SBH - Earnings call transcript Q4 2017 | Sally Beauty Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Fiscal 2017 Fourth Quarter Earnings Call. At this time, all lines are in a listen-only mode. Later, we will conduct a question-and-answer session; instructions will be given to you at that time. And as a reminder, today's conference call is being recorded. I would now like to turn the conference over to Jeff Harkins, Vice President of Investor Relations for Sally Beauty. ahead. go Please

Jeff Harkins

Cynthia. Thank you,

items Chief reconciliations Don Senior With non-GAAP call Chief and its Vice are the Those Chief project, call begin, such to Securities update factors be plan, certain I information, as most me adjusting or including Commission remind filings has we Section statements during like looking The cause company undertake President or in and its within earnings The looking and forward the factors materially meaning Act would statements. and the by including matters and differ and explanation Sally does its on on of that of this made comments information these estimate, financial measures financial words of website. identified Brickman, Chris XX-K. Financial assume, and that provided to described statements Officer, anticipate, believe, and you can its continue, will, its today Securities the contain similar such company phrases. Executive may, are of a forward business are a of statements the Before Form should, press XXE publicly subject Beauty detailed not trend with or to obligation may could expect, release Exchange from as contracts words Many revise Holdings' forward Officer; Exchange number of results and looking in recent forecasted use on President, Grimes, Report These Annual XXXX. Operations expectations. any Officer. actual to of

call like to Chris. turn Now, to over I would the

Christian A. Brickman

you morning, our Thank everyone. us earnings quarter for you, for Jeff, call. and joining good fourth XXXX Thank

of results sales of Even after more quarter on decrease discuss for impacted natural have detail. margin. expectations. full short fell overview year Don performance We First, and quarter strategic the the the considering review we in our essentially and revenue brief then in our fourth our experienced gross the slight September, fourth made flat progress quarter, and disasters the in our provide impact of initiatives. a which I will will quarter and August our a

However, savings announced refinancing, per earnings recent to and from the we adjusted benefited plan, in still from the previously repurchase meaningful restructuring our share growth debt deliver activity share.

continue focus an combines balanced will which with approach business managing a investments long-term discipline our to execute to on our intense in retail challenging strategic efficiencies. organizational operating We and environment,

year, the right-size this in the initiative our environment cost goal light to the reduction expenses. a and restructuring structure earlier recognized operating know, we need our full and you year with XXXX lowering cost of As current of retail launched

quarter in have impact expenses inflation of adjusted the centers. distribution growth these in total stores We initiatives, flat for and almost full execute store despite wage operating in and base our year continued resulting to against and the continuing our

of support the million the initiative In recorded charges In businesses, operations. the and fiscal realized addition, an from realize a this range in million to approximately focused focus commencement our approximately to morning be year XXXX, international international we with improving $XX of we million in to plan announced incur significantly range approximately to expect on benefits fiscal initiative, million expect XXXX. particular our $X million $XX in annualized million to $XX in of with $XX on of benefit of restructuring profitability the $XX restructuring with we the this of European

today is households and than two-day will believe end of the improve this which delivery XXXX, experience to XX% investments, to below strategic We long-term of U.S. our by and investment our in we well with accelerate comparable the goal customer Regarding plan our of capabilities, significantly more the fiscal e-commerce QX. benchmarks. improve conversion, providing

we a will supply that will the and several phased-in chain embark addition, consisting next modules over platform, out-of-stock reduced increased to inventory implementation In of assortment add visibility inventory, tailored and sales merchandising expansion project several important lower from the meaningfully from and be lower capabilities. capital new margin more from gross obsolescence, on a few of levels product inventory forecasting benefits, intend including better years. This and

pricing, balance quarter. efforts, segments, with BSG system a are part maximizing improve experience, will the our fiscal and for promotional customer executed focus both the credit to respect a card Sally EMV-compliant always drive processing. core BSG and to we store In during and in the our for XXXX term. year initiatives sales be on Finally, implementing to that CRM new gross With latter being of will point-of-sale marketing on we long enhance allow trying our profit many of short-term the

