Sally Beauty Holdings (NYSE: SBH) reported Q1 EPS of $0.57, $0.04 better than the analyst estimate of $0.53. Revenue for the quarter came in at $989.5 million versus the consensus estimate of $992.77 million.

• Consolidated Same Store Sales Increased by 0.3%
• Sally Beauty Supply Delivers Positive Same Store Sales - Increased by 0.7%; Beauty Systems Group Same Store Sales Trend Improves - Decreased by 0.6%
• Global E-Commerce Sales Increased by 34.4% versus Prior Year
• GAAP Diluted EPS of $0.54; Decreased by 16.9% versus Prior Year (Due to One-Time U.S. Tax Reform Benefits)
• Adjusted Diluted EPS of $0.57; Growth of 11.8% versus Prior Year
• FY19 Guidance Maintained; Multi-Quarter Transformation Plan on Track
• Company Announces First Phase of Supply Chain Modernization Effort

“We are making steady progress against our transformation plan and remain on track with our plans for the remainder of the fiscal year,” said Chris Brickman, president and chief executive officer.

“Our North American retail business, within Sally Beauty Supply, has been leading the charge with respect to our refocus on color and care, our pricing and promotional changes, our new loyalty program and other elements of our owned brand, new product and store execution change agenda. As a result, that business had improved holiday performance on both the top and bottom line. At the same time, our Beauty Systems Group team made solid progress improving our in-stock position on key brands while launching differentiated new products. These efforts, which are already underway, combined with ongoing changes to our marketing and promotional approach, will contribute to improved sales and margin performance over time,” Brickman concluded.

Fiscal Year 2019 Guidance

The Company is maintaining its full-year guidance as previously reported on November 8, 2018, and repeated below.

• The Company expects full year consolidated same store sales to be approximately flat.
• Full year gross margin is expected to be approximately flat compared to the prior year.
• Full year selling, general and administrative expenses (including depreciation and amortization expense) as a percentage of sales are expected to be down slightly due to lower restructuring charges as compared to the prior year.
• Full year adjusted selling, general and administrative expenses (including depreciation and amortization expense) as a percentage of sales are expected to be up slightly versus the prior year, as a result of timing of investments being made in the business, partially offset as operating efficiencies start to reach full run rate status toward the second half of fiscal year 2019.
• Full year GAAP operating earnings and operating margin are expected to increase by mid-single digits, primarily due to an improvement in sales and lower restructuring costs as compared to the prior year.
• Full year adjusted operating earnings and operating margin are expected to decline slightly as compared to the prior year, driven primarily by an improvement in same store sales offset by the slightly higher adjusted selling, general and administrative expenses referred to above.
• The Company expects the consolidated effective tax rate for the year to be approximately 27%.
• Lower average share count and lower interest expense from reduced indebtedness should result in mid-single digit growth in both full year GAAP diluted earnings per share and full year adjusted diluted earnings per share.
• Capital expenditures for the full year are expected to be approximately $120 million, which already includes those elements of the supply chain transformation plan which will occur in 2019.
• Cash flow from operations for the full year is expected to be approximately $340 million, reflecting an effort to speed payments to vendors to achieve cost of good savings. Operating free cash flow is expected to be approximately $220 million.

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