Sally Beauty Holdings (SBH) reported Q4 EPS of $0.50, $0.02 worse than the analyst estimate of $0.52. Revenue for the quarter came in at $962 million versus the consensus estimate of $959.59 million.
GUIDANCE:
We remain encouraged by the rebuilt foundation of the business and are excited about the potential of our new strategic initiatives. As we leverage these strengths, we also expect that the external environment will remain challenging in the nearer term, most notably the inflationary pressure that is negatively impacting consumer purchasing behavior and also driving increased labor costs.
Factoring in the current macro environment and the impact from the Company’s distribution center consolidation and store optimization plan, the Company is providing the following guidance for the full fiscal year 2023:
- Comparable sales, notwithstanding a notable change in consumer behavior, are expected to increase by low single digits compared to the prior year, driven by growth in key categories, sales transfer from store closures, our expanded Regis distribution and new strategic initiatives;
- Net sales are expected to decline by low-single digits compared to the prior year. This reflects approximately 150 to 200 basis points of net unfavorable impact due to store closures and expected sales recapture rates from our optimization efforts, and approximately 150 basis points of anticipated impact from foreign exchange headwinds;
- Gross Margin is expected to remain above 50%; and
- Adjusted Operating Margin is expected to be in the range of 8.5% and 9.5%, inclusive of investment in our store labor as we lean in to elevating the expertise of our associates to drive our growth in the coming years.