Sally Beauty (SBH) reported earnings on Thur 2 Feb 2017 (b/o)

** charts before earnings **

 

** charts after earnings **

 

Sally Beauty misses by $0.06, misses on revs; tempers 2017 revenue and gross margin guidance :

• Reports Q1 (Dec) earnings of $0.39 per share, $0.06 worse than the Capital IQ Consensus of $0.45; revenues rose 0.2% year/year to $999.6 mln vs the $1015.34 mln Capital IQ Consensus.
  • Gross margin for the quarter was 49.2%, a decline of 30 basis points from the prior year's first quarter due to unfavorable product and customer mix shift, lower vendor allowances and higher promotions than the prior year.
• Revised 2017 guidance:
  • The Company now expects full year same store sales in the range of flat to low-single-digit growth versus prior guidance of approximately 3%. Consensus calls for +2.5% revenue growth.
  • Net new store openings are expected to grow in the range of 2.0% to 3.0%, unchanged from prior guidance.
  • Full year consolidated gross margin is now expected to expand in the range of 20 to 30 basis points versus prior guidance of gross margin expansion in the range of 30 to 40 basis points.
  • Including the Restructuring Plan and other cost reduction initiatives, the Company now expects adjusted SG&A in the range of 34.1% to 34.4% of sales and adjusted operating income growth in the low-to-mid single digits in fiscal 2017.