Shares of Sally Magnificence Holdings (SBH -0.80%) plummeted by as a lot as 10% right this moment after the corporate reported fiscal first-quarter earnings. The outcomes had been blended in comparison with analyst expectations.
Income within the fiscal first quarter got here in at $936 million, lacking the Avenue’s forecast of $967.9 million in gross sales. That resulted in adjusted earnings per share of $0.50, beating the $0.47 per share in adjusted earnings the market was on the lookout for. Comparable retailer gross sales declined by 3.7% because of retailer closures in worldwide markets associated to the continuing pandemic.
“Our groups executed effectively each operationally and financially in a very difficult topline surroundings,” CEO Chris Brickman stated in an announcement. “Regardless of the disruption to gross sales from retailer closures and capability restrictions globally and salon shut-downs in California and components of Canada, we delivered robust gross margins above 50%, carefully managed bills and generated a 6% enhance in adjusted diluted earnings per share.”
On the finish of December, 55% of the Sally Magnificence’s corporate-owned shops had been open, 37% had been working at lowered capability, and eight% had been closed. The sweetness merchandise retailer didn’t present formal monetary steerage for the fiscal second quarter because of ongoing macroeconomic uncertainties associated to the general public well being disaster, however as a substitute supplied some commentary on the convention name with analysts.
“As a result of these [store closures] disruptions are persevering with and there’s nonetheless a substantial amount of uncertainty associated to potential restrictions going ahead, we count on web gross sales to say no in our second fiscal quarter, softening modestly from Q1 ranges,” Brickman stated. “Throughout this time, we’re remaining agile and our groups are operating the enterprise with operational and monetary rigor to protect profitability and prudently handle money.”
Evan Niu, CFA has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.