Financial Data and Key Metrics Changes - The company reported a 10% increase in adjusted operating earnings and a 20% growth in adjusted earnings per share year-over-year despite a challenging external environment [5][21] - Consolidated net sales decreased by 2.8% to $883 million, with a comparable sales decline of 1.3% [21][22] - Adjusted operating margin expanded by 90 basis points to 8.5%, and adjusted EBITDA margin increased by 90 basis points to 11.9% [26][30] Business Line Data and Key Metrics Changes - In the Sally Beauty segment, net sales decreased by 2.5% to $500 million, with comparable sales roughly flat at -0.3% [27] - The BSG segment saw net sales decrease by 3.2% to $383 million, with comparable sales down 2.7% [29] - E-commerce sales for Sally increased by 21% year-over-year, while BSG's e-commerce sales represented 14% of segment net sales [27][29] Market Data and Key Metrics Changes - The company experienced a decline in purchasing behavior due to economic uncertainty and an unusually harsh flu season impacting both consumer and stylist segments [6][21] - E-commerce sales at constant currency were $94 million, up 6% year-over-year, representing 11% of total net sales [22] Company Strategy and Development Direction - The company is focused on enhancing customer centricity, growing high-margin owned brands, and increasing operational efficiency [9][19] - Strategic initiatives include digital marketplaces, licensed Colorist on Demand, product innovation, and a brand refresh for Sally [9][16] - The company is also expanding its Happy Beauty initiative, focusing on indie brands and key trends like Korean beauty [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the latter part of Q2 reflected a more challenging external environment than anticipated, impacting consumer sentiment and spending [5][6] - The company expects sales trends to improve in the second half of the year, despite ongoing macroeconomic uncertainties [8][19] - Guidance for fiscal 2025 was adjusted to reflect a range of flat to down 1% for comparable sales, with net sales expected to be approximately 75 basis points lower than previously anticipated [33][34] Other Important Information - The company generated strong cash flow from operations of $51 million and maintained a healthy balance sheet with $92 million in cash [30][31] - A four-year extension to the share repurchase program was announced, with approximately $500 million remaining under the original authorization [32] Q&A Session Summary Question: Comparison of Sally division to BSG and e-commerce forecast - Management noted that both segments experienced lighter sales, but strategic initiatives contributed positively to comp sales [37][39] - E-commerce momentum is expected to continue with the expansion of marketplace strategies [42] Question: Store refresh performance and Happy Beauty growth - Initial results from the store refresh have been positive, with increased customer engagement noted [45] - Happy Beauty stores are performing well, and management is optimistic about future expansion [46] Question: Impact of tariff changes on consumer behavior - Management expressed hope that recent tariff news would reduce consumer uncertainty, but noted that consumer behavior remains to be seen [49][50] Question: Guidance change and segment trends - The guidance reflects current business trends, with BSG expected to recover while Sally's care business may remain softer [55][56] Question: Current promotional environment - Management feels confident in their strategy and is closely monitoring consumer sentiment for any necessary tactical adjustments [78] Question: Innovation driving traffic and conversion - Trends in glossing and press-on nails are driving traffic, with strong performance from various brands supporting these trends [82]

