Sally Beauty Holdings recorded third-quarter profits that beat a Wall Street estimate, and the Sally Beauty business segment advanced despite flat overall comp sales.
Net earnings were $54.1 million, or 55 cents per diluted share, versus $45.7 million, or 44 cents per diluted share, in the year-earlier quarter. Adjusted for one-time events, net earnings were $54.2 million, or 55 cents per share, versus $52.4 million, or 51 cents per diluted share, in the period a year prior, the company noted.
An analyst consensus estimate from Zacks Investment Research called for earnings per adjusted diluted share of 53 cents and revenues of $936.2 million.
Consolidated comparable sales were flat as net sales increased 0.2% to $935.5 million year over year in the quarter, Sally Beauty noted. E-commerce sales increased 11% to $110 million versus the year-before period.
Operating earnings were $86.4 million versus $78.2 million in the year-previous quarter, the company stated, while adjusted operating earnings were $86.6 million versus $86.1 million.
In the Sally Beauty segment, net sales were $538.6 million versus $526.8 million, and operating earnings were $89.4 million versus $83.3 million versus the year-past quarter. Comparable sales gained 1.6% year over year, the company reported.
In the Beauty Systems Group, net sales were $396.9 million versus $406.5 million, and operating earnings were $49 million versus $50.7 million in the year-past period. Comps declined 2.1% year over year.
Sally Beauty updated its full-year guidance on consolidated net sales to $3.725 billion to $3.733 billion from $3.725 billion to $3.75 billion, and on adjusted diluted EPS to $2.04 to $2.08 from $2.02 to $2.10.
“Our third-quarter results reflect the progress we are making against our long-term strategy and the underlying strength of our operating model,” said Denise Paulonis, president and CEO. “We delivered solid EPS growth and strong cash flow while continuing to invest in the initiatives that are reshaping our customer experience, expanding our reach and strengthening our competitive position. Sally U.S. and Canada delivered another strong quarter with 3.5% comparable sales growth, supported by the strength of hair color, digital growth and new customer acquisition. Importantly, the traction we are seeing across our strategic initiatives has helped drive 9% adjusted EPS growth year-to-date, underscoring our ability to deliver profitable growth while investing in the future.”
