million for the year [41] Q&A Session All Questions and Answers Question: What is underpinning the flat to down guidance for the next quarter? - Management indicated that the guidance reflects macro-driven pressure on consumer spending and the impact of store closures from the previous year [90][116] Question: Do you think consumers are trading down in any categories? - Management observed that customers are searching for value and gravitating towards promotional offerings, but not necessarily trading down [48][97] Question: What are the expectations for the promotional landscape moving into the next fiscal year? - Management expects value to remain important in 2024, with continued promotional activity to attract customers [62][97] Question: How much cushion is there for the 9% margin guidance if comps are negative? - Management stated that the guidance considers the positive impact of strategic initiatives offset by macro factors affecting consumer spending [98][116] Question: Can you elaborate on the Walmart partnership? - The partnership involves launching the company's own brands on Walmart's marketplace to access new customer bases and expand digital sales [103][134]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: JUNE 30, 2023 -OR- ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 1-33145 SALLY BEAUTY HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identif ...

Sally Beauty Holdings (NYSE:SBH) Q3 2023 Earnings Conference Call August 3, 2023 8:30 AM ET Company Participants Denise Paulonis - President, Chief Executive Officer Marlo Cormier - Senior Vice President, Chief Financial Officer Jeff Harkins - Vice President, Investor Relations Conference Call Participants Joanna - Cowen Ashley Helgans - Jefferies Olivia Tong - Raymond James Operator Good morning everyone and welcome to Sally Beauty Holdings conference call to discuss the company’s fiscal 2023 third quart ...

Sally Beauty Holdings, Inc. (NYSE:SBH) Q2 2023 Results Conference Call May 4, 2023 8:30 AM ET Company Participants Jeff Harkins - VP, IR and Treasurer Denise Paulonis - President and CEO Marlo Cormier - CFO Conference Call Participants Oliver Chen - PD Cowen Korinne Wolfmeyer - Piper Sandler Ashley Helgans - Jefferies Olivia Tong - Raymond James Michael Kessler - Morgan Stanley Operator Good morning, everyone, and welcome to the Sally Beauty Holdings conference call to discuss the company’s fiscal 2023 seco ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ Washington, D.C. 20549 FORM 10-Q | -OR- | | | | | | | --- | --- | --- | --- | --- | --- | | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | | | ☐ | | Commission File No. 1-33145 | | | | | | | SALLY BEAUTY HOLDINGS, INC. | | | | | | | (Exact name of registrant as specified in its charter) | | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q | ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | | --- | --- | --- | | Commission File No. 1-33145 | | | | SALLY BEAUTY HOLDINGS, INC. | | | | (Exact name of registrant as specified in its charter) | | | | 36-2257936 | Delaware | | | (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) | | | | 3001 Colorado Boulevard | | | | 76210 ...

Sally Beauty Holdings, Inc. (NYSE:SBH) Q1 2023 Earnings Conference Call February 2, 2023 8:30 AM ET Company Participants Jeff Harkins - VP, IR & Strategic Planning Denise Paulonis - President, CEO & Director Marlo Cormier - SVP & CFO Conference Call Participants Oliver Chen - Cowen and Company Simeon Gutman - Morgan Stanley Olivia Tong - Raymond James & Associates Operator Good morning, ladies and gentlemen, and welcome to the Sally Beauty Holdings conference call to discuss the company's fiscal 2023 first ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED: SEPTEMBER 30, 2022 -OR- ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to __________________ Commission File No. 1-33145 SALLY BEAUTY HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 36-2257936 ( ...

Sally Beauty Holdings, Inc. (NYSE:SBH) Q4 2022 Earnings Conference Call November 10, 2022 8:30 AM ET Company Participants Jeff Harkins - VP, IR & Strategic Planning Denise Paulonis - President, CEO & Director Marlo Cormier - SVP & CFO Conference Call Participants Rupesh Parikh - Oppenheimer Oliver Chen - Cowen Olivia Tong - Raymond James Ashley Helgans - Jefferies Operator Good morning ladies and gentlemen and welcome to the Sally Beauty Holdings Conference Call to discuss the company's Fiscal 2022 Fourth Q ...