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 2022 Earnings Presentation
21 slides from Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.)'s earnings presentation, Nov 10, 2022
Slide 1: Fiscal 2022 Q4 Earnings Call
SALLY BEAUTY HOLDINGS, INC. FISCAL 2022 Q4 EARNINGS CALL November 10, 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 Q4 Earnings Call
SALLY BEAUTY HOLDINGS, INC. FISCAL 2022 Q4 EARNINGS CALL
Slide 4: Fiscal 2022 Highlights
Fiscal 2022 Highlights Consolidated net sales of $3.8 billion, maintained gross margins in excess of 1 50%, and delivered adjusted EBITDA over $500 million(1) Forefront of product innovation through strong partnerships with premier 2 brands (Wella, Matrix, Joico) and owned brands (Ion & Strawberry L
Slide 5: Fiscal 2022 Highlights Continued
Fiscal 2022 Highlights Continued Improved personalization and customer conveniences including the new 5 Virtual Color Expert and 2-hour delivery Advanced our supply chain with improved in-stock levels and increased 6 speed to market 7 Expanded our distribution partnership with Regis to cover 5,000+
Slide 6: Strategic Initiatives
Strategic Initiatives Enhancing Our Customer Centricity 1 Growing High Margin Owned Brands and Amplifying 2 Innovation Increasing Operational Efficiency and Optimizing Our 3 Capabilities
Slide 7: Enhancing Our Customer Centricity | BSG
ENHANCING OUR CUSTOMER CENTRICITY | BSG Get Started Partnering with SalonHQ whose customizable digital storefront platform gives our stylists the ability to curate a product selection specifically for their customers SalonHQ provides the platform; Cosmo Prof fulfills orders; stylists earn a commissi
Slide 8: Virtual Color Expert / In-Store Experience
ENHANCING OUR CUSTOMER CENTRICITY | SALLY Virtual Color Expert / In-Store Experience Engagement Virtual Consultation iPad rolling stand moves with customers • Beauty Advisor essential to connect client with VCE – mimics live shopping experience • New Associates build confidence and knowledge through
Slide 9: Launching Studio by Sally
ENHANCING OUR CUSTOMER CENTRICITY | SALLY Launching Studio by Sally, a Sally Beauty concept store focused on educating customers how to color their own hair
Slide 10: Studio by Sally pilot and rollout plan
ENHANCING OUR CUSTOMER CENTRICITY | SALLY Initial pilot in 6 stores in 2023 with the potential to roll out to more than 100 stores over the next 3-4 years
Slide 11: Increase Sally's owned brand penetration from 33% to over 50%
GROWING HIGH MARGIN OWNED BRANDS Increase Sally’s owned brand penetration from 33% to over 50%
Slide 12: Growing High Margin Owned Brands: New!
GROWING HIGH MARGIN OWNED BRANDS NEW!
Slide 13: Increasing Operational Efficiency, Optimizing Capabilities
Increasing Operational Efficiency Optimizing Capabilities Conducted a 90-store optimization pilot in 2022 where sales transfer rates 1 exceeded internal targets Announcing our plan to close an additional ~350 locations, the majority of 2 which will be effective in December 2022 and Sally stores in t
Slide 14: Fiscal 2022 Q4 Earnings Call
SALLY BEAUTY HOLDINGS, INC. FISCAL 2022 Q4 EARNINGS CALL
Slide 15: Q4 Consolidated Financial Recap
Q4 Consolidated Financial Recap Adj. Net E-comm Adj. Adjusted Gross Sales Sales EBITDA EPS Margin $962M $90M $112M (2) $0.50 (3) 50.1% (1) Notes: Net Sales down 2.8% 9.3% of Total Decrease of 60 bps Adjusted Operating GAAP EPS $0.20 Compared to PY; Net Sales Compared to PY Margin 8.7% (4) Comp Sales
Slide 16: Q4 Sally Beauty Supply Financial Recap
Q4 Sally Beauty Supply Financial Recap Adj. E-comm Operating Net Sales Gross Sales Margin -5.4% Margin $33M 14.5% 58.3% Notes: 110 Fewer Stores & Up 20% from PY; Increase of 60 bps Decrease of 360 bps Unfavorable FX Impact 6.0% of Segment Compared to PY Compared to PY of 270 bps Sales Comp Sales -1%
Slide 17: Q4 Beauty Systems Group Financial Recap
Q4 Beauty Systems Group Financial Recap Adj. E-comm Operating Net Sales Gross Sales Margin +1.0% Margin $57M 8.0% 38.9% Notes: Lost Sales of $5M or Up 37% from PY Decrease of 180 bps Decrease of 520 bps 120 bps Impact Compared to PY Compared to PY from Supply Chain 13.9% of Total Headwinds Segment S
Slide 18: Balance Sheet & Cash Flow Summary
Balance Sheet & Cash Flow Summary Cash and cash equivalents of $71M and $69M balance on asset- 1 based revolving line of credit at quarter end Net debt leverage ratio 2.2x 2 Inventories of $936M, down from just over $1B at the end of Q3 3 Free cash flow of $75M in Q4; $57M for the full year (1) 4 (1
Slide 19: Full Year Fiscal 2023 Guidance
Full Year Fiscal 2023 Guidance Comparable sales expected to increase by low single digits 1 Net sales expected to decline by low single digits due to store 2 optimization plan (150-200 bps) and FX headwinds (150 bps) Gross margin expected to remain above 50% 3 4 Adjusted operating margin expected to
Slide 20: Appendix: 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) (Unaudited) Appendix Three Months Ended September 30, 2022 As Adjusted (1) As Reported Restructuring (Non-GAAP) Cost of products sold $ 498,964 $ (18
Slide 21: Appendix: Non-GAAP Reconciliations, Continued
Appendix Supplemental Schedule 4 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 Adjusted EBITDA: 2022 2021 Change 2022 2021 Change
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