Financial Data and Key Metrics Changes - The company reported a 10% increase in adjusted operating earnings and a 20% growth in adjusted earnings per share year-over-year despite a challenging external environment [4] - Consolidated net sales decreased by 2.8% to $883 million, impacted by a 110 basis point unfavorable foreign currency effect [20] - Adjusted operating margin increased by 90 basis points to 8.5%, while adjusted EBITDA margin also rose by 90 basis points to 11.9% [24] Business Line Data and Key Metrics Changes - In the Sally Beauty segment, net sales decreased by 2.5% to $500 million, with comparable sales roughly flat at -0.3% [25] - The BSG segment saw net sales decrease by 3.2% to $383 million, with comparable sales down 2.7% [27] - E-commerce sales for Sally increased by 21% year-over-year to $41 million, representing 8% of segment net sales [25] Market Data and Key Metrics Changes - E-commerce sales globally were $94 million, up 6% year-over-year, accounting for 11% of total net sales [21] - The company experienced a decline in comparable sales due to external factors such as a harsh flu season and macroeconomic uncertainty [20][27] Company Strategy and Development Direction - The company is focused on enhancing customer centricity, growing high-margin owned brands, and increasing operational efficiency [9] - Strategic initiatives include digital marketplaces, licensed Colorist on Demand, and product innovation, which contributed to a 225 basis point comp sales growth before macro pressures [14] - The company is rolling out a brand refresh to modernize its image and attract new customer segments [15] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer sentiment and spending were impacted by economic uncertainty, particularly in the latter part of Q2 [5] - The company anticipates improving sales trends in the BSG segment as the flu season subsides [7] - Guidance for Q3 and full-year outlook reflects expectations of flat to down 1% comparable sales, with adjusted operating margin projected between 8% to 8.5% [31] Other Important Information - The company has a strong balance sheet with $92 million in cash and no outstanding borrowings [28] - A four-year extension to the share repurchase program was announced, with approximately $500 million remaining under the original authorization [30] Q&A Session Summary Question: Comparison of Sally division to BSG and e-commerce forecast - Management noted that both segments experienced lighter sales, but strategic initiatives contributed positively to comp sales growth [34][36] Question: Store refresh performance and Happy Beauty initiative - Initial results from the store refresh have been positive, with increased customer engagement noted [42] Question: Impact of tariff changes on consumer behavior - Management expressed hope that recent tariff news would reduce consumer uncertainty and improve spending habits [46] Question: Guidance change and segment performance outlook - The guidance reflects current trends, with expectations of recovery in the BSG segment and continued strength in color sales for Sally [52][54] Question: Current promotional environment and consumer sentiment - Management feels confident in their strategy but is closely monitoring consumer behavior for potential adjustments [76]

Core Insights - Sally Beauty reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and showing an increase from $0.35 per share a year ago, resulting in an earnings surprise of 7.69% [1] - The company posted revenues of $883.15 million for the quarter ended March 2025, which was 1.99% below the Zacks Consensus Estimate and a decrease from $908.36 million in the same quarter last year [2] - Over the last four quarters, Sally Beauty has surpassed consensus EPS estimates three times but has only topped revenue estimates once [2] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $941.48 million, and for the current fiscal year, it is $1.83 on revenues of $3.72 billion [7] - The estimate revisions trend for Sally Beauty is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Retail - Miscellaneous industry, to which Sally Beauty belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another competitor in the same industry, Ulta Beauty, is expected to report quarterly earnings of $5.73 per share, reflecting a year-over-year decline of 11.4%, with revenues projected at $2.79 billion, up 2.2% from the previous year [9][10]

Exhibit 99.1 Contact: Jeff Harkins Investor Relations 940-297-3877 jharkins@sallybeauty.com Sally Beauty Holdings Reports Second Quarter Fiscal 2025 Results Repurchases will be made in compliance with all U.S. Securities and Exchange Commission rules, including Rule 10b-18, and other legal requirements. Fiscal 2025 Second Quarter Operating Results Third Consecutive Quarter of Operating Margin Expansion DENTON, Texas, May 12, 2025 – Sally Beauty Holdings, Inc. (NYSE: SBH) ("the Company"), the leader in profe ...

Core Insights - Sally Beauty (SBH) is expected to report quarterly earnings of $0.39 per share, an increase of 11.4% year-over-year, with revenues forecasted at $901.1 million, reflecting a decrease of 0.8% compared to the previous year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' projections [1][2] Financial Metrics - Analysts predict 'Net Sales- Sally Beauty Supply' to reach $507.67 million, a year-over-year decline of 1.1% [4] - 'Net Sales- Beauty Systems Group' is expected to be $392.35 million, indicating a decrease of 0.7% from the prior-year quarter [4] - The 'Number of stores at end-of-period - Beauty Systems Group' is projected at 1,329, down from 1,334 in the same quarter last year [5] - The total 'Number of stores at end-of-period' is estimated to be 4,450, compared to 4,468 a year ago [5] - 'Number of stores at end-of-period - Sally Beauty Supply' is forecasted to be 3,121, down from 3,134 in the previous year [6] - 'Operating Income- Beauty Systems Group' is expected to be $49.88 million, an increase from $43.02 million reported in the same quarter last year [6] - 'Operating Income- Sally Beauty Supply' is projected at $83.74 million, up from $76.82 million a year ago [7] Market Performance - Over the past month, shares of Sally Beauty have returned -5.2%, contrasting with the Zacks S&P 500 composite's +11.3% change [8] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [8]

