Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | SALLY BEAUTY HOLDINGS, INC. | |
Entity Central Index Key | 0001368458 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2023 | |
Trading Symbol | SBH | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 1-33145 | |
Entity Tax Identification Number | 36-2257936 | |
Entity Address, Address Line One | 3001 Colorado Boulevard | |
Entity Address, City or Town | Denton | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76210 | |
City Area Code | 940 | |
Local Phone Number | 898-7500 | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 107,554,671 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 61,620 | $ 70,558 |
Trade accounts receivable, net | 30,540 | 34,102 |
Accounts receivable, other | 45,123 | 38,175 |
Inventory | 1,023,656 | 936,374 |
Other current assets | 48,072 | 53,192 |
Total current assets | 1,209,011 | 1,132,401 |
Property and equipment, net of accumulated depreciation of $841,760 at March 31, 2023, and $820,811 at September 30, 2022 | 283,356 | 297,876 |
Operating lease assets | 562,336 | 532,177 |
Goodwill | 534,218 | 526,066 |
Intangible assets, excluding goodwill, net of accumulated amortization of $29,921 at March 31, 2023, and $26,794 at September 30, 2022 | 50,533 | 50,315 |
Other assets | 35,660 | 38,032 |
Total assets | 2,675,114 | 2,576,867 |
Current liabilities: | ||
Current maturities of long-term debt | 38,175 | 68,658 |
Accounts payable | 265,075 | 275,717 |
Accrued liabilities | 168,187 | 161,065 |
Current operating lease liabilities | 154,255 | 157,734 |
Income taxes payable | 4,949 | 4,740 |
Total current liabilities | 630,641 | 667,914 |
Long-term debt | 1,065,439 | 1,083,043 |
Long-term operating lease liabilities | 444,819 | 424,762 |
Other liabilities | 22,044 | 22,427 |
Deferred income tax liabilities, net | 86,283 | 85,085 |
Total liabilities | 2,249,226 | 2,283,231 |
Stockholders’ equity: | ||
Common stock, $0.01 par value. Authorized 500,000 shares; 107,556 and 107,024 shares issued and 107,549 and 106,970 shares outstanding at March 31, 2023, and September 30, 2022, respectively | 1,076 | 1,070 |
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued | ||
Additional paid-in capital | 13,790 | 4,241 |
Accumulated earnings | 531,370 | 440,172 |
Accumulated other comprehensive loss, net of tax | (120,348) | (151,847) |
Total stockholders’ equity | 425,888 | 293,636 |
Total liabilities and stockholders’ equity | $ 2,675,114 | $ 2,576,867 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Statement Of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation (in dollars) | $ 841,760 | $ 820,811 |
Intangible assets, excluding goodwill, accumulated amortization (in dollars) | $ 29,921 | $ 26,794 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, Authorized shares | 500,000,000 | 500,000,000 |
Common stock, shares issued | 107,556,000 | 107,024,000 |
Common stock, shares outstanding | 107,549,000 | 106,970,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, Authorized shares | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 918,712 | $ 911,387 | $ 1,875,767 | $ 1,891,638 |
Cost of goods sold | 450,373 | 446,055 | 918,854 | 926,177 |
Gross profit | 468,339 | 465,332 | 956,913 | 965,461 |
Selling, general and administrative expenses | 389,657 | 378,871 | 781,237 | 765,121 |
Restructuring | 7,274 | 17,680 | 1,099 | |
Operating earnings | 71,408 | 86,461 | 157,996 | 199,241 |
Interest expense | 16,685 | 19,896 | 34,608 | 40,137 |
Earnings before provision for income taxes | 54,723 | 66,565 | 123,388 | 159,104 |
Provision for income taxes | 13,862 | 19,757 | 32,190 | 43,458 |
Net earnings | $ 40,861 | $ 46,808 | $ 91,198 | $ 115,646 |
Earnings per share: | ||||
Basic | $ 0.38 | $ 0.43 | $ 0.85 | $ 1.05 |
Diluted | $ 0.37 | $ 0.42 | $ 0.83 | $ 1.03 |
Weighted-average shares: | ||||
Basic | 107,453 | 108,743 | 107,294 | 110,387 |
Diluted | 109,706 | 110,540 | 109,499 | 112,207 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 40,861 | $ 46,808 | $ 91,198 | $ 115,646 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 9,445 | (2,752) | 35,386 | (7,261) |
Interest rate caps, net of tax | (2,163) | (1,960) | 278 | |
Foreign exchange contracts, net of tax | (1,017) | (324) | (1,927) | 156 |
Other comprehensive income (loss), net of tax | 6,265 | (3,076) | 31,499 | (6,827) |
Total comprehensive income | $ 47,126 | $ 43,732 | $ 122,697 | $ 108,819 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Earnings | Accumulated Other Comprehensive Loss |
Balance at Sep. 30, 2021 | $ 280,741 | $ 1,129 | $ 17,286 | $ 356,967 | $ (94,641) |
Balance (in shares) at Sep. 30, 2021 | 112,913 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 68,838 | 68,838 | |||
Other comprehensive income (loss) | (3,751) | (3,751) | |||
Share-based compensation | 3,958 | 3,958 | |||
Stock issued for equity awards | 7,372 | $ 8 | 7,364 | ||
Stock issued for equity awards (in shares) | 795 | ||||
Employee withholding taxes paid related to net share settlement | (1,137) | $ (1) | (1,136) | ||
Employee withholding taxes paid related to net share settlement (in shares) | (56) | ||||
Repurchases and cancellations of common stock | (75,000) | $ (36) | (27,472) | (47,492) | |
Repurchases and cancellations of common stock (in shares) | (3,675) | ||||
Balance at Dec. 31, 2021 | 281,021 | $ 1,100 | 378,313 | (98,392) | |
Balance (in shares) at Dec. 31, 2021 | 109,977 | ||||
Balance at Sep. 30, 2021 | 280,741 | $ 1,129 | 17,286 | 356,967 | (94,641) |
Balance (in shares) at Sep. 30, 2021 | 112,913 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 115,646 | ||||
Other comprehensive income (loss) | (6,827) | ||||
Balance at Mar. 31, 2022 | 271,866 | $ 1,069 | 372,265 | (101,468) | |
Balance (in shares) at Mar. 31, 2022 | 106,930 | ||||
Balance at Dec. 31, 2021 | 281,021 | $ 1,100 | 378,313 | (98,392) | |
Balance (in shares) at Dec. 31, 2021 | 109,977 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 46,808 | 46,808 | |||
Other comprehensive income (loss) | (3,076) | (3,076) | |||
Share-based compensation | 2,032 | 2,032 | |||
Stock issued for equity awards | 424 | $ 1 | 423 | ||
Stock issued for equity awards (in shares) | 111 | ||||
Employee withholding taxes paid related to net share settlement | (15) | (15) | |||
Employee withholding taxes paid related to net share settlement (in shares) | (1) | ||||
Repurchases and cancellations of common stock | (55,328) | $ (32) | (2,440) | (52,856) | |
Repurchases and cancellations of common stock (in shares) | (3,157) | ||||
Balance at Mar. 31, 2022 | 271,866 | $ 1,069 | 372,265 | (101,468) | |
Balance (in shares) at Mar. 31, 2022 | 106,930 | ||||
Balance at Sep. 30, 2022 | $ 293,636 | $ 1,070 | 4,241 | 440,172 | (151,847) |
Balance (in shares) at Sep. 30, 2022 | 106,970 | 106,970 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | $ 50,337 | 50,337 | |||
Other comprehensive income (loss) | 25,234 | 25,234 | |||
Share-based compensation | 5,135 | 5,135 | |||
Stock issued for equity awards | 82 | $ 4 | 78 | ||
Stock issued for equity awards (in shares) | 404 | ||||
Employee withholding taxes paid related to net share settlement | (1,126) | $ (1) | (1,125) | ||
Employee withholding taxes paid related to net share settlement (in shares) | (90) | ||||
Balance at Dec. 31, 2022 | 373,298 | $ 1,073 | 8,329 | 490,509 | (126,613) |
Balance (in shares) at Dec. 31, 2022 | 107,284 | ||||
Balance at Sep. 30, 2022 | $ 293,636 | $ 1,070 | 4,241 | 440,172 | (151,847) |
Balance (in shares) at Sep. 30, 2022 | 106,970 | 106,970 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | $ 91,198 | ||||
Other comprehensive income (loss) | 31,499 | ||||
Balance at Mar. 31, 2023 | $ 425,888 | $ 1,076 | 13,790 | 531,370 | (120,348) |
Balance (in shares) at Mar. 31, 2023 | 107,549 | 107,549 | |||
Balance at Dec. 31, 2022 | $ 373,298 | $ 1,073 | 8,329 | 490,509 | (126,613) |
Balance (in shares) at Dec. 31, 2022 | 107,284 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 40,861 | 40,861 | |||
Other comprehensive income (loss) | 6,265 | 6,265 | |||
Share-based compensation | 3,838 | 3,838 | |||
Stock issued for equity awards | 1,641 | $ 3 | 1,638 | ||
