UPDATE: Sally Beauty Posts Downbeat Q4 Earnings

Sally Beauty Holdings

reported a weaker-than-expected profit for the fiscal fourth quarter. The Denton, Texas-based company reported quarterly net income of $61.8 million, or $0.39 per share, compared to $64.8 million, or $0.38 per share, in the year-ago period. Its revenue climbed 4.2% to $944.3 million in the period. However, analysts were estimating earnings of $0.40 per share on revenue of $945.4 million. Sales for Sally Beauty Supply segment rose 4.5% to $581.3 million, while Beauty Systems Group sales gained 3.6% to $363.0 million from $350.3 million. Its same store sales rose 2.6% in the quarter, versus a 0.4% growth in the year-ago period. Consolidated gross profit rose to $467.5 million from $449.4 million. Adjusted EBITDA climbed 0.2% to $151.4 million in the quarter from $151.1 million. As of September 30, 2014, cash and cash equivalents were $106.6 million. During the quarter, Sally Beauty repurchased a total of 1.2 million shares of its common stock at an aggregate cost of $31.6 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.” The company expects FY15 consolidated same store sales growth to be slightly above 3%. Sally Beauty shares gained 2.48% to close at $29.37 yesterday.