Sally Beauty Holdings (SBH) Reports In-Line Q3 EPS

Sally Beauty Holdings (NYSE: SBH) reported Q3 EPS of $0.60, in-line with the analyst estimate of $0.60.

• Consolidated same store sales decreased by 2.0%
• GAAP diluted EPS of $0.48; decrease of 2.0% versus prior year, driven by restructuring charges and expenses related to previously disclosed data security incidents
• Adjusted diluted EPS of $0.60; growth of 15.4% versus prior year
• Global e-commerce sales increased by 30.8% versus prior year
• Multi-quarter transformation plan underway; continuing to make progress
• Strong cash flow from operations utilized to reduce indebtedness and fund share repurchases

“Despite the short-term challenges we are facing, we continue to make progress on the core elements of a transformation plan that we are confident will put Sally Beauty Holdings on the right track long-term,” said Chris Brickman, President and Chief Executive Officer. “During the third quarter, core traffic challenges were exacerbated by material issues from two of our top manufacturers for Beauty Systems Group and the impact of significant, but necessary, internal changes in how we operate.”

Update on Transformation Plan

“As we mentioned in April, in partnership with FTI Consulting, we are undertaking a substantial transformation plan at Sally Beauty Holdings, which seeks to align our operations to reduce our cost base, refocus our team on the defensible categories of hair color and hair care, and improve execution of basic retail fundamentals, all with the goal of returning the business to growth,” Brickman continued. “This effort will take multiple quarters, but we have already made progress and we are fully committed to transforming and investing in our business, controlling our indebtedness, and returning capital to shareholders.”

For earnings history and earnings-related data on Sally Beauty Holdings (SBH) click here.

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