Stock issued for equity awards (in shares) | 266 | ||||
Employee withholding taxes paid related to net share settlement | (15) | (15) | |||
Employee withholding taxes paid related to net share settlement (in shares) | (1) | ||||
Balance at Mar. 31, 2023 | $ 425,888 | $ 1,076 | $ 13,790 | $ 531,370 | $ (120,348) |
Balance (in shares) at Mar. 31, 2023 | 107,549 | 107,549 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net earnings | $ 91,198 | $ 115,646 |
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 50,347 | 48,471 |
Share-based compensation expense | 8,973 | 5,990 |
Amortization of deferred financing costs | 1,311 | 1,865 |
Loss on early extinguishment of debt | 601 | |
Impairment of long-lived assets, including operating lease assets | 1,765 | |
Loss on disposal of equipment and other property | 2 | 80 |
Deferred income taxes | 862 | 6,507 |
Changes in (exclusive of effects of acquisitions): | ||
Trade accounts receivable | 4,632 | 3,800 |
Accounts receivable, other | (5,805) | 2,108 |
Inventory | (68,355) | (95,468) |
Other current assets | 6,053 | (6,273) |
Other assets | 2,201 | 1,979 |
Operating leases, net | (14,286) | 3,657 |
Accounts payable and accrued liabilities | 108 | (70,217) |
Income taxes payable | 434 | (8,393) |
Other liabilities | (393) | (12,525) |
Net cash provided (used) by operating activities | 79,648 | (2,773) |
Cash Flows from Investing Activities: | ||
Payments for property and equipment, net of proceeds | (42,181) | (44,109) |
Acquisitions, net of cash acquired | (318) | |
Net cash used by investing activities | (42,181) | (44,427) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of long-term debt | 853,000 | |
Repayments of long-term debt | (898,093) | (2,841) |
Payments for common stock repurchased | (130,328) | |
Proceeds from equity awards | 1,723 | 7,796 |
Debt issuance costs | (4,726) | |
Employee withholding taxes paid related to net share settlement of equity awards | (1,141) | (1,151) |
Net cash used by financing activities | (49,237) | (126,524) |
Effect of foreign exchange rate changes on cash and cash equivalents | 2,832 | 178 |
Net decrease in cash and cash equivalents | (8,938) | (173,546) |
Cash and cash equivalents, beginning of period | 70,558 | 400,959 |
Cash and cash equivalents, end of period | 61,620 | 227,413 |
Supplemental Cash Flow Information: | ||
Interest paid | 35,191 | 37,809 |
Income taxes paid | 32,077 | 56,701 |
Capital expenditures incurred but not paid | $ 5,466 | $ 3,205 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated interim financial statements of Sally Beauty Holdings, Inc. and its subsidiaries included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC, although we believe that the disclosures included herein are adequate for the interim period presented. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments that are of a normal recurring nature and which are necessary to present fairly our consolidated financial position as of March 31, 2023, and September 30, 2022, our consolidated results of operations, consolidated comprehensive income and consolidated statements of stockholders’ equity for the three and six months ended March 31, 2023 and 2022 and our consolidated cash flows for the for the six months ended March 31, 2023 and 2022 Principles of Consolidation The unaudited condensed consolidated interim financial statements include all accounts of Sally Beauty Holdings, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. All amounts are in U.S. Dollars. Accounting Policies We adhere to the same accounting policies in the preparation of our condensed consolidated interim financial statements as we do in the preparation of our full year consolidated financial statements. As permitted under GAAP, interim accounting for certain expenses, including income taxes, is based on full-year assumptions. For interim financial reporting purposes, income taxes are recorded based upon our estimated annual effective income tax. Use of Estimates In order to present our financial statements in conformity with GAAP, we are required to make certain estimates and assumptions that impact our interim financial statements and supplementary disclosures. These estimates may use forecasted financial information based on reasonable information available, however are subject to change in the future. Significant estimates and assumptions are part of our accounting for sales allowances, deferred revenue, valuation of inventory, amortization and depreciation, intangibles and goodwill, and other reserves. We believe these estimates and assumptions are reasonable; however, they are based on management’s current knowledge of events and actions, and changes in facts and circumstances may result in revised estimates and impact actual results. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Mar. 31, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Substantially all of our revenue is derived through the sale of merchandise at the point-of-sale. Revenue is recognized net of estimated sales returns and sales taxes. We estimate sales returns based on historical data. Changes to our contract liabilities, which are included in accrued liabilities in our condensed consolidated balance sheets, for the periods were as follows (in thousands): Six Months Ended March 31, 2023 2022 Beginning Balance $ 13,460 $ 16,744 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 9,327 6,214 Revenue recognized from beginning liability (8,370 ) (6,316 ) Ending Balance $ 14,417 $ 16,642 See Note 10, Segment Reporting |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements We measure on a recurring basis and disclose the fair value of our financial instruments under the provisions of ASC Topic 820, Fair Value Measurement, as amended (“ASC 820”). We define “fair value” as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level hierarchy for measuring fair value and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. This valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels of that hierarchy are defined as follows: Level 1 - Quoted prices are available in active markets for identical assets or liabilities; Level 2 - Pricing inputs are other than quoted prices in active markets, included in Level 1, that are either directly or indirectly observable; and Level 3 - Unobservable pricing inputs in which little or no market activity exists, therefore requiring an entity to develop its own model with estimates and assumptions. Financial instruments measured at fair value on recurring basis Consistent with the fair value hierarchy, we categorized our financial assets and liabilities as follow: (in thousands) Classification Fair Value Hierarchy Level March 31, 2023 September 30, 2022 Financial Assets: Foreign exchange contracts Non-designated cash flow hedges Other current assets Level 2 $ 327 $ 294 Interest rate caps Other current assets Level 2 — 3,860 Total assets $ 327 $ 4,154 . Financial Liabilities: Foreign exchange contracts Designated cash flow hedges Accrued liabilities Level 2 $ 2,300 $ — Non-designated cash flow hedges Accrued liabilities Level 2 1,887 79 Total liabilities $ 4,187 $ 79 The fair value for interest rate caps and foreign exchange contracts were measured using widely accepted valuation techniques, such as discounted cash flow analyses and observable inputs, such as market interest rates and foreign exchange rates. Other fair value disclosures The carrying amounts of cash equivalents, trade and other accounts receivable and accounts payable and borrowing under our ABL facility approximate their respective fair values due to the short-term nature of these financial instruments. Carrying amounts and the related estimated fair value of our long-term debt, excluding finance lease obligations, debt issuance costs and original issue discounts, are as follows: March 31, 2023 September 30, 2022 (in thousands) Fair Value Hierarchy Level Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding capital leases Senior notes Level 1 $ 679,961 $ 668,062 $ 679,961 $ 639,163 Term loan B due 2024 Level 2 — — 407,500 398,331 Term loan B due 2030 Level 2 400,000 398,500 — — Total long-term debt $ 1,079,961 $ 1,066,562 $ 1,087,461 $ 1,037,494 The fair value of the term loan B was measured using quoted market prices for similar debt securities in active markets or widely accepted valuation techniques, such as discounted cash flow analyses, using observable inputs, such as market interest rates. