Core Viewpoint - Sally Beauty Holdings, Inc. (SBH) is expected to show growth in both revenue and earnings for the fourth quarter of fiscal 2024, with revenue estimated at $935.7 million, reflecting a 1.6% increase year-over-year, and earnings per share projected at 48 cents, indicating a 14.3% increase from the previous year [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for fiscal 2024 revenue is $3.7 billion, which represents a slight decline of 0.3% compared to the previous year [2]. - The consensus estimate for fiscal 2024 earnings per share is $1.66, suggesting a decrease of 9.3% from the prior year [2]. - The company has a trailing four-quarter earnings surprise average of 0.5% [2]. Strategic Initiatives - Sally Beauty is focusing on three strategic initiatives to drive growth: enhancing customer-centric efforts, expanding high-margin owned brands, and fostering innovation while optimizing overall capabilities [3]. Marketing and Customer Engagement - The company is increasing its marketing efforts and offering differentiated products to enhance customer engagement, including the Happy Beauty Co. initiative, which is gaining traction [4]. - Sally Beauty's focus on market expansion, innovations, and digital enhancements is receiving positive consumer feedback, likely benefiting its performance in the upcoming quarter [4]. Sales and Margin Projections - For fiscal 2024, management anticipates nearly flat net sales and comparable sales compared to the previous year, with comparable sales growth estimated at approximately 0.2% [5]. - Gross margins are projected to be between 50.5% and 51%, with an adjusted operating margin forecasted at around 8.5% for the year [5]. Consumer Sentiment and Economic Challenges - Weak consumer sentiment poses a challenge for Sally Beauty, as customers are becoming more frugal and focused on necessity-driven purchases due to ongoing economic uncertainty and inflationary pressures [6]. - The company is experiencing increased selling, general and administrative (SG&A) expenses, driven by higher advertising and labor costs, which may pressure its results for the fiscal fourth quarter [7]. Earnings Prediction - Current models do not predict an earnings beat for Sally Beauty, as it carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00% [8].

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Core Insights - Sally Beauty Holdings, Inc. (SBH) is navigating a mix of opportunities and challenges in the beauty retail industry, focusing on strategic growth pillars to drive performance amidst weak consumer sentiment and rising costs [1][9][11] Strategic Growth Initiatives - SBH is centered around three key initiatives: enhancing customer-centricity, expanding high-margin brands, and driving innovation, with recent product launches resonating well with consumers [3][4] - The company’s store optimization program has improved productivity and profitability, contributing to a seamless omnichannel experience [4] - The Fuel for Growth plan is expected to deliver cumulative benefits of $120 million by 2026, enhancing margins and operational efficiency [4] Customer-Centric Strategies - SBH is acquiring new customers through marketing programs and strategic partnerships with major retailers like Amazon and Walmart, which are driving incremental sales [5][6] - The loyalty program is significant, with 78% of U.S. and Canadian sales coming from loyalty members in the fiscal third quarter [6] - The introduction of the Studio by Sally concept aims to provide a digital-first, DIY-centric shopping experience [6] New Retail Concepts - The launch of the Happy Beauty Co. concept targets value-conscious consumers with products priced under $10, showing positive reception in pilot locations [8] Challenges Facing the Company - SBH is experiencing challenges from weak consumer sentiment, with comparable transactions in the Sally Beauty Supply segment declining by 3% in the fiscal third quarter [9] - Rising operational costs, particularly in SG&A expenses, are squeezing margins, with adjusted EBITDA down 1.7% year-over-year and a quarterly adjusted EBITDA margin of 12.4% [10] - Currency fluctuations are also impacting international sales, complicating financial performance [10]

Core Insights - Sally Beauty is launching initiatives to celebrate Hispanic heritage through community-driven events and partnerships with artists and organizations [2][7][8] Group 1: Event Initiatives - The "Rooted in Success" event series will focus on Hispanic heritage programming in Miami starting in October 2024 [2][5] - A unique mural by Miami-based artist Disem305 will be unveiled on October 1, 2024, in Wynwood, Miami [4] - Sally Beauty ambassadors will distribute gift cards and products from Hispanic-owned brands from October 16 to October 20, 2024 [5] Group 2: Partnerships - Collaboration with the US Latinx Art Forum aims to amplify diverse voices and provide art-based learning opportunities within the Hispanic community [6][12] - The partnership with Disem305 highlights the intersection of art and beauty, showcasing the influence of the Hispanic community [4][7] Group 3: Corporate Commitment - Sally Beauty Holdings is extending Hispanic heritage programming internally through events led by the SOMOS Employee Resource Group [8] - The company emphasizes the importance of diversity and inclusion within its workforce and community initiatives [8] Group 4: Company Overview - Sally Beauty Holdings, Inc. is a leader in professional hair color and beauty supplies, offering a wide range of products through its various brands [10] - The company operates Sally Beauty Supply and Beauty Systems Group, providing products for both consumers and professionals [10]

Sally Beauty Holdings, Inc. (SBH) reported solid third-quarter fiscal 2024 results, as both the top and bottom lines beat the Zacks Consensus Estimate, and net sales increased year over year. The company witnessed positive comparable sales across both the Sally Beauty and Beauty Systems Group segments. At Sally Beauty, strategic initiatives such as better performance marketing, market expansions and digital enhancements were met with a positive consumer response, leading to growth in both new and returning ...

