Sally Beauty Q1 Earnings Meet Estimates, Sales Increase Y/Y

Core Insights - Sally Beauty Holdings, Inc. (SBH) reported an increase in both net sales and earnings for the first quarter of fiscal 2025, although net sales fell short of the Zacks Consensus Estimate while earnings met expectations [1][3][4] Financial Performance - Adjusted earnings per share were 43 cents, up from 39 cents in the prior year [3] - Consolidated net sales reached $937.9 million, a 0.7$941 million [4] - Consolidated comparable sales rose 1.6% year over year, driven by strong growth in hair color and digital marketplaces [5] Segment Performance - Sally Beauty Supply segment net sales increased 0.4% to $525.4 million, with comparable sales up 1.7$412.4 million, with comparable sales increasing 1.4% [10] Margin and Cost Analysis - Consolidated gross profit was $476.8 million, a 2.1$78.5 million, up from $73.9 million, with adjusted operating margin expanding 50 basis points to 8.4$106 million, with long-term debt of $938.1 million and total stockholders' equity of$656.5 million [12] - The company generated cash flow from operations of $33.5 million and used cash flow to repay$41 million of Term Loan B debt [13][14] Future Guidance - For the second quarter of fiscal 2025, the company expects comparable sales to be approximately flat year over year, with consolidated net sales anticipated to be about 100 basis points lower due to foreign exchange impacts [15] - For fiscal 2025, comparable sales are expected to range from flat to up 2%, with an adjusted operating margin forecasted between 8.5% and 9% [16]