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Mar. 31, 2023 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 4. Stockholders’ Equity Share Repurchases In August 2017, our Board of Directors (“Board”) approved a share repurchase program authorizing us to repurchase up to $1.0 billion of its common stock, subject to certain limitations governed by our debt agreements. In July 2021, our Board approved a term extension of the share repurchase program for the four-year Accumulated Other Comprehensive Income (Loss) The change in accumulated other comprehensive loss (“AOCL”) was as follows (in thousands): Foreign Currency Translation Adjustments Interest Rate Caps Foreign Exchange Contracts Total Balance at September 30, 2022 $ (153,128 ) $ 1,960 $ (679 ) $ (151,847 ) Other comprehensive loss before reclassification, net of tax 35,386 817 (1,815 ) 34,388 Reclassification to net earnings, net of tax — (2,777 ) (112 ) (2,889 ) Balance at March 31, 2023 $ (117,742 ) $ — $ (2,606 ) $ (120,348 ) The tax impact for the changes in other comprehensive loss and the reclassifications to net earnings was not material. |
Weighted-Average Shares
Weighted-Average Shares | 6 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares | 5. Weighted-Average Shares The following table sets forth the reconciliation of basic and diluted weighted-average shares (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Weighted-average basic shares 107,453 108,743 107,294 110,387 Dilutive securities: Stock option and stock award programs 2,253 1,797 2,205 1,820 Weighted-average diluted shares 109,706 110,540 109,499 112,207 Anti-dilutive options excluded from our computation of diluted shares 1,964 2,534 1,964 2,169 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Mar. 31, 2023 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets During the three months ended March 31, 2023, we completed our annual assessments for impairment of goodwill and indefinite-lived intangible assets. For our goodwill testing, we performed a qualitative analysis and determined that there was no indication of impairment requiring further quantitative testing. No material impairment losses were recognized in the current or prior periods presented in connection with our goodwill and intangible assets. Three Months Ended March 31, Six Months Ended March 31, (in thousands) 2023 2022 2023 2022 Intangible assets amortization expense $ 866 $ 999 $ 1,875 $ 2,070 Additionally, during the six months ended March 31, 2023, the changes in goodwill and other intangibles included effects of foreign currency exchange rates of $8.2 million and $2.1 million, respectively. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Mar. 31, 2023 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, 2023 September 30, 2022 Compensation and benefits $ 66,868 $ 58,693 Deferred revenue 18,980 18,810 Rental obligations 12,766 10,701 Insurance reserves 6,111 5,742 Property and other taxes 3,022 4,161 Interest payable 13,699 13,445 Operating accruals and other 46,741 49,513 Total accrued liabilities $ 168,187 $ 161,065 |
Short-term Borrowings and Long-
Short-term Borrowings and Long-term Debt | 6 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings and Long-term Debt | 8. Short-term Borrowings and Long-term Debt At March 31, 2023, our ABL facility had $34.0 million in outstanding borrowings as reduced by outstanding letters of credit On February 28, 2023, we announced that our wholly-owned subsidiaries, Sally Holdings LLC (“Sally Holdings”) and Sally Capital, Inc. (“Sally Capital” and, together with Sally Holdings, the “Borrowers”), and certain of our other direct and indirect subsidiaries entered into a credit agreement with Bank of America, N.A., as Administrative Agent and Collateral Agent, and the lenders and other parties thereto providing for a term loan B facility (“TLB 2030”) in an aggregate principal amount equal to $400.0 million, the net proceeds of which were used to repay an existing term loan B facility (“TLB 2024”). The TLB 2030 will bear interest at a floating rate equal to, at the Borrowers option, either the Adjusted Term SOFR Rate from time to time in effect plus 2.50% or an adjusted base rate plus 1.50%, payable quarterly on March 31, June 30, September 30 and December 31 of each year. The TLB 2030 matures on the earlier of (i) February 28, 2030 and (ii) the date that is 91 days prior to the stated maturity of the Borrowers’ 2025 Senior Unsecured Notes (the “2025 Senior Unsecured Notes”) unless all amounts exceeding $200.0 million of the 2025 Senior Unsecured Notes are refinanced or repaid according to certain conditions (the “Maturity Date”). The principal of the TLB 2030 is repayable in quarterly installments equal to 0.25% of the original principal amount of the TLB 2030, with a final installment equal to the entire remaining outstanding principal amount due on the Maturity Date. TLB 2030 was issued at a discount of 0.75% and we incurred $4.7 million in issuance costs; both of which are being amortized using the effective interest method. The TLB 2030 is secured by a first-priority lien in and upon substantially all of the assets of the Company and its domestic subsidiaries other than the accounts, inventory (and the proceeds thereof) and other assets that secure Sally Holdings’ existing ABL facility on a first-priority basis (the “ABL Priority Collateral”). Additionally, the TLB 2030 is secured by a second-priority lien in and upon the ABL Priority Collateral. The TLB 2030 does not contain any financial maintenance covenants and is subject to a covenant package that is substantially consistent with the covenant package governing the 2025 Senior Unsecured Notes. The TLB 2030 is subject to customary asset sale mandatory prepayment provisions and excess cash flow mandatory prepayment provisions. The TLB 2030 is subject to a prepayment premium of 1.0% of the principal amount thereof upon any refinancing or amendment thereof that results in a reduced effective yield (subject to certain exceptions) within six months following the closing. Thereafter, the TLB 2030 may be prepaid without penalty or premium, other than customary breakage costs for prepayments that are made prior to the last date of an interest period. The repayment of our TLB 2024, in the aggregate outstanding principal amount of $406.1 million, was made pursuant to the terms of the indenture dated February 28, 2017, at par plus interest accrued but unpaid up to, though not including, the repayment date. In connection with the repayment, we recognized a loss on the extinguishment of debt of $0.6 million within interest expense, which included the write-off of unamortized discount and deferred financing costs of $0.2 million and $0.4 million, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 9. Derivative Instruments and Hedging Activities During the six months ended March 31, 2023, we did not purchase or hold any derivative instruments for trading or speculative purposes. See Note 3, Fair Value Measurements Designated Cash Flow Hedges Foreign Currency Forwards We regularly enter into foreign currency forwards to mitigate our exposure to exchange rate changes on forecasted inventory purchases in U.S. dollars by our foreign subsidiaries. At March 31, 2023, we held forwards, which expire ratably through September 30, 2023, with a notional amount, based upon exchange rates at March 31, 2023, as follows (in thousands): Notional Currency Notional Amount Mexican Peso $ 12,846 Euro 7,699 Canadian Dollar 6,284 Total $ 26,829 Quarterly, the changes in fair value related to these foreign currency forwards are recorded into AOCL. As the forwards are exercised, the realized value is recognized into cost of goods sold, based on inventory turns, in our condensed consolidated statements of earnings. For