Sally Beauty pressed forward in its first quarter with revenue and earnings gains and improved comparable sales year over year in both its business segments.
Net earnings were $61 million, or 58 cents per diluted share, versus $38.4 million, or 35 cents per diluted share, in the prior-year quarter. Adjusted for one-time events, net earnings were $44.8 million, or 43 cents per diluted share, versus $42 million, or 39 cents per diluted share, in the year-earlier period.
Sally Beauty earnings per adjusted diluted share matched a MarketBeat analyst consensus estimate but fell short of a revenue forecast of $941.4 million.
Comparable sales advanced 1.6%, driven primarily by strong growth in hair color and digital marketplaces at Sally Beauty; and the continued momentum at Beauty Systems Group, driven by innovation and expanded distribution, the company reported.
Net sales were $937.9 million, up 0.7% from the year-before quarter. Foreign currency translation had an unfavorable impact of 60 basis points on net sales in the quarter. Sally Beauty operated 22 fewer stores at the end of the quarter versus the year-past period. On a constant currency basis, global e-commerce revenue was $99 million, or 10.6% of net sales in the quarter.
Operating earnings were $100.3 million versus $69.1 million in the year-previous quarter, while adjusted operating earnings were $78.5 million versus $73.9 million.
Sally Beauty Supply segment net sales were $525.4 million in the quarter, an increase of 0.4% with comps up 1.7% year over year. Beauty Systems Group segment net sales were $412.4 million in the quarter, an increase of 1.1% with comps up 1.4% year over year.
“We are pleased to start fiscal 2025 with solid first quarter results, reflecting continued momentum across both our Sally Beauty and Beauty Systems Group segments,” said Denise Paulonis, Sally Beauty president and CEO. “Consistent, high-quality execution of our strategic initiatives is driving our performance. Q1 marks a third consecutive quarter of comparable sales growth across both business units as well as a second consecutive quarter of increased profitability and adjusted operating margin expansion. Additionally, we deployed our cash flow towards investing in our strategic initiatives, further reducing our debt levels, and returning value to shareholders through our share repurchase program.”
