For its fiscal first quarter ended December 31, Sally Beauty Holdings posted GAAP net earnings of $42.2 million, or 28 cents per diluted share, versus $54.9 million, or 35 cents per diluted share, in the year-earlier period.
With the exclusion of expenses from a loss on debt extinguishment and overlapping interest expense of $22 million, net of tax, and expenses from a data security incident as well as management transition expenses of $800,000, net of tax, the company asserted, adjusted net earnings for the fiscal 2016 first quarter were $65.1 million, or 43 cents per diluted share, versus $55.1 million, or 35 cents per diluted share, in the fiscal 2015 first quarter.
Sally Beauty surpassed a MarketBeat published analyst average estimate of 37 cents per diluted share.
Comparable store sales were up 3.9% versus last year’s quarter, the company reported.
Consolidated net sales were $998 million, up 3.5% from the fiscal 2015 first quarter, Sally Beauty stated, with the gain attributable to comp growth and incremental sales from new stores. Unfavorable impact from foreign currency exchange rate volatility in the quarter was $22.1 million, or 2.3% of sales, the company added.
Operating earnings, Sally Beauty noted, were $130.9 million versus $116.2 million in the 2014 quarter.
“We are off to a solid start for fiscal year 2016,” stated Chris Brickman, president and CEO, Sally Beauty. “We drove same store sales improvement in our Sally business, and our BSG business continued to grow sales and gain channel share. In addition, implementation of our pricing and margin improvement initiatives resulted in gross profit margin expansion consistent with our previously stated guidance. Looking forward, we are confident that we can deliver on our full year guidance. However, we anticipate the business may confront modest headwinds in Q2 as we launch our hair care solutions center in almost 3,000 Sally U.S. stores, invest in a significant TV campaign to re-engage retail consumers at Sally and ramp up new business development programs globally. Despite these short term challenges, we are excited about the upcoming initiatives and believe that they will help us accelerate growth.”