Free Research Report as Sally Beauty Holdings' Quarterly Earnings Increased 74.36%
Stock Monitor: ACM Research Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 16, 2018 /Active-Investors.com has just released a free earnings report on Sally Beauty Holdings, Inc. (NYSE: SBH) (''SBH''). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SBH. On February 08, 2018, SBH reported financial results for the first quarter of 2018 (Q1 FY18) ending December 31, 2017. In Q1 FY18, SBH witnessed modest declines in consolidated net sales and gross margin, which were offset by benefits from the Company's restructuring plan, tight control of discretionary expenses, and lower interest expense. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Sally Beauty Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
SBH's total revenues reached $994.96 million for Q1 FY18, a decrease of 0.46% from $999.61 million in Q1 FY17 due to disappointing traffic trends in the US. Sally Beauty stores and the residual impact of Hurricane Maria in Puerto Rico. Foreign currency translation had a favorable impact of approximately 120 basis points on reported sales growth. Same store sales decreased 2.2% y-o-y in the reported quarter. The reported revenue number exceeded analysts' consensus estimates by $3.61 million.
SBH's cost of goods sold jumped 0.09% to $508.34 million in Q1 FY18 from $507.9 million in Q1 FY17. The Company's gross profit fell 1.03% to $486.63 million in the reported quarter from $491.71 million in the same period last year. SBH's gross margin was 48.91% for Q1 FY18, a decrease of 28 basis points from the prior year's comparable quarter.
SBH had selling, general, and administrative (SG&A) expenses of $371.29 million in Q1 FY18, a decline of 0.79% from $374.25 million in Q1 FY17. SBH generated operating earnings of $110.13 million in Q1 FY18 compared to $117.46 million in Q1 FY17, reflecting a decrease of 6.24%.
SBH's net earnings advanced 49.15% to 83.26 million in the quarter ending December 31, 2017, from $55.83 million in the same period last year. This increase was led by inventory related to the Canadian acquisition, the addition of new brands and foreign currency translation. The Company's diluted earnings per share (DEPS) increased 66.67% to $0.65 in Q1 FY18 from $0.39 in Q1 FY17. SBH's reported net income for Q1 FY18 included restructuring charges of $5.21 million related to the 2018 Restructuring Plan, and provision for income taxes of 0.78 million. The Company's adjusted DEPS, excluding non-recurring and non-items, was $0.68 in Q1 FY18, up 74.36% from $0.39 in Q1 FY17. This was $0.26 higher than analysts' consensus estimates for Q1 FY18.
Sally Beauty Holdings' Segment Details
During Q1 FY18, the Sally Beauty Supply (SBS) segment's reported revenues were $585.57 million, a decline of 0.73% y-o-y. This segment's operating income was $86.59 million in the reported quarter, a decrease of 6.41% from $92.53 million in the year ago corresponding quarter. This segment's operating margin declined to 14.8% in Q1 FY18 compared to 15.7% in Q1 FY17. SBH's same store sales decreased 2.6% y-o-y in Q1 FY18, due to the lingering impact of hurricanes in the prior fiscal year. This segment's net store count was 3,787 at the end of the reported quarter.
The Beauty Systems Group (BSG) segment reported revenues of $409.39 million in Q1 FY18, a decrease of 0.09% from $409.75 million in Q1 FY17. This segment's operating income increased 1.52% to $64.57 million in the quarter under review from $63.6 million in the previous year's same quarter. Operating margin improved to 15.8% in Q1 FY18 from 15.5% in Q1 FY17. BSG's same store sales declined 1.3% y-o-y in Q1 FY18, due to the negative impact from the prior year's hurricanes. This segment's net store count was 1,390 at the end of the reported quarter, driven by the H. Chalut Ltée acquisition and the net increase in CosmoProf stores.
Cash Matters
SBH had cash and cash equivalents of $79.31 million as on December 31, 2017, an increase of 24.39% from $63.76 million as on September 30, 2017.
SBH's net cash flow from operating activities was $104.2 million in Q1 FY18 compared to $89.79 million in Q1 FY17, reflecting an increase of 16.05%. The Company's operating free cash flow for the quarter under review was $81.71 million, up 32.24% from $61.79 million in the previous year's same quarter.
SBH incurred capital expenditures of $22.5 million in Q1 FY18, mainly for information technology projects, store remodels and maintenance, and distribution facility upgrades. The Company repurchased a total of 3.8 million shares of common stock at an aggregate cost of $64.5 million in the quarter under review.
Outlook
For full-year 2018, SBH expects consolidated same store sales to be approximately flat from the previous year. However, due to the addition of new stores from the H. Chalut Ltée acquisition, the Company expects consolidated year-end store count to increase slightly from the previous year.
SBH anticipates 2018 gross margin to be approximately flat from the previous year. The Company anticipates general and administrative (G&A) expenses (including depreciation and amortization (D&A) expense) to be approximately 37.5% of sales in 2018 compared to 37.2% of sales in the previous year. The Company expects its full year 2018 reported operating earnings to increase slightly, mainly due to lower restructuring costs.
Stock Performance Snapshot
March 15, 2018 - At Thursday's closing bell, Sally Beauty Holdings' stock fell 1.41%, ending the trading session at $16.83.
Volume traded for the day: 938.48 thousand shares.
Stock performance in the previous three-month period - up 2.81%
After yesterday's close, Sally Beauty Holdings' market cap was at $2.10 billion.
Price to Earnings (P/E) ratio was at 10.28.
The stock is part of the Services sector, categorized under the Specialty Retail, Other industry. This sector was up 0.1% at the end of the session.
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