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Sally Beauty (SBH) Misses Q2 EPS by 3c; Announces CEO Succession Plan

May 1, 2014 9:13 AM EDT

Sally Beauty (NYSE: SBH) reported Q2 EPS of $0.36, $0.03 worse than the analyst estimate of $0.39. Revenue for the quarter came in at $919.5 million versus the consensus estimate of $932.84 million.

The company also announced a CEO succession plan. The Board approved the appointment of Christian A. Brickman as the Company’s new President and Chief Operating Officer effective June 2, 2014. At the request of the Board, Gary Winterhalter, the Company’s current Chairman, Chief Executive Officer and President will continue his management of the Company in his current roles as the Company’s Chairman of the Board and Chief Executive Officer through April 30, 2015 or such earlier date as the Board may determine, and will work with the Board and Mr. Brickman to facilitate a transition of his duties and responsibilities as Chief Executive Officer to Mr. Brickman during this period. Upon the successful transition of the role of Chief Executive Officer, Mr. Winterhalter has agreed to continue serving at the discretion of the Board as Executive Chairman of the Board through January 2018 performing such duties as are customary for that position and as are requested by the Chief Executive Officer or the Board. Mr. Brickman will continue to serve as a member of the Board.

“Overall performance was solid with positive consolidated same store sales growth of 1%, sales growth of 2.4% and 10 bps of gross margin expansion,” stated Gary Winterhalter, Chairman, President and Chief Executive Officer. “Extremely unfavorable weather in the U.S. resulted in 5,426 store days closed in the fiscal 2014 second quarter versus 1,328 in the prior year, resulting in lower traffic and sales growth in the U.S. Sally and CosmoProf stores. The good news is that we saw positive traffic performance in the regions that were not materially impacted by store closures which gives me confidence that we are on the right track to improve retail traffic in the Sally U.S. stores.”

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



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