In the second quarter, Sally Beauty came up short of Wall Street sales and earnings estimates as supply chain, inflation and stimulus factors weighed.
Second-quarter net earnings were $46.8 million, or 42 cents per diluted share, versus $38.3 million, or 34 cents per diluted share, in the year-prior period.
Adjusted for one-time events, net earnings were $51.9 million, or 47 cents per diluted share, versus $65.5 million, or 57 cents per diluted share, in the period a year previous, the company stated.
Sally Beauty earnings per adjusted diluted share fell four cents short of an analyst consensus estimate published by MarketBeat as sales missed a $951.2 million estimate.
Net sales were $911.4 million versus $926.3 million in the quarter a year earlier. the company reported. Operating earnings were $86.5 million versus $75.5 million in the year-before period.
Sally Beauty Supply’s retail division net sales were $525.8 million in the quarter, down 3.1% year over year, while the Beauty Systems Group, which sells professional products to salons, posted a net sales increase of 0.5% to $385.6 million.
.“After a strong start to the year, we experienced greater than expected pressure on the top line as supply chain and inflationary challenges intensified in the back half of the quarter and we lapped the stimulus benefits of 2021,” said Denise Paulonis, Sally Beauty president and CEO, in announcing the financial results. “While these factors impacted net sales, we delivered healthy gross margins above 51% and adjusted earnings per share of 47 cents. As we navigate the ongoing macro environment, we remain confident in the underlying strength of our business and the resiliency of our core color and care customers. Our teams are continuing to focus on our four key growth pillars, which include leveraging our digital platform, driving loyalty and personalization, delivering product innovation and optimizing our supply chain. Importantly, our strong balance sheet allowed us to continue investing for growth while returning value to shareholders through our share repurchase program during the quarter.”
