Sally Beauty Holdings, Inc. (SBH) Misses Q4 EPS by 1c

Sally Beauty Holdings, Inc. (NYSE: SBH) reported Q4 EPS of $0.39, $0.01 worse than the analyst estimate of $0.40. Revenue for the quarter came in at $944 million versus the consensus estimate of $945.38 million.

“In the fiscal 2014 fourth quarter, we delivered financial results in line with our expectations,” stated Gary Winterhalter, Chairman and Chief Executive Officer. “Same store sales growth in our Sally segment steadily improved throughout fiscal 2014 from 0.9% in the first quarter to reach 2.1% in the fourth quarter. We are optimistic that this trend will continue in fiscal 2015 as we benefit from the investments we’ve made to strengthen our marketing and brand differentiation to our customers. In fiscal year 2014, we generated $316 million in operating cash flow and repurchased approximately $333 million, or 13 million shares of our common stock. The recent announcement of our three-year, $1.0 billion authorization underscores our commitment to return excess cash flow in the form of stock buyback.”

Fiscal Year 2015 Outlook

• Consolidated same store sales growth for fiscal 2015 is expected to be slightly above 3%. Same store sales growth in the fiscal 2015 first quarter may fall below the full year estimate as sequential, quarterly improvement is expected throughout the year.
• Consolidated gross profit margin expansion is expected to be in the range of 20 bps to 30 bps.
• Fiscal year 2015 unallocated corporate expenses, including approximately $19 million in share-based compensation, are expected to be in the range of $140 million to $145 million.
• Consolidated SG&A as a percent to sales, including unallocated expenses, is expected to be flat or slightly higher than fiscal 2014 GAAP metric of 33.9%. The fiscal 2015 outlook includes approximately $10 million of investments in business opportunities such as LoxaBeauty, growth in South America and new business development.
• The effective tax rate for fiscal year 2015 is expected to be in the range of 37.5% to 38.5%.
• Capital expenditures for fiscal year 2015 are projected to be in the range of $95 million to $100 million.
• Consolidated organic store growth is expected to be in the range of 3% to 4%.

For earnings history and earnings-related data on Sally Beauty Holdings, Inc. (SBH) click here.

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