the three months ended March 31, 2023 and 2022, we recognized losses of $0.2 million and $0.1 million, respectively. For the six months ended March 31, 2023 and 2022, we recognized a gain of $0.1 million and a loss of $0.4 million, respectively. Based on March 31, 2023, valuations and exchange rates, we expect to reclassify losses of approximately $3.1 million into cost of goods sold over the next 12 months. Interest Rate Caps In July 2017, we purchased two interest rate caps with an initial aggregate notional amount of $550 million (the “interest rate caps”) to mitigate the exposure to higher interest rates in connection with our TLB 2024. The interest rate caps were comprised of individual caplets that were expiring ratably through June 30, 2023, and were designated as cash flow hedges. Accordingly, the changes in fair value of the interest rate caps were recorded quarterly, net of income tax, and included in AOCL. During the three months ended March 31, 2023, we early settled both interest rate caps due to the forecasted transactions being hedged no longer occurring as a result of the repayment of our TLB 2024. In connection with the early settlement, we received approximately $2.7 million, which represented the fair value at the time of settlement. Furthermore, we released the remaining AOCL balances related to the interest rate caps into interest expense. For the three months ended March 31, 2023, we recognized income of $2.8 million into interest expense on our condensed consolidated statements of earnings related to the caps. The effects of our interest rate caps on our condensed consolidated statements of earnings were not material for the three months ended March 31, 2022. For the six months ended March 31, 2023 and 2022, we recognized income of $2.8 million and expense of $0.4 million, respectively, into interest expense on our condensed consolidated statements of earnings related to the caps. Non-Designated Derivative Instruments We also use foreign exchange contracts to mitigate our exposure to exchange rate changes in connection with certain intercompany balances not permanently invested. At March 31, 2023, we held forwards, which expire on various dates in the first month of both the third and fourth fiscal quarters of fiscal year 2023, with a notional amount, based upon exchange rates at March 31, 2023, as follows (in thousands): Notional Currency Notional Amount British Pound $ 51,936 Canadian Dollar 13,491 Euro 21,173 Mexican Peso 26,175 Total $ 112,775 We record changes in fair value and realized gains or losses related to these foreign currency forwards into selling, general and administrative expenses. For the three months ended March 31, 2023 and 2022, the effects of these foreign exchange contracts on our condensed consolidated financial statements were losses of $1.5 million and $0.2 million, respectively. For the six months ended March 31, 2023 and 2022, the effects of these foreign exchange contracts on our condensed consolidated financial statements were a loss of $1.1 million and a gain of $0.1 million, respectively. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | 10. Segment Reporting Segment data for the three and six months ended March 31, 2023 and 2022, is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Net sales: Sally Beauty Supply ("SBS") $ 530,246 $ 525,785 $ 1,079,718 $ 1,087,315 Beauty Systems Group ("BSG") 388,466 385,602 796,049 804,323 Total $ 918,712 $ 911,387 $ 1,875,767 $ 1,891,638 Earnings before provision for income taxes: Segment operating earnings: SBS $ 92,134 $ 80,940 $ 191,308 $ 181,563 BSG 37,260 46,008 86,907 104,554 Segment operating earnings 129,394 126,948 278,215 286,117 Unallocated expenses 50,712 40,487 102,539 85,777 Restructuring 7,274 — 17,680 1,099 Consolidated operating earnings 71,408 86,461 157,996 199,241 Interest expense 16,685 19,896 34,608 40,137 Earnings before provision for income taxes $ 54,723 $ 66,565 $ 123,388 $ 159,104 Sales between segments, which are eliminated in consolidation, were not material during the three and six months ended March 31, 2023 and 2022. Disaggregation of net sales by segment The following tables disaggregate our segment revenues by merchandise category. We have reclassified certain prior year amounts within BSG to conform to current year presentation. Three Months Ended March 31, Six Months Ended March 31, SBS 2023 2022 2023 2022 Hair color 39.8 % 38.1 % 39.2 % 37.4 % Hair care 24.3 % 24.1 % 23.9 % 24.0 % Styling tools and supplies 17.9 % 19.2 % 18.7 % 19.7 % Nail 10.0 % 10.6 % 10.2 % 10.5 % Skin and cosmetics 7.5 % 7.4 % 7.4 % 7.7 % Other beauty items 0.5 % 0.6 % 0.6 % 0.7 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2023 2022 2023 2022 Hair care 42.0 % 43.1 % 42.8 % 43.3 % Hair color 40.6 % 39.5 % 39.4 % 38.9 % Styling tools and supplies 10.8 % 11.2 % 10.8 % 11.3 % Skin and cosmetics 3.7 % 3.5 % 4.1 % 3.9 % Nail 2.7 % 2.3 % 2.7 % 2.2 % Other beauty items 0.2 % 0.4 % 0.2 % 0.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % The following tables disaggregate our segment revenue by sales channels: Three Months Ended March 31, Six Months Ended March 31, SBS 2023 2022 2023 2022 Company-operated stores 93.6 % 93.7 % 93.6 % 94.0 % E-commerce 6.4 % 6.3 % 6.4 % 6.0 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2023 2022 2023 2022 Company-operated stores 67.5 % 66.6 % 66.9 % 67.1 % E-commerce 13.7 % 12.4 % 13.7 % 12.0 % Distributor sales consultants 11.4 % 14.0 % 12.0 % 13.8 % Franchise stores 7.4 % 7.0 % 7.4 % 7.1 % Total 100.0 % 100.0 % 100.0 % 100.0 % |
Restructuring
Restructuring | 6 Months Ended |
Mar. 31, 2023 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 11. Restructuring Restructuring expenses, included in Cost of Goods Sold (“COGS”) and Restructuring for the three and six months ended March 31, 2023 and 2022 are as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Included in COGS (a) Distribution Center Consolidation and Store Optimization Plan $ (2,362 ) $ — $ (5,042 ) $ — Included in Restructuring (b) Distribution Center Consolidation and Store Optimization Plan $ 7,274 $ — $ 17,680 $ — Transformation Plan — — — 1,099 Total in Restructuring 7,274 — 17,680 1,099 Total Restructuring Expenses $ 4,912 $ — $ 12,638 $ 1,099 (a) Amounts included within COGS are related to adjustments to our expected obsolescence reserve related to the Plan (as defined below). (b) Amounts included within Restructuring for the current year are related to stores and distribution centers closed during the period in accordance with the Plan (as defined below). Distribution Center Consolidation and Store Optimization Plan In the fourth quarter of fiscal year 2022, our Board approved the Distribution Center Consolidation and Store Optimization Plan (“the Plan”) authorizing the closure of 330 SBS stores and 35 BSG stores, and the closure of two BSG distribution centers in Clackamas, Oregon and Pottsville, Pennsylvania. We believe that consolidating the operation of these two distribution centers into our larger distribution centers will increase product availability, shorten delivery times and reduce overall costs. Stores identified for early closure were part of a strategic evaluation which included a market analysis of certain locations where we believe we will be able to recapture demand at other nearby store locations and improve overall profitability. By optimizing our store base, we are further focusing on our customers’ shopping experience and our product offerings. As of March 31, 2023, we have closed 329 SBS stores and 28 BSG stores as part of the Plan and The liability related to the Plan, which is included in accounts payable and accrued liabilities on our consolidated balance sheets, is as follows: (in thousands) Liability at September 30, 2022 SBS Expense BSG Expense Cash Payments Non-Cash Amounts Liability at March 31, 2023 Closing costs - leases (a) $ — $ 7,389 $ 1,307 $ (5,463 ) $ (1,043 ) $ 2,190 Closing costs - payroll expenses (b) — 1,540 979 (2,458 ) — 61 Impairment - property and equipment (c) — 1,276 193 — (1,469 ) — Inventory transfer costs — 1,158 322 (1,372 ) — 108 Impairment - operating lease assets (c) — 350 244 — (594 ) — Other closure costs (d) 1,291 2,978 (56 ) (2,659 ) — 1,554 Total $ 1,291 $ 14,691 $ 2,989 $ (11,952 ) $ (3,106 ) $ 3,913 (a) Lease-related closing costs include contract terminations costs, repairs, maintenance, and other rental obligations associated with closing stores. (b) Payroll-related closing costs include one-time termination benefits related to the closure of our distribution centers as well as other payroll expenses associated with closing stores. (c) Remaining carrying value for the long-lived assets, including operating lease assets, were not material and approximate their fair value. (d) Other closure costs predominantly consist of exit costs associated with shutting down of operations at various locations. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | 12. Subsequent Event In April 2023, we entered into an interest rate swap transaction to help mitigate the risk of our floating rate debt. The notional amount of the swap is $200 million with an effective date of April 28, 2023 and a termination date of April 30, 2026. Under the terms of the swap, we will pay a fixed rate of interest of 3.705% and will receive a floating rate of interest equal to one-month SOFR. The floating rate will be reset monthly and net settlements of interest due to/from the counterparty will also occur monthly. To the extent the floating rate of interest exceeds the fixed rate of interest, we will receive net interest settlements, which will be recorded as a reduction to interest expense. If the fixed rate of interest exceeds the floating rate of interest, we will be required to pay net settlements to the counterparty and will record those net payments in interest expense. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated interim financial statements of Sally Beauty Holdings, Inc. and its subsidiaries included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC, although we believe that the disclosures included herein are adequate for the interim period presented. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments that are of a normal recurring nature and which are necessary to present fairly our consolidated financial position as of March 31, 2023, and September 30, 2022, our consolidated results of operations, consolidated comprehensive income and consolidated statements of stockholders’ equity for the three and six months ended March 31, 2023 and 2022 and our consolidated cash flows for the for the six months ended March 31, 2023 and 2022 |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated interim financial statements include all accounts of Sally Beauty Holdings, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. All amounts are in U.S. Dollars. |
Accounting Policies | Accounting Policies We adhere to the same accounting policies in the preparation of our condensed consolidated interim financial statements as we do in the preparation of our full year consolidated financial statements. As permitted under GAAP, interim accounting for certain expenses, including income taxes, is based on full-year assumptions. For interim financial reporting purposes, income taxes are recorded based upon our estimated annual effective income tax. |
Use of Estimates | Use of Estimates In order to present our financial statements in conformity with GAAP, we are required to make certain estimates and assumptions that impact our interim financial statements and supplementary disclosures. These estimates may use forecasted financial information based on reasonable information available, however are subject to change in the future. Significant estimates and assumptions are part of our accounting for sales allowances, deferred revenue, valuation of inventory, amortization and depreciation, intangibles and goodwill, and other reserves. We believe these estimates and assumptions are reasonable; however, they are based on management’s current knowledge of events and actions, and changes in facts and circumstances may result in revised estimates and impact actual results. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Changes to Contract Liabilities | Changes to our contract liabilities, which are included in accrued liabilities in our condensed consolidated balance sheets, for the periods were as follows (in thousands): Six Months Ended March 31, 2023 2022 Beginning Balance $ 13,460 $ 16,744 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 9,327 6,214 Revenue recognized from beginning liability (8,370 ) (6,316 ) Ending Balance $ 14,417 $ 16,642 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities and other fair value disclosures by fair value hierarchy | Financial instruments measured at fair value on recurring basis Consistent with the fair value hierarchy, we categorized our financial assets and liabilities as follow: (in thousands) Classification Fair Value Hierarchy Level March 31, 2023 September 30, 2022 Financial Assets: Foreign exchange contracts Non-designated cash flow hedges Other current assets Level 2 $ 327 $ 294 Interest rate caps Other current assets Level 2 — 3,860 Total assets $ 327 $ 4,154 . Financial Liabilities: Foreign exchange contracts Designated cash flow hedges Accrued liabilities Level 2 $ 2,300 $ — Non-designated cash flow hedges Accrued liabilities Level 2 1,887 79 Total liabilities $ 4,187 $ 79 Other fair value disclosures The carrying amounts of cash equivalents, trade and other accounts receivable and accounts payable and borrowing under our ABL facility approximate their respective fair values due to the short-term nature of these financial instruments. Carrying amounts and the related estimated fair value of our long-term debt, excluding finance lease obligations, debt issuance costs and original issue discounts, are as follows: March 31, 2023 September 30, 2022 (in thousands) Fair Value Hierarchy Level Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding capital leases Senior notes Level 1 $ 679,961 $ 668,062 $ 679,961 $ 639,163 Term loan B due 2024 Level 2 — — 407,500 398,331 Term loan B due 2030 Level 2 400,000 398,500 — — Total long-term debt $ 1,079,961 $ 1,066,562 $ 1,087,461 $ 1,037,494 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Stockholders Equity Note [Abstract] | |
Schedule of changes in accumulated other comprehensive loss | The change in accumulated other comprehensive loss (“AOCL”) was as follows (in thousands): Foreign Currency Translation Adjustments Interest Rate Caps Foreign Exchange Contracts Total Balance at September 30, 2022 $ (153,128 ) $ 1,960 $ (679 ) $ (151,847 ) Other comprehensive loss before reclassification, net of tax 35,386 817 (1,815 ) 34,388 Reclassification to net earnings, net of tax — (2,777 ) (112 ) (2,889 ) Balance at March 31, 2023 $ (117,742 ) $ — $ (2,606 ) $ (120,348 ) |
Weighted-Average Shares (Tables
Weighted-Average Shares (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted weighted-average shares | The following table sets forth the reconciliation of basic and diluted weighted-average shares (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Weighted-average basic shares 107,453 108,743 107,294 110,387 Dilutive securities: Stock option and stock award programs 2,253 1,797 2,205 1,820 Weighted-average diluted shares 109,706 110,540 109,499 112,207 Anti-dilutive options excluded from our computation of diluted shares 1,964 2,534 1,964 2,169 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets Amortization Expense | Three Months Ended March 31, Six Months Ended March 31, (in thousands) 2023 2022 2023 2022 Intangible assets amortization expense $ 866 $ 999 $ 1,875 $ 2,070 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Payables And Accruals [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consist of the following (in thousands): March 31, 2023 September 30, 2022 Compensation and benefits $ 66,868 $ 58,693 Deferred revenue 18,980 18,810 Rental obligations 12,766 10,701 Insurance reserves 6,111 5,742 Property and other taxes 3,022 4,161 Interest payable 13,699 13,445 Operating accruals and other 46,741 49,513 Total accrued liabilities $ 168,187 $ 161,065 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) - Foreign Exchange Contract | 6 Months Ended |
