Sally Beauty Holdings, Inc. has recently released its 10-K report, providing an in-depth look at its financial performance and business operations. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group, offering a wide range of beauty products to retail customers, salons, and salon professionals. The 10-K report for the fiscal year ended September 30, 2024, sheds light on the company's financial condition and results of operations, providing a comprehensive overview of its performance.
In the fiscal year ended September 30, 2024, Sally Beauty reported consolidated net sales of $3,717.0 million, representing a decrease of $11.1 million, or 0.3%, compared to the previous fiscal year. Notably, global e-commerce sales accounted for 9.8% of the consolidated net sales. The company also reported a 0.3% increase in consolidated comparable sales. However, consolidated gross profit decreased by $7.8 million, or 0.4%, to $1,890.3 million, with a gross margin remaining unchanged at 50.9% compared to the prior fiscal year. Additionally, consolidated operating earnings decreased by $42.3 million, or 13.0%, to $282.7 million, with an operating margin decreasing by 110 basis points to 7.6% compared to the prior fiscal year. Consolidated net earnings decreased by $31.2 million, or 16.9%, to $153.4 million, with diluted earnings per share for the fiscal year at $1.43 compared to $1.69 for the prior fiscal year.
The report also highlights the impact of recent global inflationary pressures on consumer and stylist shopping behavior, as well as the cost for products and services. Sally Beauty has adapted its promotional strategy and implemented measures to mitigate the impacts of inflation, including managing inventory levels, adjusting promotional activities, and expanding partnerships with delivery service providers.
Furthermore, the report provides detailed insights into key operating metrics, net sales performance for each segment, gross profit, selling, general and administrative expenses, restructuring, interest expense, provision for income taxes, liquidity, capital resources, and historical cash flows. Notably, the company's liquidity pool at September 30, 2024, stood at $590.5 million, including amounts available for borrowings under its ABL facility and cash and cash equivalents.
The report also outlines the company's share repurchase program, which saw the repurchase and retirement of approximately 5.1 million shares of common stock during fiscal year 2024, at a cost of $60.0 million. As of September 30, 2024, Sally Beauty had approximately $520.8 million of additional share repurchase authorization remaining under its Share Repurchase Program, which expires on September 30, 2025.
Following these announcements, the company's shares moved -4.2%, and are now trading at a price of $13.21. Check out the company's full 10-K submission here.
