Sally Beauty Holdings Reports Q4 and Full Year Fiscal 2023 Results

Sally Beauty Holdings, Inc., a leader in professional hair color, announced financial results for its fourth quarter and full year ended September 30, 2023. 

 

“We are pleased to report full year financial results in line with the expectations we laid out at the beginning of fiscal 2023,” said Denise Paulonis, president and chief executive officer. “We drove a comparable sales gain, maintained healthy gross margins and generated strong cash flow from operations against a rapidly shifting backdrop. We also advanced our consumer-centric strategies during the year, launching new concepts and bringing new services to the market, while delivering unparalleled product innovation to both our Sally and BSG customers.”

 

Consolidated net sales in Q4 2023 were $921 million, a decrease of 4.3% compared to the prior year. Global e-commerce sales were $87 million, representing 9.4% of net sales.

 

GAAP gross margin increased 240 basis points to 50.6%, driven primarily by the prior year’s non-cash inventory write-down of $19.4 million related to the distribution center consolidation and store optimization plan. Adjusted gross margin increased 50 basis points to 50.6%.

 

Cash flow from operations of $117 million and operating free cash flow of $90 million was reported.

 

For FY2023, consolidated net sales were $3.73 billion, a decrease of 2.3% compared to the prior year, primarily driven by the company’s store optimization plan.

 

Global e-commerce sales were $348 million, representing 9.3% of net sales. GAAP gross margin increased 60 basis points to 50.9% and adjusted gross margin decreased 10 basis points to 50.8%.

 

Cash flow from operations of $249 million and operating free cash flow of $159 million was reported.

 

Paulonis said the company’s teams are executing well on its strategic initiatives designed to reignite top-line growth and improve profitability. This consists of enhancing customer centricity, growing its high margin own brands and amplifying innovation, and increasing the efficiency of its operations. 

 

“Building on our strong foundation, we are focused on the future and remain committed to creating value for our shareholders,” he said.