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 — Q2 2022 Earnings Presentation
19 slides from Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.)'s earnings presentation, May 5, 2022
Slide 1: Sally Beauty Holdings Fiscal 2022 Q2 Earnings Call
SALLY BEAUTY HOLDINGS, INC. FISCAL 2022 Q2 EARNINGS CALL May 5, 2022
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 Se
Slide 3: Fiscal 2022 Q2 Earnings Call
SALLY BEAUTY HOLDINGS, INC. FISCAL 2022 Q2 EARNINGS CALL
Slide 4: Q2 Fiscal 2022 Summary
Q2 Fiscal 2022 Summary 1 Positive Comparable Sales Growth 2 Net Sales Decreased by 1.6% With 142 Fewer Stores in Operation 3 Maintained Strong Gross Margins Over 51% 4 GAAP EPS of $0.42 per share; Adjusted EPS(1) of $0.47 (1) Adjusted EPS is a non-GAAP measure. See Appendix for a reconciliation of t
Slide 5: Loyal Customer Base
Loyal Customer Base 1 Sally US & Canada 17 Million Loyalty Members 76% of Sales are from Loyalty Members 83 Net Promotor Score with Loyalty Members 2 Beauty Systems Group Have Data on 100% of Customers Rewards Credit Card Represents 9% of Sales
Slide 6: Fiscal 2022 Strategic Growth Pillars
Fiscal 2022 Strategic Growth Pillars 1 Leveraging Our Digital Platform 2 Driving Loyalty and Personalization 3 Delivering Product Innovation 4 Advancing Our Supply Chain
Slide 7: Leveraging Our Digital Platform
Leveraging Our Digital Platform 1 Easy, Reliable Omni-Channel Platform for DIY Enthusiasts and Stylists E-Commerce Represents 8.9% of Total Sales with BSG E-Commerce Growing 2 by 37% Sally US & Canada Stores Fulfilled 37% of E-Commerce Sales with Strong 3 Performance from BOPIS and 2-Hour Delivery 4
Slide 8: Driving Loyalty and Personalization
Driving Loyalty and Personalization 1 Sally US & Canada: 76% of Sales From Loyalty Members Ranked a Top 10 Loyalty Program by Newsweek out of 238 Eligible 2 Programs 3 Rolled Out Individualized Journeys and Personalized Website Views Launched Marketing Mix Modeling to Measure ROI on Marketing 4 Inve
Slide 9: Delivering Product Innovation
Delivering Product Innovation Launched Urban Alchemy Customizable Hair Care in Q2 at Sally, Launching 1 in Q3 for BSG Planned Q3 Launches at Sally from Brands like Wella, Ouidad, and 2 Strawberry Leopard Positive Early Response to BSG’s Q2 Launch of Wella’s New “Shinefinity” 3 Brand 4 Rolling Out a
Slide 10: Advancing Our Supply Chain
Advancing Our Supply Chain 1 Leveraging Investments in Best-In-Class Merchandising Outside of Macro Supply Chain Issues, Making Progress on Being in Stock in 2 Color And Care Transforming Transportation Network to Pool Distribution 3 4 Piloting Overnight Deliveries in Several Markets
Slide 11: Fiscal 2022 Q2 Earnings Call
SALLY BEAUTY HOLDINGS, INC. FISCAL 2022 Q2 EARNINGS CALL
Slide 12: Q2 Consolidated Financial Recap
Q2 Consolidated Financial Recap Net Adj. E-comm Adj. Op. Adjusted Sales of Gross Sales of Earnings EPS $911 Margin $81M $90M (2) $0.47 (3) Million 51.4% (1) Notes: Net Sales down 1.6% 8.9% of Total Increase of 20 bps Adjusted Operating GAAP EPS $0.42 Compared to PY Net Sales Compared to PY Margin 9.
Slide 13: Q2 Sally Beauty Supply Financial Recap
Q2 Sally Beauty Supply Financial Recap Comp E-comm Gross Operating Sales Sales Margin Margin -0.5% $33M 58.8% 15.4% Notes: Net Sales -3.1% 6.3% of Total Increase of 40 bps Decrease of 300 bps Compared to PY Segment Sales Compared to PY Compared to PY 126 Fewer Stores in Operation Sally Beauty Holdin
Slide 14: Q2 Beauty Systems Group Financial Recap
Q2 Beauty Systems Group Financial Recap Comp E-comm Gross Operating Sales Sales Margin Margin +1.3% $48M 40.5% 11.9% Notes: Net Sales +0.5% 12.5% of Total Increase of 140 bps Decrease of 60 bps Compared to PY Segment Sales Compared to PY Compared to PY Sally Beauty Holdings, Inc.
Slide 15: Balance Sheet & Cash Flow Summary
Balance Sheet & Cash Flow Summary Cash and Cash Equivalents of $227M at Quarter End 1 2 $963M in Inventory; Flat to Q2 FY21 3 Repurchased $130M in Shares Fiscal YTD Net Debt Leverage Ratio 2.07x 4 Announced Intent to Repay $300M 8.75% Senior Secured 5 Notes on May 31
Slide 16: Revised Full Year Fiscal 2022 Guidance
Revised Full Year Fiscal 2022 Guidance Net Sales Projected to be Flat to Down 2% 1 Net Store Count to Decrease by 1% to 2%; Mainly from Sally 2 U.S. Stores 3 Gross Margin Expansion of 40 to 60 Basis Points GAAP & Adjusted Operating Margin of Approx. 11.0% 4
Slide 17: Fiscal 2022 Q2 Earnings Call
SALLY BEAUTY HOLDINGS, INC. FISCAL 2022 Q2 EARNINGS CALL
Slide 18: Appendix: Non-GAAP Financial Measures Reconciliations
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Appendix Non-GAAP Financial Measures Reconciliations (In thousands, except per share data) (Unaudited) Three Months Ended March 31, 2022 As Reported Restructuring and As Adjusted (GAAP) COVID-19 (1) Other (2) (Non-GAAP) Cost of products sold $ 446,055 $ (
Slide 19: Appendix: Supplemental Schedule
Supplemental Schedule 2 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Non-GAAP Financial Measures Reconciliations (In thousands, except per share data) Appendix (Unaudited) Three Months Ended March 31, 2022 As Reported Restructuring and As Adjusted (GAAP) COVID-19 (1) Other (2) (Non-GAAP) Cost of pro
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