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 2025 Earnings Presentation
25 slides from Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.)'s earnings presentation, May 12, 2025
Slide 1: Sally Beauty Holdings, Inc. Investor Relations Presentation
SALLY BEAUTY HOLDINGS, INC. Investor Relations Presentation As of March 31, 2025
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: SBH Mission
SBH Mission To Recruit and Retain Beauty Customers by…. …Leveraging our Undisputed Expertise and Leadership in Professional Color/Care for the DIY Consumer and Professional
Slide 4: SBH At A Glance
SBH AT A $3.7B 50.9% $442M GLANCE Net Sales1 Gross Margin1 Adjusted EBITDA1 SEGMENTS SNAPSHOT #1 provider of professional color and #2 U.S. retailer of hair color for home use ~ 34% of sales from owned brands 16 million active, known customers in the U.S. and Canada #1 distributor for salons and sal
Slide 5: What Makes Us Different
What Makes Us Different Authority in Professional Hair Color and Care Categories 1 Differentiated, Sticky Customers 2 Expert in Education and Content 3 4 Unparallelled Brand Partnerships and Assortment 5 Cosmetologists and Trained Color Experts Sally Beauty Holdings, Inc.
Slide 6: Sally Beauty Highlights
Sally Beauty Highlights Leader in professional hair color for home-use Professional open-line business – merchandise assortment focused on owned and exclusive brands not available through mass retail Sally Beauty global footprint (1) 3,117 stores worldwide 2,304 US stores / 813 internation
Slide 7: Beauty Systems Group Highlights
Beauty Systems Group Highlights Leader in the professional distribution channel in the US/Canada Sells exclusively to salons and salon professionals at wholesale pricing Exclusive distributor of premium professional hair color and hair care brands used by stylists Over 80% of sales coming fr
Slide 8: FY24 Category Mix
FY24 Category Mix 1% 4% 8% 3% 11% Hair Color 17% Hair Color 40% Hair Care 40% Hair Care Nails 10% Nails Styling Tools & Supplies 42% 24% Styling Tools & Supplies Skins & Cosmetics Skin & Cosmetics Other FY24 FY24 FY24 FY24 FY24 FY24 Sales of GM EBIT % Sales of GM EBIT % $2.1B 59.7% 15.9% $1.6B 39.3%
Slide 9: Our Strategic Pillars
OUR STRATEGIC PILLARS Our Purpose: to inspire a more colorful, confident, and welcoming world Customer Innovation & Own Brands Centricity Our Strategy Understand & Activate the Customer Be the best partner in Beauty to Deliver Growth Unlock and Harvest Digital Value Differentiate with Assort
Slide 10: Increase Sally's Owned Brand Penetration
GROWING HIGH MARGIN OWNED BRANDS Increase Sally’s owned brand penetration from 34% to over 50%
Slide 11: Growing High Margin Owned Brands
GROWING HIGH MARGIN OWNED BRANDS NEW!
Slide 12: Innovating New Ideas & Concepts
Innovating New Ideas & Concepts Sally Brand and Store Refresh 1. Brand marketing refresh rolling out back half FY25 across brand media, in-store signage & digital experiences 2. Store refreshes currently testing in 8 Orlando stores with another 20+ plus added before end of fiscal 2025 3. Potential o
Slide 13: Experience, Environment, Merchandise, Brands
EXPERIENCE: Within the industry and our extensive capabilities across product, operations, sourcing and supply chain to bring something truly unique to the market ENVIRONMENT: An accessible, fun and expressive environment MERCHANDISE: Priced under $10 and product offerings encompass 4 key categories
Slide 14: Increasing Operational Efficiency
Increasing Operational Efficiency Optimizing Capabilities Launched a Fuel for Growth initiative to support our long-term operating 1 profit objectives Fuel for Growth delivered $28 million benefit across gross margin and SG&A 2 in FY24 Fuel for Growth expected to deliver $40+ million benefit in FY25
Slide 15: Financial Overview
Financial Overview Sally Beauty Holdings, Inc.
Slide 16: Consolidated Fiscal 2024 Results
Consolidated Fiscal 2024 Results Net Sales Gross Margin Gross Margin 59.7% 39.3% Operating Margin 15.9% 11.1% Sally Beauty Holdings, Inc. (1) See Addendum for a reconciliation of this non-GAAP financial measure.
Slide 17: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Ample liquidity Long-Term Capital Structure AMOUNT % OF $92 million of cash and cash equivalents ($MM) TOTAL DEBT TERM LOAN B (FY30) $317.0 35% on balance sheet (1) 6.75% SENIOR NOTES (FY32) $600.0 65% TOTAL DEBT $917.0 100% No balance outstanding on $500 mil
Slide 18: Strong Cash Flow Generation
Strong Cash Flow Generation SBH Free Cash Flow ($m) (1) Cash conversion (%) (2) 41% 49% 40% 72% 54% 11% 35% 33% $316 (3) $308 (3) $287 $254 $228 $159 $145 $57 (3) 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024A (1) Free Cash Flow defined as cash flow from operations minus capital expenditures; See A
Slide 19: Focused on Long-Term Profitable Growth
Focused on Long-Term Profitable Growth Sticky Customers 1 Growing Profitable Business Gross Margin 50%+ 2 Strong Cash Flow Generation 3 Increasing Shareholder Value Resilient Business Model Focus on Professional Hair Color, Hair Care and Nails Sally Beauty Holdings, Inc.
Slide 20: Long-Term Economic Model
Long-Term Economic Model Low to Mid Low Double- Single-Digit 50%+ Gross SG&A Digit Net Sales Margin Leverage Operating Growth Margins Strong Cash Flow Generation Sally Beauty Holdings, Inc.
Slide 21: Capital Allocation Priorities
Capital Allocation Priorities 1 Maintain Strong Liquidity Position 2 Invest in Our Strategic Growth Initiatives 3 Optimize Our Capital Structure 4 Return Value to Shareholders Sally Beauty Holdings, Inc.
Slide 22: Executive Management Team
Executive Management Team Denise Paulonis Marlo Cormier John Goss Mark Spinks Olivier Badezet Senior Vice President & President and CEO Senior Vice President, CFO President – Sally Beauty Supply President - Beauty Systems Managing Director Europe Group Scott Lindblom Scott Sherman Joe Bowe Natalie L
Slide 23: Key Considerations
Key Considerations 1 #1 Seller of Professional Color Globally 2 Transformed Business Model 3 Positioned to Drive Scale 4 Strong Cash Flow Generation 5 Experienced Management Team Sally Beauty Holdings, Inc.
Slide 24: Appendix
APPENDIX Sally Beauty Holdings, Inc.
Slide 25: EBITDA & FCF Reconciliation
EBITDA & FCF Reconciliation Adjusted EBITDA FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Net Earnings (GAAP) $ 215.1 $ 258.0 $ 271.6 $ 113.2 $ 239.9 $ 183.6 $ 184.6 $ 153.4 Interest expense, net of interest income 132.9 98.2 96.3 98.8 93.4 93.5 73.0 76.4 Provision for income taxes 130.6 70.4 90.5 46.7 85
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