DENTON, Texas - Sally Beauty (NYSE:SBH) Holdings, Inc. (NYSE:SBH) saw its shares climb 1.76% after the beauty products retailer topped earnings expectations for its fiscal fourth quarter and provided an optimistic outlook for the year ahead.
The company reported adjusted earnings per share of $0.50 for the quarter ended September 30, exceeding analyst estimates of $0.48. Revenue came in at $935.03 million, slightly below the consensus forecast of $935.88 million but up 1.5% YoY.
Sally Beauty's consolidated comparable sales increased 2.0% in Q4, driven by a 2.6% rise at its Sally Beauty Supply segment and a 1.3% gain at Beauty Systems Group.
"We are pleased to conclude our fiscal year with strong fourth quarter results, reflecting continued momentum across both our Sally Beauty and Beauty Systems Group segments," said Denise Paulonis, president and CEO.
The company's adjusted operating margin expanded 80 basis points to 9.4% in Q4. It generated $111 million in cash flow from operations, which was used to repay debt, fund share repurchases, and make a strategic acquisition.
Looking ahead, Sally Beauty provided an upbeat outlook for fiscal 2025. It expects consolidated net sales and comparable sales to be flat to up 2% compared to the prior year. The company forecasts full-year adjusted operating margin in the range of 8.5% to 9.0%.
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