Comps advanced in the third quarter at Sally Beauty as sales and earnings beat a Wall Street estimate.
Net earnings were $37.7 million, or 36 cents per diluted share, versus $50.8 million, or 46 cents per diluted share, in the year-prior quarter. Adjusted for one-time events, net earnings were $48.1 million, or 45 cents per diluted share, the company noted, versus $53.3 million, or 49 cents per diluted share, in the year-earlier quarter.
Sally Beauty topped a MarketBeat-published analyst consensus estimate of 40 cents per adjusted diluted share and revenues of $931.8 million.
Consolidated comparable sales advanced 1.5% year over year, while consolidated net sales increased 1.2% to $942.3 million from the year-previous quarter. Operating earnings were $71.8 million versus $90.1 million in the year-prior period, while adjusted operating earnings were $84.1 million versus $89.8 million.
Sally Beauty Supply sales were $536.5 million and operating income was $86.9 million versus $534.9 million and $88.7 million, respectively, in the year-past quarter. Beauty System Group sales were $405.8 million and operating income was $46.8 million versus $396.1 million and $48.7 million, respectively, in the period a year past.
SBS comparable sales increased by 0.7% year over year with BSG comps up 2.6%.
“We are pleased to report solid third-quarter results, including positive comparable sales in both our Sally Beauty and Beauty Systems Group segments,” said Denise Paulonis, Sally Beauty president and CEO, in announcing the financial results. “At Sally Beauty, we saw positive consumer response to our performance marketing efforts, marketplace expansions, and digital enhancements. These strategic initiatives, amongst others, have driven improving trends in new and reactivated customers. Turning to BSG, continued focus on innovation and territory expansion drove a third consecutive quarter of positive comparable sales. Adjusted gross margin remained strong at 51% and adjusted operating margin of 8.9% exceeded our guidance.”
