Financial Data and Key Metrics Changes - For Q4 2025, the company reported comparable sales growth of 1.3%, gross margin expansion of 100 basis points to 52.2%, adjusted operating margin of 9.4%, and adjusted diluted earnings per share increased by 10% to $0.55 [4][22] - For the full year, the company achieved $3.7 billion in revenue, with adjusted diluted earnings per share at $1.90, representing a 12% growth compared to the previous year [4][22] Business Line Data and Key Metrics Changes - In the Sally segment, net sales increased by 1.4% to $542 million, with comparable sales up 1.2% and e-commerce sales growing by 23% to $47 million [25][26] - In the BSG segment, net sales increased by 1.1% to $406 million, with comparable sales up 1.4% and e-commerce sales increasing by 8% to $58 million [27] Market Data and Key Metrics Changes - Global e-commerce sales increased by 15% to $105 million, representing 11% of total net sales [23] - The company maintained a strong margin profile, with gross margin expanding 100 basis points to 52.2% in Q4, driven by the benefits of the Fuel for Growth program [23][24] Company Strategy and Development Direction - The company is focused on four key growth drivers: understanding and activating the customer, unlocking digital value, differentiating with product assortment and innovation, and accelerating new growth pathways [7][21] - The Sally Ignited initiative aims to transform the business into a modern beauty powerhouse, with plans for 50 additional store refreshes in fiscal 2026 [16][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the Sally customer base and the stability of the stylist business, despite some pressure on lower-income consumers due to government shutdowns [40][75] - The company anticipates a strong holiday season and expects to leverage its strategic initiatives to drive growth in fiscal 2026 [41][75] Other Important Information - The company generated strong cash flow from operations of $275 million, which was used for debt repayment and share repurchases [5][28] - The Fuel for Growth program is expected to deliver cumulative run rate savings of approximately $120 million by the end of fiscal 2026 [20][25] Q&A Session Summary Question: Key factors driving performance in each division - Management highlighted the strength of color in both businesses, with color sales up 7% overall, and noted the positive impact of marketplaces and customer activation initiatives [32][35] Question: Consumer environment and comp guidance - Management noted that the Sally customer remains resilient, with a focus on core color categories, while acknowledging some pressure on lower-income consumers due to government shutdowns [39][40] Question: Update on store remodel program - The company has completed 30 store refreshes under the Sally Ignited initiative, with plans for 50 more in fiscal 2026, showing positive customer engagement and sales metrics [47][50] Question: Long-term outlook for EBIT dollar growth - Management expressed confidence in achieving long-term EBIT growth through continued optimization of the Fuel for Growth program and increasing own brand penetration [59][60] Question: Expectations for category growth - Management anticipates continued growth in color, care, and nails, with new category expansions into skin and spa, and a focus on enhancing customer experience [66][67]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported comparable sales growth of 1.3%, with a gross margin expansion of 100 basis points to 52.2% and adjusted operating margin of 9.4% [5][22] - Full year revenue reached $3.7 billion, with adjusted diluted earnings per share increasing by 12% to $1.90 [5][25] - The company generated strong cash flow from operations of $275 million, with over $50 million returned to shareholders through share repurchases [6][29] Business Line Data and Key Metrics Changes - In the Sally segment, net sales increased by 1.4% to $542 million, with comparable sales up 1.2% [25][26] - The BSG segment saw net sales increase by 1.1% to $406 million, with comparable sales up 1.4% [27][28] - E-commerce sales for Sally US and Canada grew by 34%, while global e-commerce sales increased by 15% to $105 million [12][23] Market Data and Key Metrics Changes - The company maintained a strong margin profile, with gross margin expanding 100 basis points to 52.2% in Q4, driven by the Fuel for Growth program [22][23] - The company expects to maintain a healthy margin profile in fiscal 2026, offsetting potential cost increases through vendor partnerships and sourcing optimization [23][24] Company Strategy and Development Direction - The company is focused on four key growth drivers: understanding and activating the customer, unlocking digital value, differentiating with product assortment, and accelerating new growth pathways [9][21] - The Sally Ignited initiative aims to enhance the customer experience through physical and digital refreshes, category expansion, and immersive experiences [17][18] - The company plans to refresh up to 1,500 stores, with 30 completed by the end of fiscal 2025 [18][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a complex environment, highlighting resilient customer behavior and strong performance in the color category [37][56] - The company anticipates continued growth in the core color category, with additional opportunities in care, nails, and new categories like skin and spa [50][61] - Management remains cautious about the impact of government shutdowns on lower-income consumers but expects a rebound as conditions improve [56][57] Other Important Information - The company generated cumulative run rate benefits of $74 million from the Fuel for Growth program, with expectations to reach $120 million by the end of fiscal 2026 [20][25] - The company is committed to returning approximately 50% of free cash flow to shareholders through share repurchases [21][30] Q&A Session Summary Question: Key factors driving performance in Q4 - Management noted strong color performance in both segments, with marketplaces outperforming and innovation driving positive sales growth in care [32][33] Question: Consumer environment and comp guidance - Management highlighted resilient customer behavior, particularly in the color category, while noting some pressure on lower-income consumers due to government shutdowns [36][37] Question: Update on store remodel program - The company has completed 30 store refreshes under the Sally Ignited initiative, with plans for 50 more in fiscal 2026 [40][42] Question: Long-term outlook for EBIT growth - Management expressed confidence in achieving long-term EBIT growth through top-line growth drivers and continued optimization from the Fuel for Growth program [47][48] Question: Expectations for category growth - Management anticipates continued growth in color, care, and nails, with new opportunities in skin and spa and other categories [50][61]

Core Insights - Sally Beauty reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.49 per share, and showing an increase from $0.50 per share a year ago, resulting in an earnings surprise of +12.24% [1] - The company achieved revenues of $947.08 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.51% and reflecting a year-over-year increase from $935.03 million [2] Earnings Performance - Over the last four quarters, Sally Beauty has surpassed consensus EPS estimates three times, indicating a strong performance trend [2] - The company had a previous earnings surprise of +21.43% when it reported earnings of $0.51 per share against an expectation of $0.42 per share [1] Stock Performance - Since the beginning of the year, Sally Beauty shares have increased by approximately 40.5%, significantly outperforming the S&P 500's gain of 16.5% [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, with current consensus EPS estimates at $0.49 for the upcoming quarter and $2.01 for the current fiscal year [7] - The Zacks Rank for Sally Beauty is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Retail - Miscellaneous industry, to which Sally Beauty belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Sally Beauty Holdings, Inc. INVESTOR RELATIONS PRESENTATION as of November 13, 2025 Statements in this presentation that are not purely historical facts or that depend upon future events may be forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward- looking statements, as that term is defined in the Private Securities Litigation Reform Aot of 1995, can be identified by the use of forw ...

Financial Performance - Q4 consolidated net sales increased by 1.3% to $947 million, with consolidated comparable sales also up by 1.3%[5] - Q4 GAAP diluted EPS rose by 7% to $0.49, while adjusted diluted EPS increased by 10% to $0.55[5] - Full year consolidated net sales totaled $3.70 billion, a decrease of 0.4% compared to the prior year, with a 0.3% increase in comparable sales[10] - Net earnings for the three months ended September 30, 2025, were $49,931, reflecting a 3.9% increase from $48,056 in 2024[35] - Net earnings for the twelve months ended September 30, 2025, increased by 27.7% to $195,878,000 compared to $153,414,000 for the same period in 2024[47] - Adjusted EBITDA for the twelve months ended September 30, 2025, was $447,619,000, a 1.4% increase from $441,519,000 in 2024[47] Cash Flow and Expenses - Full year cash flow from operations was $275 million, with free cash flow of $216 million[10] - Free cash flow for the twelve months ended September 30, 2025, rose by 48.8% to $216,260,000 compared to $145,363,000 in 2024[47] - Interest expense decreased by 15.7% to $64,393,000 in 2025 from $76,408,000 in 2024[47] - Selling, general and administrative expenses as a percentage of sales were 42.8% in 2025, slightly improved from 43.3% in 2024[45] Guidance and Projections - Fiscal 2026 guidance includes consolidated net sales projected between $3.71 billion and $3.77 billion, with adjusted diluted EPS expected to be between $2.00 and $2.10[12] - The company plans capital expenditures of approximately $100 million for fiscal 2026[12] - Long-term targets include annual consolidated net sales growth of 1% to 3% and adjusted diluted EPS growth of over 10%[14] Operational Metrics - Global e-commerce sales reached $105 million in Q4, representing 11.1% of net sales[6] - The company reported a GAAP gross margin expansion of 100 basis points to 52.2% in Q4[6] - Consolidated gross margin improved to 51.6% in 2025 from 50.9% in 2024[45] - Gross profit increased by 3.1% to $494,106 for the three months ended September 30, 2025, compared to $479,201 in 2024[35] - Operating earnings decreased by 2.8% to $79,944 for the three months ended September 30, 2025, down from $82,266 in 2024[35] - Consolidated operating margin for the three months ended September 30, 2025, was 8.4%, down from 8.8% in 2024[39] Assets and Equity - Total assets as of September 30, 2025, were $2,871,096, an increase from $2,792,899 in 2024[37] - Total stockholders' equity rose to $794,207 as of September 30, 2025, compared to $628,535 in 2024[37] Store and Segment Performance - The total number of stores decreased to 4,422 as of September 30, 2025, down from 4,460 in 2024[49] - Comparable sales growth for Sally stores was 1.2% for the three months ended September 30, 2025, compared to 2.6% in 2024[50] - Segment operating earnings for Sally Beauty Supply decreased by 7.3% to $86,183 for the three months ended September 30, 2025, while Beauty Systems Group increased by 16.5% to $51,286[39] Tax and Debt - The effective tax rate decreased to 23.2% for the three months ended September 30, 2025, compared to 25.4% in 2024[35] - The net debt leverage ratio at the end of fiscal 2025 was 1.6x, with cash and cash equivalents of $149 million[9] Other Notable Events - The company reported a gain of $26.6 million from the sale of its headquarters in Denton, TX, contributing to its financial performance[45] - The number of BSG salon business consultants decreased to 591 in 2025 from 652 in 2024[49]