Mar. 31, 2023 | |
Schedule of notional amount held through foreign currency forwards, based upon exchange rates | At March 31, 2023, we held forwards, which expire ratably through September 30, 2023, with a notional amount, based upon exchange rates at March 31, 2023, as follows (in thousands): Notional Currency Notional Amount Mexican Peso $ 12,846 Euro 7,699 Canadian Dollar 6,284 Total $ 26,829 |
Non-Designated Derivative Instruments | |
Schedule of notional amount held through foreign currency forwards, based upon exchange rates | At March 31, 2023, we held forwards, which expire on various dates in the first month of both the third and fourth fiscal quarters of fiscal year 2023, with a notional amount, based upon exchange rates at March 31, 2023, as follows (in thousands): Notional Currency Notional Amount British Pound $ 51,936 Canadian Dollar 13,491 Euro 21,173 Mexican Peso 26,175 Total $ 112,775 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment data | Segment data for the three and six months ended March 31, 2023 and 2022, is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Net sales: Sally Beauty Supply ("SBS") $ 530,246 $ 525,785 $ 1,079,718 $ 1,087,315 Beauty Systems Group ("BSG") 388,466 385,602 796,049 804,323 Total $ 918,712 $ 911,387 $ 1,875,767 $ 1,891,638 Earnings before provision for income taxes: Segment operating earnings: SBS $ 92,134 $ 80,940 $ 191,308 $ 181,563 BSG 37,260 46,008 86,907 104,554 Segment operating earnings 129,394 126,948 278,215 286,117 Unallocated expenses 50,712 40,487 102,539 85,777 Restructuring 7,274 — 17,680 1,099 Consolidated operating earnings 71,408 86,461 157,996 199,241 Interest expense 16,685 19,896 34,608 40,137 Earnings before provision for income taxes $ 54,723 $ 66,565 $ 123,388 $ 159,104 |
Schedule of disaggregation of net sales by segment | Disaggregation of net sales by segment The following tables disaggregate our segment revenues by merchandise category. We have reclassified certain prior year amounts within BSG to conform to current year presentation. Three Months Ended March 31, Six Months Ended March 31, SBS 2023 2022 2023 2022 Hair color 39.8 % 38.1 % 39.2 % 37.4 % Hair care 24.3 % 24.1 % 23.9 % 24.0 % Styling tools and supplies 17.9 % 19.2 % 18.7 % 19.7 % Nail 10.0 % 10.6 % 10.2 % 10.5 % Skin and cosmetics 7.5 % 7.4 % 7.4 % 7.7 % Other beauty items 0.5 % 0.6 % 0.6 % 0.7 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2023 2022 2023 2022 Hair care 42.0 % 43.1 % 42.8 % 43.3 % Hair color 40.6 % 39.5 % 39.4 % 38.9 % Styling tools and supplies 10.8 % 11.2 % 10.8 % 11.3 % Skin and cosmetics 3.7 % 3.5 % 4.1 % 3.9 % Nail 2.7 % 2.3 % 2.7 % 2.2 % Other beauty items 0.2 % 0.4 % 0.2 % 0.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % The following tables disaggregate our segment revenue by sales channels: Three Months Ended March 31, Six Months Ended March 31, SBS 2023 2022 2023 2022 Company-operated stores 93.6 % 93.7 % 93.6 % 94.0 % E-commerce 6.4 % 6.3 % 6.4 % 6.0 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2023 2022 2023 2022 Company-operated stores 67.5 % 66.6 % 66.9 % 67.1 % E-commerce 13.7 % 12.4 % 13.7 % 12.0 % Distributor sales consultants 11.4 % 14.0 % 12.0 % 13.8 % Franchise stores 7.4 % 7.0 % 7.4 % 7.1 % Total 100.0 % 100.0 % 100.0 % 100.0 % |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Restructuring And Related Activities [Abstract] | |
Summary of restructuring expense and gains | Restructuring expenses, included in Cost of Goods Sold (“COGS”) and Restructuring for the three and six months ended March 31, 2023 and 2022 are as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Included in COGS (a) Distribution Center Consolidation and Store Optimization Plan $ (2,362 ) $ — $ (5,042 ) $ — Included in Restructuring (b) Distribution Center Consolidation and Store Optimization Plan $ 7,274 $ — $ 17,680 $ — Transformation Plan — — — 1,099 Total in Restructuring 7,274 — 17,680 1,099 Total Restructuring Expenses $ 4,912 $ — $ 12,638 $ 1,099 (a) Amounts included within COGS are related to adjustments to our expected obsolescence reserve related to the Plan (as defined below). (b) Amounts included within Restructuring for the current year are related to stores and distribution centers closed during the period in accordance with the Plan (as defined below). |
Schedule of restructuring | The liability related to the Plan, which is included in accounts payable and accrued liabilities on our consolidated balance sheets, is as follows: (in thousands) Liability at September 30, 2022 SBS Expense BSG Expense Cash Payments Non-Cash Amounts Liability at March 31, 2023 Closing costs - leases (a) $ — $ 7,389 $ 1,307 $ (5,463 ) $ (1,043 ) $ 2,190 Closing costs - payroll expenses (b) — 1,540 979 (2,458 ) — 61 Impairment - property and equipment (c) — 1,276 193 — (1,469 ) — Inventory transfer costs — 1,158 322 (1,372 ) — 108 Impairment - operating lease assets (c) — 350 244 — (594 ) — Other closure costs (d) 1,291 2,978 (56 ) (2,659 ) — 1,554 Total $ 1,291 $ 14,691 $ 2,989 $ (11,952 ) $ (3,106 ) $ 3,913 (a) Lease-related closing costs include contract terminations costs, repairs, maintenance, and other rental obligations associated with closing stores. (b) Payroll-related closing costs include one-time termination benefits related to the closure of our distribution centers as well as other payroll expenses associated with closing stores. (c) Remaining carrying value for the long-lived assets, including operating lease assets, were not material and approximate their fair value. (d) Other closure costs predominantly consist of exit costs associated with shutting down of operations at various locations. |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Changes to Contract Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Contract With Customer Liability [Abstract] | ||
Beginning Balance | $ 13,460 | $ 16,744 |
Loyalty points and gift cards issued but not redeemed, net of estimated breakage | 9,327 | 6,214 |
Revenue recognized from beginning liability | (8,370) | (6,316) |
Ending Balance | $ 14,417 | $ 16,642 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Long-term debt, excluding capital leases | ||
Long-term debt, excluding capital leases, Carrying Value | $ 1,079,961 | $ 1,087,461 |
Long-term debt, excluding capital leases, Fair Value | 1,066,562 | 1,037,494 |
Level 2 | Term Loan B Due 2024 | ||
Long-term debt, excluding capital leases | ||
Long-term debt, excluding capital leases, Carrying Value | 407,500 | |
Long-term debt, excluding capital leases, Fair Value | 398,331 | |
Level 2 | Term Loan B Due 2030 | ||
Long-term debt, excluding capital leases | ||
Long-term debt, excluding capital leases, Carrying Value | 400,000 | |
Long-term debt, excluding capital leases, Fair Value | 398,500 | |
Level 1 | Senior notes | ||
Long-term debt, excluding capital leases | ||
Long-term debt, excluding capital leases, Carrying Value | 679,961 | 679,961 |
Long-term debt, excluding capital leases, Fair Value | 668,062 | 639,163 |
Fair Value, Recurring | ||
Financial Assets: | ||
Total assets | 327 | 4,154 |
Financial Liabilities: | ||
Total liabilities | 4,187 | 79 |
Fair Value, Recurring | Level 2 | Other current assets | ||
Financial Assets: | ||
Interest rate caps | 3,860 | |
Fair Value, Recurring | Level 2 | Other current assets | Non-Designated Derivative Instruments | ||
Financial Assets: | ||
Cash flow hedges | 327 | 294 |
Fair Value, Recurring | Level 2 | Accrued Liabilities | Non-Designated Derivative Instruments | ||
Financial Liabilities: | ||
Cash flow hedges | 1,887 | $ 79 |
Fair Value, Recurring | Level 2 | Accrued Liabilities | Designated cash flow hedges | ||
Financial Liabilities: | ||
Cash flow hedges | $ 2,300 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program (Details) - 2017 Share Repurchase program - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Aug. 31, 2017 | |
Share Repurchase Program | ||||||
Amount of shares authorized to be repurchased | $ 595,800,000 | $ 595,800,000 | $ 1,000,000,000 | |||
Term of share repurchase program, extended | 4 years | |||||
