Key Takeaways HELE's Q1 EPS dropped 58.6% to $0.41, missing estimates due to lower income and higher interest expense. Q1 sales fell 10.8% to $371.7M, hurt by weak demand, tariff-related order cuts and inventory pull-forward. Gross margin fell 160 bps to 47.1% as trade-down, higher costs and mix shifts pressured profitability.Helen of Troy Limited (HELE) experienced a sharp 22.7% drop in its share price during Thursday after-hours trading, following disappointing first-quarter fiscal 2026 results. The com ...

Core Points - Empro Group Inc. has successfully closed its initial public offering, raising approximately $5.5 million by offering 1,375,000 ordinary shares at $4.00 per share [1] - The shares began trading on the Nasdaq Capital Market under the ticker symbol "EMPG" on July 2, 2025 [1] - The underwriter, R.F. Lafferty & Co., Inc., has an option to purchase an additional 206,250 shares to cover over-allotments within 45 days [1] Company Overview - Empro Group Inc. is a beauty and personal care brand based in Malaysia, evolving from its origins in eyebrow embroidery to a trusted name in cosmetics, skincare, and healthcare [5] - The company aims to provide accessible, quality self-care solutions and has a growing presence in Southeast Asia and Europe [5]

Core Viewpoint - European Wax Center, Inc. (EWCZ) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding the company's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, the earnings estimate is projected at $0.17 per share, marking a 13.33% increase from the previous year, with a 48.94% rise in consensus estimates over the last 30 days [6]. - For the full year, the expected earnings are $0.61 per share, representing a year-over-year increase of 35.56%, with a notable 127.06% increase in consensus estimates due to positive revisions [7][8]. Zacks Rank and Performance - European Wax Center currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in revising earnings estimates upward, which historically correlates with stock outperformance [9]. - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][9]. Stock Performance - The stock has gained 68.6% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects, suggesting it may be a good addition to investment portfolios [10].

Financial Data and Key Metrics Changes - The company reported net sales of $1.4 billion, an increase of 2.9% compared to the prior year, marking the strongest underlying sales performance since 2021 [28] - Earnings per diluted share were $0.49, exceeding the high end of the guidance range [17] - Gross profit rate was 45.4%, an increase of 160 basis points year-over-year, driven by a 100 basis point improvement in merchandise margin [30][31] Business Line Data and Key Metrics Changes - Body care grew low single digits, driven by the success of the Disney Princess line and the expansion of the everyday luxuries line [21] - Home fragrance also grew low single digits, supported by single wick candles and wallflowers [21] - Soaps and sanitizers grew mid single digits, driven by on-the-go assortments [21] Market Data and Key Metrics Changes - International retail sales grew approximately 10% this quarter, representing about 5% of total net sales [27][30] - U.S. and Canadian store net sales totaled $1.1 billion, an increase of 4.3% versus the prior year [29] Company Strategy and Development Direction - The company aims to transform Bath and Body Works to accelerate growth and deepen customer connections, focusing on consumer-centric strategies [9][10] - Plans include enhancing digital capabilities, improving packaging, exploring new distribution forms, and expanding internationally [12][14] - The strategy will prioritize fewer, bolder initiatives to drive consistent and repeatable growth [53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to absorb current tariff levels and maintain guidance for the year [33][34] - The company is optimistic about the innovation pipeline for the second half of the year, including new product launches and collaborations [50][75] - Management emphasized the importance of emotional connections with consumers and the need for compelling storytelling in marketing [61][92] Other Important Information - The loyalty program has approximately 39 million active members, up 4% from the prior year, driving increased customer engagement [23][24] - The company plans to maintain capital expenditures of $250 million to $270 million, focusing on real estate and technology [37] Q&A Session Summary Question: What attracted you to Bath and Body Works? - The CEO highlighted the emotional connection of the brand and its strong foundation, including a large number of stores and loyal customers [44] Question: Can you elaborate on the go-forward top line commentary? - Management noted that Disney was a key driver of growth and expressed confidence in upcoming product launches [48] Question: What are the building blocks of opportunity for growth? - The CEO mentioned focusing on fewer priorities and leveraging existing investments to drive growth [55] Question: How do you view pricing strategy in light of tariffs? - Management stated they will remain agile and responsive to customer needs while maintaining value [103] Question: What is the strategy for international expansion? - The CEO emphasized a selective approach to international markets, focusing on understanding local consumer needs [105] Question: How do you plan to enhance marketing efforts? - Management indicated a shift towards emotional storytelling and less reliance on price promotions [61]

Core Insights - Ulta Beauty's stock has increased by 12.9% over the past month, while the industry and S&P 500 have grown by 16.1% and 15.4% respectively, prompting investors to consider whether to hold or take profits [1] Company Strategy and Performance - Ulta Beauty has transformed the beauty industry by combining mass, prestige, and luxury brands in an accessible shopping environment, which has driven significant profitable growth [3] - The company maintains a balanced approach between online and physical stores, with e-commerce sales growing mid-single digits in Q4 of fiscal 2024, reflecting a shift towards digital beauty shopping [4] - The skincare category has seen mid-single-digit comparable sales growth in Q4 of fiscal 2024, driven by strong demand for body care and new brands like Sol de Janeiro, Naturium, and TATCHA [5] Challenges and Concerns - The fourth-quarter results revealed a mid-single-digit decline in comparable sales for the makeup category, primarily due to softness in mass makeup, which is critical for driving traffic and sales [6] - Rising operating expenses are a concern, with SG&A expenses increasing to 23.4% of net sales in Q4 of fiscal 2024, up from 23.1% the previous year, and expected to rise approximately 10% in fiscal 2025 due to strategic investments and higher payroll costs [7][8] Valuation - Ulta Beauty is trading at a forward 12-month price-to-earnings multiple of 17.38X, which is above the industry average of 16.81X, indicating potential overvaluation relative to its fundamentals [9] Investment Outlook - The recent stock rally reflects investor optimism driven by strong skincare performance, a resilient omnichannel strategy, and ongoing innovation, but challenges in the makeup category and rising expenses suggest the stock may be pricing in near-term perfection [12]

