Sally Beauty Shares Spike On Q4 Earnings Beat

Sally Beauty Holdings Inc SBH reported fourth-quarter FY21 sales growth of 3.4% year-on-year, to $990.26 million, beating the analyst consensus of $974.82 million. Same-store sales increased 2.1%.
Net sales from the Sally Beauty Supply segment rose 1.5%, and the Beauty Systems Group improved 6.2%.
Adjusted EPS of $0.64 beat the analyst consensus of $0.51.
The gross profit margin contracted 50 basis points to 50.6%, while the gross profit rose 2.4% to $500.98 million.
The operating margin was 11.2%, and operating income for the quarter declined 7% to $111.2 million.
Sally Beauty held $401 million in cash and equivalents as of September 30, 2021. Cash provided by operating activities totaled $164 million.
Outlook: Sally Beauty sees FY22 net sales growth of 3% - 4% and gross margin to expand by 40 - 60 basis points compared to the prior year.
Price Action: SBH shares are trading higher by 10.8% at $20.1 on the last check Thursday.

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