Although store closings weighed on financial results, Sally Beauty comparable sales gained as the company topped Wall Street estimates.
Adjusted diluted earnings per share topped a MarketBeat analyst consensus of 49 cents while sales beat a $921.7 million estimate.
First quarter consolidated net sales were $957.1 million, down 2.4% versus the prior-year period, the company indicated. Consolidated comparable sales gained 1.1% year over year. Operating earnings were $86.6 million versus $112.8 million in the year-past period.
Sally Beauty segment net sales were $549.5 million in the quarter, a decrease of 2.1% compared to the year-before period while comparable sales increased by 3%. In the U.S. and Canada, where SBS does 78% of its sales, comps gained 2.6%. The segment had an unfavorable impact of 210 basis points from foreign currency exchange on reported sales and operated 383 fewer stores at quarter’s end versus the year-previous period. On a constant currency basis, segment e-commerce sales advanced 13% to $35 million versus the year-before quarter and represented 6.4% of segment net sales in the period, according to Sally Beauty.
Segment net sales at the Beauty Systems Group focused on professional sales in the beauty sector, were $407.6 million, down 2.7% versus the year-earlier quarter.
“We are pleased with our first quarter results, which reflect strong execution from our teams and a continuing focus on our strategic initiatives designed to inspire a more colorful, confident and welcoming world,” said Denise Paulonis, president and CEO, in announcing the financial results. “During the first quarter, we delivered net sales of $957 million, adjusted gross margin of 51% and adjusted EBITDA of $126 million. In addition, we successfully implemented our distribution center consolidation and store optimization plan, furthering our goal to maximize the value of our large real estate portfolio, optimize our supply chain and provide a seamless omnichannel experience to our customers.”
