Sally Beauty Q1 EPS Up, But Misses Estimates; Comps Rise - Quick Facts

(RTTNews) - Specialty retailer Sally Beauty Holdings Inc. (SBH) reported Thursday that its first-quarter net earnings declined 1.7 percent to $58.0 million from last year's $58.98 million. Earnings per share, however, grew 9.4 percent to $0.35 from last year's $0.32, with lower share count.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated net sales increased 3.9 percent to $940.46 million from prior year's $905.44 million. Analysts estimated revenues of $933.37 million for the quarter. The company attributed the sales increase to same store sales growth and the addition of new stores.

Same store sales increased 2.2 percent, compared to a 0.44 percent increase last year.

Adjusted EBITDA, a key earnings metric, was $149.6 million, an increase of 1.2 percent from $147.7 million a year ago.

Gary Winterhalter, Chairman, President and Chief Executive Officer, said, "I am pleased with same store sales growth in our Sally business of 0.9 percent and the sequential improvement when compared to fiscal 2013 third and fourth quarters which were down 0.8 percent and down 1.5 percent, respectively. The improvement was primarily due to an increase in traffic which gives me confidence that the return to our targeted marketing campaign and the introduction of new brands in our Sally U.S. business will continue to improve traffic results throughout the fiscal year."