Sally Beauty Holdings, Inc. has reported its financial results for the first quarter of fiscal 2025, showing a positive start to the year with continued top-line growth in both business segments and consolidated operating margin expansion.
In the first quarter, consolidated net sales increased by 0.7%, reaching $938 million, with consolidated comparable sales also increasing by 1.6%. The company's global e-commerce sales accounted for 10.6% of net sales, totaling $99 million.
The GAAP operating margin expanded by 330 basis points to 10.7%, while adjusted operating margin increased by 50 basis points to 8.4%. Cash flow from operations for the quarter was $33 million, with operating free cash flow amounting to $57 million.
The company repaid $41 million of term loan b debt and completed $10 million in share repurchases during the quarter.
For the same period, Sally Beauty Supply segment net sales were $525.4 million, a 0.4% increase from the prior year, with comparable sales increasing by 1.7%. The segment's GAAP gross margin increased by 100 basis points to 59.6%, and GAAP operating earnings were $79.9 million, representing a 2.9% increase.
Beauty Systems Group segment net sales were $412.4 million, a 1.1% increase from the prior year, with comparable sales increasing by 1.4%. The segment's GAAP gross margin increased by 30 basis points to 39.7%, and GAAP operating earnings were $50.5 million, representing a 13.1% increase.
Looking ahead, the company reiterates its full-year guidance for both comparable sales and adjusted operating margin, with consolidated net sales expected to be approximately 100 basis points lower than comparable sales due to the anticipated unfavorable impact from foreign exchange rates for fiscal year 2025.
The company's strong performance in the first quarter and its strategic initiatives position it well for continued growth and value creation for shareholders.
For more detailed financial information and guidance, interested parties can access the company's conference call and audio webcast to be held at approximately 7:30 a.m. Central Time on February 13, 2025, via the company’s website.
Sally Beauty Holdings, Inc. is a leader in professional hair color, distributing professional beauty supplies globally through its Sally Beauty Supply and Beauty Systems Group businesses. The market has reacted to these announcements by moving the company's shares 3.1% to a price of $9.46. For the full picture, make sure to review Sally Beauty's 8-K report.