For the quarter ended June 2024, Sally Beauty (SBH) reported revenue of $942.34 million, up 1.2% over the same period last year. EPS came in at $0.45, compared to $0.49 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $931.39 million, representing a surprise of +1.18%. The company delivered an EPS surprise of +12.50%, with the consensus EPS estimate being $0.40. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

Sally Beauty (SBH) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 12.50%. A quarter ago, it was expected that this beauty products seller would post earnings of $0.39 per share when it actually produced earnings of $0.35, delivering a surprise of -10.26%. Over the last four quarters, ...

Financial Performance - Q3 consolidated net sales were $942 million, an increase of 1.2% compared to the prior year[2]. - Consolidated comparable sales increased by 1.5%, with positive trends in both Sally Beauty and Beauty Systems Group segments[2][3]. - Global e-commerce sales reached $92 million, representing 9.7% of net sales[2][4]. - GAAP gross margin was 51.0%, unchanged from the prior year, while adjusted gross margin also remained at 51.0%[5]. - GAAP operating earnings were $72 million, with an operating margin of 7.6%, compared to $90.1 million and 9.7% in the prior year[7]. - GAAP diluted net earnings per share were $0.36, down from $0.46 in the prior year; adjusted diluted net earnings per share were $0.45, compared to $0.49[8]. - Net sales for the three months ended June 30, 2024, were $942,340, a 1.2% increase from $931,008 in the same period last year[24]. - Gross profit for the nine months ended June 30, 2024, was $1,411,131, down 1.4% from $1,431,618 in the prior year[24]. - Operating earnings decreased by 20.4% to $71,770 for the three months ended June 30, 2024, compared to $90,125 in the same period last year[24]. - Net earnings for the three months ended June 30, 2024, were $37,724, a decrease of 25.8% from $50,821 in the prior year[24]. - The company reported a consolidated operating margin of 7.6% for the three months ended June 30, 2024, down from 9.7% in the same period last year[25]. - For the nine months ended June 30, 2024, net earnings were $105,358,000, down from $142,019,000 in the same period of 2023[31]. - Adjusted EBITDA for the three months ended June 30, 2024, was $116,780,000, a decrease of 1.7% from $118,752,000 in the same period of 2023[32]. - Basic earnings per share for the three months ended June 30, 2024, were $0.37, down from $0.47 in the same period of 2023[28]. Cash Flow and Capital Expenditures - Cash flow from operations for Q3 was $48 million, with operating free cash flow of $29 million[2][9]. - The company executed $10 million in share repurchases during the quarter[1]. - Capital expenditures for the year are expected to be approximately $100 million[12]. - Net cash provided by operating activities decreased by 9.8% to $47,895 million in 2024 from $53,123 million in 2023[33]. - Operating free cash flow (non-GAAP) declined by 8.8% to $28,746 million in 2024 compared to $31,508 million in 2023[33]. Expenses and Liabilities - Selling, general and administrative (SG&A) expenses for the three months ended June 30, 2024, were $408,730,000, representing 43.4% of sales, compared to 41.3% in the same period of 2023[28]. - SG&A expenses for the nine months ended June 30, 2024, were $1,210,303,000, representing 43.5% of sales, compared to 41.5% in the same period of 2023[31]. - Unallocated expenses increased by 31.3% to $61,538 for the three months ended June 30, 2024, compared to $46,857 in the same period last year[27]. - Interest expense for the three months ended June 30, 2024, was $20,707,000, an increase from $18,654,000 in the same period of 2023[32]. - The provision for income taxes for the nine months ended June 30, 2024, was $36,565,000, compared to $52,840,000 in the same period of 2023[31]. Store Performance and Sales Trends - Total number of stores decreased to 4,460 in 2024 from 4,477 in June 2023, a reduction of 17 stores[34]. - Comparable sales growth for SBS was 0.7% for the three months ended June 30, 2024, down from 3.0% in the same period of 2023, a decline of 230 basis points[35]. - BSG comparable sales improved to 2.6% for the three months ended June 30, 2024, compared to a decline of 2.4% in the same period of 2023, an increase of 500 basis points[35]. - Consolidated comparable sales growth was 1.5% for the three months ended June 30, 2024, up from 0.6% in 2023, an increase of 90 basis points[35]. - The number of BSG distributor sales consultants increased to 659 in 2024 from 650 in 2023, an increase of 9 consultants[34]. Guidance and Future Outlook - Full year fiscal 2024 guidance maintains expectations for net sales and comparable sales to be approximately flat compared to the prior year[12]. - Adjusted EBITDA margin for 2024 is 12.4%, down from 12.8% in 2023, reflecting a decrease of 40 basis points[33].

Sally Beauty Holdings, Inc. (SBH) is likely to see a bottom-line decline when it reports third-quarter fiscal 2024 earnings on Aug 8. The Zacks Consensus Estimate for quarterly earnings has moved down by a cent in the past 30 days to 40 cents per share. The figure slumped 18.4% from the year-ago quarter's reported figure. The company's top line is likely to increase year over year. The consensus mark for quarterly revenues is pegged at $931.4 million, indicating a slight increase from the prior-year quarter ...

Wall Street analysts forecast that Sally Beauty (SBH) will report quarterly earnings of $0.40 per share in its upcoming release, pointing to a year-over-year decline of 18.4%. It is anticipated that revenues will amount to $931.39 million, exhibiting no change compared to the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimate ...