☐ 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. 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: MARCH 31, 2024 or (Exact name of registrant as specified in its charter) Delaware 36-2257936 (State or other jurisdiction of incorporation or organization) (I.R. ...

Financial Performance - Consolidated net sales for Q2 2024 were $908 million, a decrease of 1.1% compared to the prior year[5]. - Consolidated comparable sales declined by 1.5%, primarily due to soft traffic and consumer purchasing trends at Sally Beauty[7]. - GAAP net earnings were $29.2 million, or $0.27 per diluted share, compared to $40.9 million, or $0.37 per diluted share in the prior year[11]. - Operating earnings decreased by 16.6% to $59,574 for the three months ended March 31, 2024, compared to $71,408 in the same period of 2023[37]. - For the three months ended March 31, 2024, net earnings were $29,244,000, a decrease of 28.4% compared to $40,861,000 for the same period in 2023[43]. - Adjusted EBITDA for the three months ended March 31, 2024, was $99,500,000, a decrease of 5.4% from $105,220,000 in the same period of 2023[47]. - For the six months ended March 31, 2024, net earnings were $67,634,000, down 25.8% from $91,198,000 in the same period of 2023[47]. Margins and Expenses - GAAP gross margin was 51.0%, unchanged from the prior year, while adjusted gross margin increased by 30 basis points to 51.0%[8]. - GAAP operating earnings were $60 million with an operating margin of 6.6%, down from $71.4 million and 7.8% in the prior year[10]. - Selling, general and administrative (SG&A) expenses for the three months ended March 31, 2024, were $403,435,000, representing 44.4% of sales, compared to 42.4% in the same period last year[43]. - SG&A expenses as a percentage of sales for the six months ended March 31, 2024, were 43.6%, compared to 41.6% in the same period last year[45]. Cash Flow and Debt - Cash flow from operations was $37 million, with capital expenditures totaling $14.1 million[14]. - The company refinanced a $680 million senior unsecured note due 2025, extending the maturity to 2032[3]. - The updated full-year guidance includes an expected operating cash flow of approximately $240 million and capital expenditures of about $100 million[21]. - The company reported a net debt leverage ratio of 2.2x as of March 31, 2024[12]. - Interest expense increased to $20,523,000 for the three months ended March 31, 2024, compared to $16,685,000 in the prior year, marking a 23.0% increase[47]. - The company incurred a loss on debt extinguishment related to the repayment of its 5.625% Senior Notes due 2025, which included a write-off of $2,000,000 in unamortized deferred financing costs[43]. Inventory and Assets - Total current assets increased to $1,280,323 as of March 31, 2024, compared to $1,227,997 as of September 30, 2023[39]. - Inventory rose to $1,039,752 as of March 31, 2024, from $975,218 as of September 30, 2023[39]. - Total liabilities decreased slightly to $2,195,692 as of March 31, 2024, from $2,216,502 as of September 30, 2023[39]. Store Performance - As of March 31, 2024, the total number of consolidated stores decreased to 4,468 from 4,484 in 2023, a decline of 16 stores[49]. - The total number of SBS stores decreased to 3,134 in 2024 from 3,143 in 2023, a decline of 9 stores[49]. - The total number of company-operated BSG stores decreased to 1,202 in 2024 from 1,209 in 2023, a decline of 7 stores[49]. - The total number of franchise stores remained unchanged at 132 for both 2024 and 2023[49]. Comparable Sales - Comparable sales for SBS declined by 4.0% in Q1 2024, compared to a growth of 9.1% in Q1 2023, representing a change of 1,310 basis points[50]. - BSG's comparable sales grew by 2.0% in Q1 2024, an increase from 1.3% in Q1 2023, reflecting a change of 70 basis points[50]. - Consolidated comparable sales declined by 1.5% in Q1 2024, compared to a growth of 5.7% in Q1 2023, a change of 720 basis points[50]. - BSG's comparable sales for the six months ended March 31, 2024, increased by 1.3%, compared to a decline of 0.2% in the same period of 2023, reflecting a change of 150 basis points[50]. - The overall comparable sales for the six months ended March 31, 2024, declined by 1.1%, compared to a growth of 3.3% in the same period of 2023, a change of 440 basis points[50].

Sally Beauty Holdings, Inc. (NYSE:SBH) Q1 2024 Earnings Conference Call February 1, 2024 8:30 AM ET Company Participants Jeff Harkins - Vice President, Investor Relations and Treasurer Denise Paulonis - President and Chief Executive Officer Marlo Cormier - Chief Financial Officer Conference Call Participants Korinne Wolfmeyer - Piper Sandler Ashley Helgans - Jefferies Simeon Gutman - Morgan Stanley Olivia Tong - Raymond James Oliver Chen - TD Cowen Linda Bolton-Weiser - DA Davidson Operator Good morning, ev ...

Financial Performance - Consolidated net sales for the three months ended December 31, 2023, decreased by $25.8 million, or 2.7%, to $931.3 million compared to the same period in 2022[60] - Consolidated comparable sales decreased by 0.8% for the three months ended December 31, 2023[60] - Consolidated gross profit for the three months ended December 31, 2023, decreased by $21.4 million, or 4.4%, to $467.2 million, with a gross margin decline of 80 basis points to 50.2%[60] - Consolidated operating earnings decreased by $17.5 million, or 20.2%, to $69.1 million for the three months ended December 31, 2023, with an operating margin decrease of 160 basis points to 7.4%[60] - Consolidated net earnings decreased by $11.9 million, or 23.7%, to $38.4 million for the three months ended December 31, 2023[60] Cash Flow and Liquidity - Cash provided by operations was $51.0 million for the three months ended December 31, 2023, compared to $55.0 million for the same period in 2022[60] - At December 31, 2023, the company had $603.6 million in liquidity, including $482.6 million available for borrowing under its ABL facility[74] Store Operations - The number of stores at the end of the period decreased by 23, or 0.5%, to 4,475 stores[61] - SBS's net sales decreased by $26.2 million, or 4.8%, primarily due to store closures and fewer transactions[61] - BSG's net sales increased slightly by $0.5 million, or 0.1%, driven by comparable sales growth and improved salon demand trends[61] Asset and Liability Management - As of December 31, 2023, total assets for the Issuers and Guarantors amounted to $2,055,835, a decrease from $2,076,413 as of September 30, 2023, reflecting a decline of approximately 1.0%[84] - Current liabilities decreased from $468,202 as of September 30, 2023, to $459,005 as of December 31, 2023, indicating improved financial management[84] - Total liabilities also saw a reduction from $2,011,075 to $1,982,179 during the same period, reflecting a decrease of approximately 1.4%[84] Shareholder Actions - During the three months ended December 31, 2023, the company repurchased 1.9 million shares of common stock for $20.0 million, marking a strategic move to enhance shareholder value[85] Financial Reporting and Risks - The company had no off-balance sheet financing arrangements other than outstanding letters of credit related to inventory purchases as of December 31, 2023[87] - There have been no material changes to critical accounting estimates or assumptions since September 30, 2023, ensuring consistency in financial reporting[88] - The company remains subject to market risks including foreign currency fluctuations and interest rates, with no material changes reported since September 30, 2023[90] - There have been no material changes to contractual obligations outside the ordinary course of business since September 30, 2023, indicating stable operational commitments[86]

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].

Sally Beauty Holdings, Inc. (NYSE:SBH) Q4 2023 Earnings Conference Call November 14, 2023 8:30 AM ET Company Participants Jeff Harkins - Vice President-Investor Relations & Treasurer Denise Paulonis - President & Chief Executive Officer Marlo Cormier - Chief Financial Officer Conference Call Participants Oliver Chen - TD Cowen Korinne Wolfmeyer - Piper Sandler Ashley Helgans - Jefferies Olivia Tong - Raymond James Operator Good morning everyone, and welcome to Sally Beauty Holdings Conference Call to discus ...

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) | | ...