Q1 2025 Earnings Presentation 1 MICHEL BROUSSET MANUEL MANFREDI CO-FOUNDER & CEO CHIEF FINANCIAL OFFICER 2 DISCLAIMER Cautionary Statement Regarding Forward-Looking Statements All statements in this release that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about: Waldencast's outlook and guidance for 2025; our ability to deliver financial resu ...

Financial Performance - Q1 2025 net revenue was $65.4 million, representing a 4.1% decline from Q1 2024 [4][10] - Adjusted gross margin improved to 76.4%, an increase of 10 basis points year-over-year [5][10] - Adjusted EBITDA for Q1 2025 was $4.4 million, or 6.7% of net revenue, reflecting a significant decline of 61.5% compared to Q1 2024 [6][10] Brand Performance - Milk Makeup's net revenue decreased by 15.1% to $29.3 million, impacted by the previous year's successful product launch and inventory reductions [12][13] - Obagi Medical achieved net revenue of $36.2 million, up 7.1% from $33.8 million in Q1 2024, driven by strong direct-to-consumer sales [13][10] Strategic Initiatives - The company is increasing marketing investments by high teens percentage to build brand equity and support long-term growth objectives [3][5] - Milk Makeup's entry into Ulta Beauty and the launch of Hydro Grip Gel Tint are expected to drive future sales growth [3][12] Liquidity and Debt - Waldencast secured a new $205 million five-year credit facility, enhancing financial flexibility and extending debt maturity to March 2030 [7][8] - As of March 31, 2025, the company held $10.8 million in cash and cash equivalents and had a net debt of $172.1 million [8][10] Outlook - The company aims for mid-teens net revenue growth and an adjusted EBITDA margin in the mid-to-high teens for fiscal 2025 [14][15]

Core Viewpoint - Sally Beauty Holdings, Inc. reported mixed results for Q2 of fiscal 2025, with earnings exceeding estimates but revenues declining due to macroeconomic challenges, prompting management to lower its full-year outlook [1][15]. Financial Performance - Adjusted earnings were 42 cents per share, surpassing the Zacks Consensus Estimate of 39 cents, and increased from 35 cents in the prior year [2]. - Consolidated net sales totaled $883.1 million, missing the consensus estimate of $901.1 million, and fell 2.8% year over year [2]. - Consolidated gross profit was $458.8 million, down 0.9% from $463.1 million in the prior year, while gross margin improved to 52%, up 100 basis points [5]. - Adjusted operating earnings rose to $75.2 million from $68.6 million in the previous year, with an adjusted operating margin expanding to 8.5% from 7.6% [7]. Sales Insights - Consolidated comparable sales declined 1.3%, influenced by external factors such as weather and macroeconomic uncertainty, although hair color products and digital marketplace growth provided some offset [3]. - Sally Beauty Supply segment net sales decreased 2.5% year over year to $500.6 million, while Beauty Systems Group net sales fell 3.2% to $382.6 million [8][9]. Cost Management - Adjusted SG&A expenses totaled $383.7 million, reflecting a $10.8 million decrease year over year, maintaining a flat percentage of sales at 43.4% [6]. - Adjusted EBITDA was $104.8 million, representing a 5.3% increase from the previous year, with an adjusted EBITDA margin of 11.9%, up 90 basis points [7]. Financial Health - The company ended the quarter with cash and cash equivalents of $92.2 million, long-term debt of $902.8 million, and total stockholders' equity of $699.8 million [11]. - Cash flow from operations was $51 million, with operating free cash flow at $32 million [11]. Future Outlook - For fiscal 2025, comparable sales are projected to range from flat to a 1% decline, with consolidated net sales expected to be nearly 75 basis points lower than comparable sales due to foreign exchange impacts [16]. - The adjusted operating margin is anticipated to be between 8% and 8.5% for fiscal 2025, revised down from earlier expectations [16].

Sally Beauty Holdings (SBH) Q2 2025 Earnings Call May 12, 2025 08:30 AM ET Company Participants Jeff Harkins - Vice President of Investor Relations & Strategic PlanningDenise Paulonis - President , CEO & DirectorMarlo Cormier - SVP & CFOOliver Chen - Managing Director - Retail, Luxury, New Platforms Sector HeadSimeon Gutman - Managing DirectorLillian Moffett - Equity Research AssociateSydney Wagner - Equity Research Senior Associate - Beauty & Personal Care Conference Call Participants Korinne Wolfmeyer - V ...

Sally Beauty Holdings (SBH) Q2 2025 Earnings Call May 12, 2025 08:30 AM ET Speaker0 Good morning, everyone, and welcome to Sally Beauty Holdings' Call to discuss the Company's Second Quarter Fiscal twenty twenty five Results. All participants have been placed in a listen only mode. After management's prepared remarks, there will be a question and answer session. Additional instructions will be given at that time. Now I'd like to turn the call over to Jeff Harkins, Vice President of Investor Relations and Tr ...