Sally Beauty Holdings, Inc. (SBH) is likely to register top-line decline when it reports second-quarter fiscal 2025 earnings on May 12. The Zacks Consensus Estimate for revenues is pegged at $901.1 million, suggesting a decrease of 0.8% from the prior-year quarter's level.Nevertheless, the company is expected to witness a year-over-year increase in its bottom line. The Zacks Consensus Estimate, which has been stable over the past 30 days at 39 cents a share, calls for 11.4% growth compared to the prior year ...

Core Insights - Sally Beauty Holdings, Inc. has partnered with Uber Technologies, Inc. to enhance product accessibility for beauty enthusiasts through Uber Eats, marking it as the first national beauty retailer on the platform [1][2] - The collaboration aims to provide customers with fast and flexible delivery options for a wide range of beauty products, including hair and nail essentials [2][8] - An exclusive launch promotion offers customers 50% off orders of $50 or more until March 31, with additional benefits for Uber One members [3] Company Performance - Sally Beauty reported continued growth in Q1 of fiscal 2025, with positive comparable sales for the third consecutive quarter at Sally Beauty Supply and the fifth at Beauty Systems Group [9] - Digital sales showed significant progress, with an 18% year-over-year growth in e-commerce for Sally Beauty Supply, supported by partnerships with DoorDash and Instacart [10] - Operational efficiency improvements were noted, with gross margin enhancements of 100 basis points for Sally Beauty Supply and 130 basis points for Beauty Systems Group due to the Fuel for Growth program [12] Market Challenges - The company faced a 60-basis point year-over-year negative impact from foreign exchange headwinds on consolidated net sales [13] - A shortened holiday shopping period limited service opportunities and product demand for stylists at Beauty Systems Group [13] - Macroeconomic factors, including a severe flu season and wildfires in Los Angeles, contributed to a challenging start to the fiscal second quarter, affecting consumer traffic and purchasing behavior [14]

Sally Beauty Holdings, Inc. (SBH) has seen its stock price plummet 20.8% in the past three months compared with the industry and S&P 500’s declines of 14% and 6.6%, respectively. While macroeconomic pressures and company-specific challenges have weighed on the stock, the company remains a key player in the beauty retail space. Investors are now debating whether the stock is poised for further downside or if current levels present an opportunity for a rebound.SBH Stock's Price Performance Image Source: Zacks ...

Core Insights - The article discusses the investment strategy and background of an individual investor with extensive experience in analysis roles within hedge funds and private equity [1]. Group 1: Investment Strategy - The investor focuses on cash flow generating private assets, public and private compounders, special situations, and deep value investments [1]. - The investor also engages in short selling, targeting poorly performing businesses and fraudulent models [1]. Group 2: Professional Background - The investor has 20 years of professional experience, including roles in two long/short hedge funds and a Swiss-based asset manager from 2008 to 2020 [1]. - The investor passed all levels of the CFA exam in 2007 but ceased membership in 2024 due to cost considerations [1]. Group 3: Personal Information - The investor is based in Hawaii with a family, including a wife and two children [1].

Modern and collaborative workspace delivers enhanced environment for associates. DENTON, Texas, March 5, 2025 /PRNewswire/ -- Sally Beauty Holdings, Inc. (NYSE: SBH) ("the Company"), the leader in professional hair color, today announced plans to relocate its corporate headquarters from Denton, Texas, to Plano, Texas, maintaining its presence within the greater Dallas-Fort Worth area. Denise Paulonis, Chief Executive Officer of Sally Beauty Holdings, said, "Sally Beauty Holdings' purpose is to inspire a mor ...