Core Insights - The company reported fourth quarter results that exceeded expectations, with solid topline growth and healthy gross margins leading to a 10% adjusted EPS growth and robust free cash flow [2][6] - Full year results showed a 40 basis points adjusted operating margin expansion and a 12% adjusted EPS growth, while cash was deployed for growth investments, balance sheet strengthening, and shareholder returns [2][6] - The company expressed confidence in its fiscal 2026 guidance and long-term financial targets, supported by resilient customers and strategic initiatives [2] Fiscal 2025 Fourth Quarter Summary - Consolidated net sales reached $947 million, a 1.3% increase year-over-year, with comparable sales also up 1.3% [6][7] - GAAP diluted EPS increased by 7% to $0.49, while adjusted diluted EPS rose by 10% to $0.55 [6][7] - Cash flow from operations was $121 million, with free cash flow totaling $78 million [6][8] Fiscal 2025 Full Year Summary - Total consolidated net sales for the year were $3.70 billion, a slight decrease of 0.4% compared to the previous year [6][7] - Full year GAAP diluted EPS increased by 32% to $1.89, and adjusted diluted EPS grew by 12% to $1.90 [6][7] - Cash flow from operations for the year was $275 million, with free cash flow of $216 million [6][7] Balance Sheet and Cash Flow - As of September 30, 2025, the company had cash and cash equivalents of $149 million and no outstanding borrowings under its revolving credit line [5][8] - Inventory decreased by 4.7% year-over-year to $988 million [5] Segment Performance - In Q4, Sally Beauty segment net sales were $541.6 million, up 1.4%, while Beauty Systems Group net sales were $405.5 million, an increase of 1.1% [9][31] - The gross margin for Sally Beauty improved by 90 basis points to 61.3%, while Beauty Systems Group's gross margin expanded by 100 basis points to 40.0% [9][31] Fiscal 2026 Guidance - The company provided guidance for consolidated net sales between $3.71 billion and $3.77 billion, with comparable sales expected to be flat to up 1% [10] - Adjusted diluted EPS is projected to be between $2.00 and $2.10, with free cash flow anticipated at approximately $200 million [10] Long-Term Outlook - The company set long-term financial targets for fiscal 2028, including annual consolidated net sales growth of 1% to 3% and adjusted diluted EPS growth of over 10% [12]

