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 — Q1 2022 Earnings Presentation
18 slides from Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.)'s earnings presentation, Feb 2, 2022
Slide 1: Sally Beauty Holdings, Inc. Fiscal 2022 Q1 Earnings Call
SALLY BEAUTY HOLDINGS, INC. FISCAL 2022 Q1 EARNINGS CALL February 2, 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 Q1 Earnings Call
SALLY BEAUTY HOLDINGS, INC. FISCAL 2022 Q1 EARNINGS CALL
Slide 4: Q1 Fiscal 2022 Highlights
Q1 Fiscal 2022 Highlights 1 Comparable Sales Growth of 6.1% 2 Net Sales Increased by 4.7% to $980M 3 Gross Margin Increased to 51.0%; a 70 Basis Point Increase vs. Q1 FY21 4 Adjusted EPS(1) of $0.63; a 26% Increase vs. Q1 FY21 (1) Adjusted EPS is a non-GAAP measure. See Appendix for a reconciliation
Slide 5: 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 6: Leveraging Our Digital Platform
Leveraging Our Digital Platform 1 Easy, Reliable Omni-Channel Platform for DIY Enthusiasts and Stylists BSG: Connected Cosmo Prof App to Store Network Enhancing BOPIS and 2- 2 Hour Delivery BSG: Refreshed Website Driving Increased Engagement and Higher 3 Customer Satisfaction Scores 4 Sally: Pilotin
Slide 7: Driving Loyalty and Personalization
Driving Loyalty and Personalization 1 Sally U.S. & Canada: 75% of Sales From Loyalty Members 2 BSG: Rewards Credit Card Users Are Now 9% of BSG Sales Leveraging Deep Customer Knowledge and Data to Drive Customer Insights, 3 Increase Personalization, and Build Stronger Connections with Customers Sall
Slide 8: Delivering Product Innovation
Delivering Product Innovation Vivid Color Line - Strawberry Leopard Gaining Traction Online and In-Store; 1 Line of Care Products Coming Soon 2 Launched the Dashing Diva Glaze and the Ion Luxe Turbo Charged Dryer Excellent Early Results from the BSG Launch of Olaplex’s New Toning 3 Shampoo 4 BSG Upc
Slide 9: Advancing Our Supply Chain
Advancing Our Supply Chain 1 Executing Final Phase of JDA Implementation 2 JDA Implemented in all BSG and Sally Stores Completing JDA Integration with Our North Texas Distribution Center 3 Leveraging New Capabilities to Drive 15%-20% Shorter Ship-to-Me 4 Fulfillment Times
Slide 10: Fiscal 2022 Q1 Earnings Call
SALLY BEAUTY HOLDINGS, INC. FISCAL 2022 Q1 EARNINGS CALL
Slide 11: Q1 Consolidated Financial Recap
Q1 Consolidated Financial Recap Net E-comm Gross Adj. Op. Adjusted Sales of Sales of Margin Margin EPS $980 $81M 51.0% 11.9% (1) $0.63 (3) Million Notes: Net Sales Up 4.7% 8.3% of Total Increase of 70 bps Adjusted EBITDA Compared to $0.50 Compared to PY Net Sales Compared to PY Margin 14.8% (2) In P
Slide 12: Q1 Sally Beauty Supply Financial Recap
Q1 Sally Beauty Supply Financial Recap Comp. E-comm Gross Operating Sales Sales Margin Margin +4.4% $32M 58.4% 17.9% Notes: Net Sales +2.5% 6% of Total Increase of 70 bps Increase of 50 bps Compared to PY Segment Sales Compared to PY Compared to PY Sally Beauty Holdings, Inc.
Slide 13: Q1 Beauty Systems Group Financial Recap
Q1 Beauty Systems Group Financial Recap Comp. E-comm Gross Operating Sales Sales Margin Margin +8.6% $49M 41.1% 14.0% Notes: Net Sales +7.8% 12% of Total Increase of 120 bps Increase of 150 bps Compared to PY Segment Sales Compared to PY Compared to PY Sally Beauty Holdings, Inc.
Slide 14: Balance Sheet & Cash Flow Summary
Balance Sheet & Cash Flow Summary Cash and Cash Equivalents of $298M at Quarter End 1 2 Inventory Increased 12% to Approximately $1B 3 Cash Flow from Operations a Net Use of Cash of $5.7M Repurchased 3.7M shares for an Aggregate Cost of $75M 4 Net Debt Leverage Ratio 1.87x 5
Slide 15: Reiterating Our Full Year Fiscal 2022 Guidance
Reiterating Our Full Year Fiscal 2022 Guidance Net Sales Growth in the Range of 3% to 4% 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 Operating Margin Growth of 90 to 110 Basis Points 4 Adjusting Operating Margin Ap
Slide 16: Fiscal 2022 Q1 Earnings Call
SALLY BEAUTY HOLDINGS, INC. FISCAL 2022 Q1 EARNINGS CALL
Slide 17: Non-GAAP Financial Measures Reconciliations
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 December 31, 2021 As Reported Restructuring and As Adjusted (1) (2) (GAAP) Other COVID-19 (Non-GAAP) Selling,
Slide 18: Non-GAAP Financial Measures Reconciliations, Continued
Supplemental Schedule 3 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Appendix Non-GAAP Financial Measures Reconciliations, Continued (In thousands) (Unaudited) Three Months Ended December 31, Percentage Adjusted EBITDA: 2021 2020 Change Net earnings $ 68,838 $ 57,191 20.4 % Add: Depreciation and amo
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