Stock repurchase program, expiration date | Sep. 30, 2025 | |||||
Number of shares repurchased | 0 | 3,100,000 | 0 | 6,800,000 | ||
Total cost of share repurchased | $ 55,000,000 | $ 130,300,000 |
Stockholders' Equity - Change i
Stockholders' Equity - Change in AOCL (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2023 USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Balance | $ 293,636 |
Balance | 425,888 |
Interest rate caps | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Balance | 1,960 |
Other comprehensive loss before reclassification, net of tax | 817 |
Reclassification to net earnings, net of tax | (2,777) |
Foreign exchange contracts | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Balance | (679) |
Other comprehensive loss before reclassification, net of tax | (1,815) |
Reclassification to net earnings, net of tax | (112) |
Balance | (2,606) |
Foreign currency translation adjustments | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Balance | (153,128) |
Other comprehensive loss before reclassification, net of tax | 35,386 |
Balance | (117,742) |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Balance | (151,847) |
Other comprehensive loss before reclassification, net of tax | 34,388 |
Reclassification to net earnings, net of tax | (2,889) |
Balance | $ (120,348) |
Weighted-Average Shares (Detail
Weighted-Average Shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share Reconciliation: | ||||
Weighted-average basic shares | 107,453 | 108,743 | 107,294 | 110,387 |
Dilutive securities: | ||||
Stock option and stock award programs | 2,253 | 1,797 | 2,205 | 1,820 |
Weighted-average diluted shares | 109,706 | 110,540 | 109,499 | 112,207 |
Anti-dilutive options excluded from our computation of diluted shares | 1,964 | 2,534 | 1,964 | 2,169 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2023 | Mar. 31, 2023 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Impairment losses in connection with the goodwill | $ 0 | |
Impairment losses in connection with the intangible assets | $ 0 | |
Goodwill, decreased from effects of foreign currency exchange rates | $ 8,200,000 | |
Intangible assets, decreased from effects of foreign currency exchange rates | $ 2,100,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Intangible assets amortization expense | $ 866 | $ 999 | $ 1,875 | $ 2,070 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Accrued Liabilities | ||
Compensation and benefits | $ 66,868 | $ 58,693 |
Deferred revenue | 18,980 | 18,810 |
Rental obligations | 12,766 | 10,701 |
Insurance reserves | 6,111 | 5,742 |
Property and other taxes | 3,022 | 4,161 |
Interest payable | 13,699 | 13,445 |
Operating accruals and other | 46,741 | 49,513 |
Total accrued liabilities | $ 168,187 | $ 161,065 |
Short-term Borrowings and Lon_2
Short-term Borrowings and Long-term Debt - Additional Information (Details) - USD ($) | 6 Months Ended | |
Feb. 28, 2023 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Debt instruments issuance cost | $ 4,726,000 | |
Extinguishment of debt | (601,000) | |
Sally Holdings LLC and Sally Capital Inc. | TLB 2030 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 400,000,000 | |
Debt instrument maturity terms | The TLB 2030 matures on the earlier of (i) February 28, 2030 and (ii) the date that is 91 days prior to the stated maturity of the Borrowers’ 2025 Senior Unsecured Notes | |
Percentage of principal repayable in quarterly installments equal to a percentage of original principal amount to outstanding principal amount due on maturity date | 0.25% | |
Interest rate discount | 0.75% | |
Debt instruments issuance cost | $ 4,700,000 | |
Prepayment premium percentage | 1% | |
Debt instrument payment terms | repayable in quarterly installments equal to 0.25% of the original principal amount of the TLB 2030, with a final installment equal to the entire remaining outstanding principal amount due on the Maturity Date | |
Sally Holdings LLC and Sally Capital Inc. | 2025 Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 200,000,000 | |
Sally Holdings LLC and Sally Capital Inc. | TLB 2024 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 406,100,000 | |
Date of indenture | Feb. 28, 2017 | |
Extinguishment of debt | $ 600,000 | |
Unamortized discount | 200,000 | |
Deferred financing costs | $ 400,000 | |
SOFR | Sally Holdings LLC and Sally Capital Inc. | TLB 2030 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.50% | |
Base Rate | Sally Holdings LLC and Sally Capital Inc. | TLB 2030 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.50% | |
ABL facility | ||
Debt Instrument [Line Items] | ||
Outstanding borrowing | 34,000,000 | |
Revolving credit facility | $ 448,700,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - (Details) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 USD ($) instrument | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) instrument | Mar. 31, 2022 USD ($) | Jul. 31, 2017 USD ($) derivative | |
Derivative Instruments | |||||
Number of derivative instruments held | instrument | 0 | 0 | |||
Interest expense | $ 16,685,000 | $ 19,896,000 | $ 34,608,000 | $ 40,137,000 | |
Foreign Currency Forwards | |||||
Derivative Instruments | |||||
Derivative instruments, expiration date | Sep. 30, 2023 | ||||
Foreign Currency Forwards | Selling, General and Administrative Expenses | |||||
Derivative Instruments | |||||
Foreign currency forwards designated as cash flow hedges to be reclassified gain (loss) | (1,500,000) | (200,000) | $ (1,100,000) | 100,000 | |
Foreign Currency Forwards | Reclassification out of Accumulated Other Comprehensive Income | |||||
Derivative Instruments | |||||
Foreign currency forwards designated as cash flow hedges to be reclassified gain (loss) | (200,000) | $ (100,000) | 100,000 | (400,000) | |
Foreign currency forwards designated as cash flow hedges to be reclassified losses into cost of goods sold over next 12 months | (3,100,000) | $ (3,100,000) | |||
Interest rate caps | Variable-rate tranche | Sally Holdings, LLC | |||||
Derivative Instruments | |||||
Derivative instruments, expiration date | Jun. 30, 2023 | ||||
Notional Amount | $ 550,000,000 | ||||
Number of interest rate caps | derivative | 2 | ||||
Cash received in connection with early settlement of interest rate caps | 2,700,000 | ||||
Interest income | $ 2,800,000 | $ 2,800,000 | |||
Interest expense | $ 400,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Notional Amount Held Through Foreign Currency Forwards, Based Upon Exchange Rates (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Foreign Currency Forwards | Designated cash flow hedges | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | $ 26,829 |
Foreign Currency Forwards | Non-Designated Derivative Instruments | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | 112,775 |
Mexican Peso | Designated cash flow hedges | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | 12,846 |
Mexican Peso | Non-Designated Derivative Instruments | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | 26,175 |
Euro | Designated cash flow hedges | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | 7,699 |
Euro | Non-Designated Derivative Instruments | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | 21,173 |
Canadian Dollar | Designated cash flow hedges | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | 6,284 |
Canadian Dollar | Non-Designated Derivative Instruments | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | 13,491 |
British Pound | Non-Designated Derivative Instruments | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | $ 51,936 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Net sales: | ||||
Total net sales | $ 918,712 | $ 911,387 | $ 1,875,767 | $ 1,891,638 |
Segment operating earnings: | ||||
Segment operating earnings | 71,408 | 86,461 | 157,996 | 199,241 |
Restructuring | 7,274 | 17,680 | 1,099 | |
Interest expense | 16,685 | 19,896 | 34,608 | 40,137 |
Earnings before provision for income taxes | 54,723 | 66,565 | 123,388 | 159,104 |
Operating segments | ||||
Segment operating earnings: | ||||
Segment operating earnings | 129,394 | 126,948 | 278,215 | 286,117 |
