Sally Beauty Q4 Earnings Beat Estimates, Sales Increase Y/Y

Core Insights - Sally Beauty Holdings, Inc. reported strong fourth-quarter fiscal 2025 results, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][10]. Financial Performance - Adjusted earnings per share were $0.55, surpassing the Zacks Consensus Estimate of $0.49, and increased by 10% from $0.50 in the previous year [2][10]. - Consolidated net sales reached $947.1 million, exceeding the Zacks Consensus Estimate of $933 million, and grew by 1.3% from $935 million in the same quarter last year [2][10]. - Consolidated comparable sales also increased by 1.3% year over year [2]. E-commerce Performance - Global e-commerce sales amounted to $105 million, accounting for 11.1% of consolidated net sales for the quarter [3]. Margin and Cost Analysis - Gross profit rose by 3.1% year over year to $494.1 million, with gross margin expanding by 100 basis points to 52.2% [4]. - Adjusted selling, general and administrative expenses increased to $405.3 million, up $14 million from the previous year, representing 42.8% of sales compared to 41.8% a year earlier [4]. - Adjusted operating earnings were $88.6 million, slightly up from $88 million in the prior year, maintaining an adjusted operating margin of 9.4% [4]. Segment Performance - In the Sally Beauty Supply segment, net sales increased by 1.4% year over year to $541.6 million, with comparable sales growing by 1.2% [6]. - The Beauty Systems Group saw net sales rise by 1.1% to $405.5 million, with comparable sales improving by 1.4% and operating margin expanding by 160 basis points to 12.6% [6]. Financial Health - At the end of the fiscal fourth quarter, the company had cash and cash equivalents of $149.2 million, long-term debt of $862 million, and total stockholders' equity of $794.2 million [7]. - The company generated cash flow from operations of $121 million, with operating free cash flow at $78 million [7]. Future Guidance - For fiscal 2026, the company projects comparable sales growth to be flat to up 1% year over year, with consolidated net sales expected between $3.71 billion and $3.77 billion [11]. - Adjusted earnings per share are forecasted to be in the range of $2.00 to $2.10 for the fiscal year [11].