Core Insights - Sally Beauty Holdings, Inc. is expected to report a decline in both revenue and earnings for the fourth quarter of fiscal 2025, with revenue estimated at $933 million, reflecting a decrease of 0.2% year-over-year [1] - The earnings consensus estimate remains stable at 49 cents per share, indicating a 2% decline compared to the same quarter last year [2] Economic Environment - The company is facing macroeconomic challenges that are impacting discretionary spending, particularly among value-conscious consumers who are becoming more selective in their purchasing behavior [3] - Cautious consumer behavior and uneven performance across categories are likely to constrain overall sales momentum in the fiscal fourth quarter [3] Profitability and Costs - Sally Beauty is experiencing profitability pressures due to planned cost increases, with management indicating a modest decline in adjusted operating margin for the fiscal fourth quarter [4] - Increased marketing investments to support the Sally brand refresh in Orlando are contributing to these pressures [4] Strategic Initiatives - The company is making progress with core strategic initiatives aimed at driving sustainable, long-term growth, including deepening customer connections and expanding high-margin owned brands [5] - Efforts to foster innovation and improve operational efficiency are designed to provide a cushion against current headwinds [5] Earnings Prediction - Current models do not predict an earnings beat for Sally Beauty, as it holds a Zacks Rank of 3 and an Earnings ESP of -1.03% [6]

Core Viewpoint - Analysts project that Sally Beauty (SBH) will report quarterly earnings of $0.49 per share, reflecting a 2% decline year over year, with revenues expected to reach $933 million, a slight decrease of 0.2% from the same quarter last year [1]. Group 1: Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that analysts have reassessed their initial estimates during this timeframe [1][2]. - Revisions to earnings estimates are crucial indicators for predicting potential investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [2]. Group 2: Revenue and Sales Projections - Analysts estimate 'Net Sales- Sally Beauty Supply' will reach $527.69 million, indicating a decline of 1.2% from the prior-year quarter [4]. - The estimated 'Net Sales- Beauty Systems Group' is projected at $405.31 million, reflecting a growth of 1.1% from the prior-year quarter [4]. Group 3: Store Metrics - The forecast for 'Number of stores at end-of-period - Beauty Systems Group' is 1,329, slightly down from 1,331 in the same quarter of the previous year [5]. - The total number of stores is expected to reach 4,425, down from 4,460 a year ago [5]. - For 'Number of stores at end-of-period - Sally Beauty Supply', the estimate is 3,096, compared to 3,129 in the previous year [6]. Group 4: Stock Performance - Shares of Sally Beauty have shown a return of -0.6% over the past month, while the Zacks S&P 500 composite has increased by 0.3% [6]. - With a Zacks Rank 3 (Hold), SBH is expected to perform in line with the overall market in the near future [6].

Company Overview - Sally Beauty (SBH) is expected to report a year-over-year decline in earnings due to lower revenues for the quarter ended September 2025, with earnings projected at $0.49 per share, reflecting a -2% change, and revenues expected to be $933 million, down 0.2% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for November 13, and the stock may experience upward movement if the reported numbers exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their outlook for the company [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Sally Beauty is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.03%, suggesting a bearish sentiment among analysts regarding the company's earnings prospects [11]. - Despite the negative Earnings ESP, the stock holds a Zacks Rank of 3, making it challenging to predict a definitive earnings beat [11]. Historical Performance - In the last reported quarter, Sally Beauty exceeded the expected earnings of $0.42 per share by delivering $0.51, resulting in a surprise of +21.43% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times, indicating some level of reliability in surpassing expectations [13]. Market Context - The broader industry context includes MarineMax (HZO), which is expected to report a loss of $0.15 per share for the same quarter, reflecting a significant year-over-year decline of -162.5%, with revenues projected at $535.33 million, down 4.9% [17][18].

Core Insights - Sally Beauty is launching its "Holiday Beauty at Home" campaign to provide consumers with affordable beauty solutions for hairstyles and nails at home, emphasizing expert advice and deals throughout the holiday season [1][4][5] Campaign Details - The campaign features a comprehensive shopping guide with expert tips and influencer recommendations, including tutorials on styling natural hair and creating trendy nail looks [3][5] - Early Black Friday deals began in November, allowing consumers to save on popular beauty products leading up to and through December [4] Influencer and Trend Engagement - Sally Beauty collaborates with top influencers to provide exclusive product recommendations and styling tips, tapping into popular trends such as Coffee Aesthetic and Dark Feminine Energy [5][6] - The retailer has created shoppable mood boards to help consumers achieve these trends at home [5] Partnership and Promotion - Sally Beauty is the official brand partner for Brandy & Monica's "The Boy is Mine" U.S. Tour, promoting holiday beauty inspiration through concert stops and digital campaigns [6] Product Expansion - The company is expanding its product offerings to include trending fragrance brands, launching online throughout November [9]