Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.) · NYSE:SBH
Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.) — Sally Beauty Holdings — Q4 FY2019 Earnings Presentation
18 slides from Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.)'s earnings presentation, Nov 7, 2019
Slide 1: Welcome to the New Sally. New Look. New Experience.
WELCOME TO THE NEW SALLY. NEW LOOK. NEW EXPERIENCE. Sally Beauty Holdings, Inc. Fiscal 2019 Fourth Quarter Earnings Call November 7, 2019
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Statements in this presentation which are not purely historical facts or which depend upon future events may be forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the S
Slide 3: Financial Highlights of the Quarter
Financial Highlights of the Quarter Strong EPS SBH, SBS Gross Growth and and BSG Margin Lower SG&A Consensus Positive SSS Expansion Beat Sally Beauty Holdings, Inc.
Slide 4: Our Transformation Reflects the Industry
Our Transformation Reflects the Industry Changing Retail and Beauty Sector Sally Beauty Holdings’ Playbook Increased competition Playing to win with in the retail beauty our customers: Hair space Color & Care Increased investment Improving our in stores and retail technology fundamentals Transformat
Slide 5: Playing to Win in Color & Care: Building on Product
Playing to Win in Color & Care: Building on Product My Black Is Beautiful Maria Nila BlondMe Good Dye Young Olaplex No. 6 & No. 7 All About Curls Sally Beauty Holdings, Inc.
Slide 6: Retail Fundamentals Progressing
Sally Beauty Rewards Retail Fundamentals Progressing Loyalty Program JDA Merchandising and New Oracle POS System Supply Chain Platform Implemented Store Fulfillment Module 16M+ Active Members Rollout Complete in Over 2,000 stores & Began Full Testing in Select BSG Stores Sally Beauty Holdings, Inc.
Slide 7: Digital Commerce Implementations
Digital Commerce Implementations Refreshed BSG E-commerce Site Launch of the New Sally Mobile App
Slide 8: ColorView -- Color Before You Commit
ColorView -- “Color Before You Commit” ColorView Technology via the Sally Mobile App ColorView Kiosk Technology in Stores
Slide 9: Our Transformation Priorities
Our Transformation Priorities Build Based on Priorities Bricks & Mortar to Omnichannel Retailer 18 19 20 21 22 Segregated, Slow Distribution Nodes to Flexible Replenishment 18 19 20 21 22 Core Retail Operations From Brute Force Manual Process to Technology-Enabled 18 19 20 21 22 Old School “Supply”
Slide 10: Q4 Financial Highlights
Q4 Financial Highlights Gross Adjusted SSS SG&A% Margin EPS +1.1% 37.7% 49.6% $0.58 (1) Compared to PY: Up for SBH, SBS Increased 10 bps Down 20 bps Increase of 13.7% and BSG (1) Adjusted EPS is a non-GAAP measure. See Appendix for a reconciliation of this non-GAAP measure. Sally Beauty Holdings, In
Slide 11: FY19 Financial Highlights
FY19 Financial Highlights Gross Adjusted Adjusted SSS Margin SG&A% EPS +0.3% 49.3% 37.5% (1) $2.26 (2) Guidance for the Full-Year: Approximately Flat Approximately Flat Up Slightly Up Mid-Single Digits (1) Adjusted SG&A is a non-GAAP measure. See Appendix for a reconciliation of this non-GAAP measur
Slide 12: Scaled, Focused Experts, Not All Things to All People
Scaled, Focused Experts, Not “All Things to All People” Differentiated industry position: 1 hair color and hair care Equal Share with All Grocery; Just Below All Drug Strong owned and exclusive brand 44% Owned/Exclusive Brand (SBS) 2 penetration 53% Owned/Exclusive Brand (BSG) 3 North American a
Slide 13: Our Transformation Reflects the Industry
Our Transformation Reflects the Industry Changing Retail and Beauty Sector Sally Beauty Holdings’ Playbook Increased competition Playing to win with in the retail beauty our customers: Hair space Color & Care Increased investment Improving our in stores and retail technology fundamentals Transformat
Slide 14: Transformation Initiatives
Transformation Initiatives Completed in FY19 Continues in FY20 New in FY20 • Filled innovation pipeline with new brands • Expand innovation pipeline with clean, vegan • Rollout Private Label Credit Card Program • Launched box color/pro color kits color/care brands and men’s barbering • North Texas i
Slide 15: FY20 Full-Year Financial Guidance
FY20 Full-Year Financial Guidance Total Gross Revenue Up SG&A EPS & Adj. Margin Capital @ 1%-2%; Increase EPS Up Increase $120M SSS Up Modestly LSD - MSD Modestly 0.5%-1.5% Sally Beauty Holdings, Inc.
Slide 16: Appendix: Non-GAAP Financial Measures Reconciliations
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Non-GAAP Financial Measures Reconciliations, Continued (In thousands, except per share data) Appendix (Unaudited) Three Months Ended September 30, 2019 As Reported As Adjusted (GAAP) Restructuring (1) (Non-GAAP) Selling, general and administrative expense
Slide 17: Appendix: Non-GAAP Financial Measures Reconciliations
Appendix SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Non-GAAP Financial Measures Reconciliations, Continued (In thousands, except per share data) (Unaudited) Twelve Months Ended September 30, 2019 As Adjusted (1) As Reported Restructuring (Non-GAAP) Selling, general and administrative expenses $ 1,
Slide 18: Appendix: Operating Free Cash Flow Reconciliation
Appendix SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Non-GAAP Financial Measures Reconciliations, Continued (In thousands) (Unaudited) Three Months Ended September 30, Twelve Months Ended September 30, Percentage Percentage Operating Free Cash Flow: 2019 2018 Change 2019 2018 Change Net cash provid
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