ablokhin/iStock Editorial via Getty Images
Commentary on Sally Beauty Holdings’ (NYSE:SBH) earnings call reversed the course for shares on Thursday.
The stock initially rose after topping Q2 expectations and highlighting strong comparable sales growth. Yet, management noted in the ensuing conference call that consumers are beginning to tighten their belts and provided detail on a projected decline in net sales for the year as compared to 2022.
Management flagged “some softening in transactions and tickets” into April, highlighting some caution in the maintenance of guidance despite a beat on top and bottom lines for Q1. Management expects net sales to decline by low-single digits amid store closures and optimization efforts. Gross margin is expected to remain above 50% and adjusted operating margin is expected to be in the range of 8.5% and 9.5%.
Shares of Sally Beauty (SBH) slid 12.91% near Thursday’s close.
Read more on the details of Q2.