Corporate | ||||
Segment operating earnings: | ||||
Unallocated expenses | 50,712 | 40,487 | 102,539 | 85,777 |
Sally Beauty Supply | ||||
Net sales: | ||||
Total net sales | 530,246 | 525,785 | 1,079,718 | 1,087,315 |
Segment operating earnings: | ||||
Restructuring | 14,691 | |||
Sally Beauty Supply | Operating segments | ||||
Segment operating earnings: | ||||
Segment operating earnings | 92,134 | 80,940 | 191,308 | 181,563 |
Beauty Systems Group | ||||
Net sales: | ||||
Total net sales | 388,466 | 385,602 | 796,049 | 804,323 |
Segment operating earnings: | ||||
Restructuring | 2,989 | |||
Beauty Systems Group | Operating segments | ||||
Segment operating earnings: | ||||
Segment operating earnings | $ 37,260 | $ 46,008 | $ 86,907 | $ 104,554 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Disaggregation of Net Sales by Segment (Details) - Sales Revenue, Net - Product Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Sally Beauty Supply | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 100% | 100% | 100% | 100% |
Sally Beauty Supply | Hair color | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 39.80% | 38.10% | 39.20% | 37.40% |
Sally Beauty Supply | Hair care | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 24.30% | 24.10% | 23.90% | 24% |
Sally Beauty Supply | Styling tools and supplies | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 17.90% | 19.20% | 18.70% | 19.70% |
Sally Beauty Supply | Nail | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 10% | 10.60% | 10.20% | 10.50% |
Sally Beauty Supply | Skin and cosmetics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 7.50% | 7.40% | 7.40% | 7.70% |
Sally Beauty Supply | Other Beauty items | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 0.50% | 0.60% | 0.60% | 0.70% |
Sally Beauty Supply | Sales channel, directly to consumer | Company-operated stores | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 93.60% | 93.70% | 93.60% | 94% |
Sally Beauty Supply | Sales channel, through intermediary | E-commerce | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 6.40% | 6.30% | 6.40% | 6% |
Beauty Systems Group | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 100% | 100% | 100% | 100% |
Beauty Systems Group | Hair color | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 40.60% | 39.50% | 39.40% | 38.90% |
Beauty Systems Group | Hair care | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 42% | 43.10% | 42.80% | 43.30% |
Beauty Systems Group | Styling tools and supplies | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 10.80% | 11.20% | 10.80% | 11.30% |
Beauty Systems Group | Nail | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 2.70% | 2.30% | 2.70% | 2.20% |
Beauty Systems Group | Skin and cosmetics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 3.70% | 3.50% | 4.10% | 3.90% |
Beauty Systems Group | Other Beauty items | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 0.20% | 0.40% | 0.20% | 0.40% |
Beauty Systems Group | Sales channel, directly to consumer | Company-operated stores | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 67.50% | 66.60% | 66.90% | 67.10% |
Beauty Systems Group | Sales channel, through intermediary | Distributor sales consultants | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 11.40% | 14% | 12% | 13.80% |
Beauty Systems Group | Sales channel, through intermediary | E-commerce | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 13.70% | 12.40% | 13.70% | 12% |
Beauty Systems Group | Sales channel, through intermediary | Franchise stores | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of net sales | 7.40% | 7% | 7.40% | 7.10% |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Expense and Gains (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Cost And Reserve [Line Items] | |||
Total in Restructuring | $ 7,274 | $ 17,680 | $ 1,099 |
Total Restructuring Expenses | 4,912 | 12,638 | 1,099 |
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring Cost And Reserve [Line Items] | |||
Total in COGS | (2,362) | (5,042) | |
Total in Restructuring | $ 7,274 | $ 17,680 | |
Transformation Plan | |||
Restructuring Cost And Reserve [Line Items] | |||
Total in Restructuring | $ 1,099 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring reserve, beginning balance | $ 1,291 | ||
Restructuring charges | $ 7,274 | 17,680 | $ 1,099 |
Cash Payments | (11,952) | ||
Non-Cash Amounts | (3,106) | ||
Restructuring reserve, ending balance | 3,913 | 3,913 | |
Sally Beauty Supply | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 14,691 | ||
Beauty Systems Group | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 2,989 | ||
Closing Costs - Leases | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Cash Payments | (5,463) | ||
Non-Cash Amounts | (1,043) | ||
Restructuring reserve, ending balance | 2,190 | 2,190 | |
Closing Costs - Leases | Sally Beauty Supply | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 7,389 | ||
Closing Costs - Leases | Beauty Systems Group | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 1,307 | ||
Closing Costs - Payroll Expenses | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Cash Payments | (2,458) | ||
Restructuring reserve, ending balance | 61 | 61 | |
Closing Costs - Payroll Expenses | Sally Beauty Supply | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 1,540 | ||
Closing Costs - Payroll Expenses | Beauty Systems Group | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 979 | ||
Impairment - Property and Equipment | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Non-Cash Amounts | (1,469) | ||
Impairment - Property and Equipment | Sally Beauty Supply | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 1,276 | ||
Impairment - Property and Equipment | Beauty Systems Group | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 193 | ||
Inventory Transfer Costs | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Cash Payments | (1,372) | ||
Restructuring reserve, ending balance | 108 | 108 | |
Inventory Transfer Costs | Sally Beauty Supply | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 1,158 | ||
Inventory Transfer Costs | Beauty Systems Group | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 322 | ||
Impairment Operating Lease Assets | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Non-Cash Amounts | (594) | ||
Impairment Operating Lease Assets | Sally Beauty Supply | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 350 | ||
Impairment Operating Lease Assets | Beauty Systems Group | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 244 | ||
Other Closure Costs | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring reserve, beginning balance | 1,291 | ||
Cash Payments | (2,659) | ||
Restructuring reserve, ending balance | $ 1,554 | 1,554 | |
Other Closure Costs | Sally Beauty Supply | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 2,978 | ||
Other Closure Costs | Beauty Systems Group | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | $ (56) |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Interest Rate Swap - USD ($) | 1 Months Ended | 6 Months Ended |
Apr. 30, 2023 | Mar. 31, 2023 | |
Subsequent Event [Line Items] | ||
Description of interest rate | Under the terms of the swap, we will pay a fixed rate of interest of 3.705% and will receive a floating rate of interest equal to one-month SOFR. The floating rate will be reset monthly and net settlements of interest due to/from the counterparty will also occur monthly. To the extent the floating rate of interest exceeds the fixed rate of interest, we will receive net interest settlements, which will be recorded as a reduction to interest expense. If the fixed rate of interest exceeds the floating rate of interest, we will be required to pay net settlements to the counterparty and will record those net payments in interest expense | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Notional amount | $ 200,000,000 | |
Interest rate swap transaction effective date | Apr. 28, 2023 | |
Interest rate swap transaction termination date | Apr. 30, 2026 | |
Fixed interest rate | 3.705% |