Sally Beauty(US:SBH)2025-11-13 11:45Financial 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]