SKUs SKUs that reinvest that vendor on believe in minutes the XX the unique Sally, strategies contributed in pricing points We we of launched have fourth price and of expansion order fiscal fiscal support, pricing mass gross In margin continued points. For our expansion improvement gross on customers. XX BSG some now through increases, in of we prices the segments. each to I'll fourth consolidated from reinforce in overlap the focused with of expectations a and gross basis spend with be margin will well position competitive benefits initiatives few quarter were XXXX. zone lowering Sally, to core full-year of value quarter, plan competitors. designed our in captured the third in these tactical with margin additional growth contributed drive on business The as as late to quarter margin more to basis year select

in the implementing and to our traffic session, stores they will to be this value communicated change and strategy holiday not drive year. prior prominently our throughout shopping will communication promotional This now, depth We of materials. frequency and the are or deliver the designed change

our domestic line stores. Sally in continue on to growth We to drive focus also as means a innovation top

with influential beauty month, several We cosmetic jointly be bloggers. are excited COL-LAB developed and launching this to line Sally a new

will Georgia. by media social Beyond be including a launch color new this, influence. easy-to-apply that new planned line, appliance BaByliss Cody, bring Other color which will new approximately developed launching launches the Arctic year major twofold. the vibrant of Sally an new Fox, professional a a important also care is and for line, we tools vibrant line this professional time, line primary first we for will by this in backed program loyalty multicultural in of XXX (XX:XX) test to Florida addition, a file hair In monitor our goals brand, a care continue new to stores are and The hair test

new disruption. Club to the program without members want we First, transition Beauty current Card to

increase want regular time them communications. acquiring over basis by loyalty more and and engaging we traffic email to with mail Second, via direct members on a

feedback seamless, our have need customers that positive from the indicating in been training early and received a to to While traffic. our more revealed we encouraged are has and move order and pay-for-discount we program for to to learnings drive that communication program by relatively from associates the customers improve a the associates refine rewards-based our

and in we for customer adding neglected December, largely in this going Additionally, test first customer will forward. the fix program in was be plan the to we phase, a the This stores. parallel professional

pilot making stores. XXXX, America year we test rolling half will program decision regarding the to all final continue and a Sally the first of the Over before to refine assess fiscal North

a marketing marketing so approach efforts, to and and CRM messages that continue loyalty deliver compelling integrated refine across to drive our to our our clear can traffic we stores. vehicles we Beyond value all

events cities along these strategy. tutorials engage we influencers, approach, message DIY postings encourages mentioned, are the country, at a educational blogger of the social impact acquisition reached align educate social we millions that who to Sally's Angeles all Chicago, across will As of free with beauty integrate our media leveraging already events, events and materials. customer this the proposition, expand creating enthusiasts. presence. extends in atmosphere major share of the mediums and calendar beauty Orleans, and previously the and order in The in which influencers have vendors with New been held Washington have a media In of beauty Atlanta, store D.C., of and to developed events hosting power products, beauty throughout across value these order Los Beautycon low-cost in including we XXXX increases and live marketing To fun

marketing in New events excited are of intend and the York going upcoming about prospects viral to this campaign, and host We including Dallas. regular forward, events

representatives also ticket existing customers, girlfriend-in-the-know we customer actively and are genuine to continue associates. sales utilize a to able selling a engaging loyalty believe and to average which We our to model will is value. inspire create conversion drive increased appeal and higher shoppers which in new connection our and customers, authentically customers designed By between

awareness raising customers don't we stores. delivery investments reaching e-commerce In testing aimed addition and I to our Sally's new are that earlier, at programs mentioned new brand currently shop the of

delivery to example, this Dallas. in with historically – Now's the new continue this Now customers Amazon model. new to we model There existing partner between Prime two-hour hope Prime Sally's to attract customers. little has customers we And Amazon been overlap For to and we while to very rapid attract test to a customers and hope delivery

of is we work with increase omnichannel Prime for with to to the online we include to investment objective program future. the testing delivery Now the is Amazon in Sally and to undergoing the cities plan this our customers forward. other plan The in access, build achieve While still testing, delivery Amazon on two-day going journey in to of customer metropolitan and same-day

differentiate brands for them clearly portfolio a competition, of own have the that from make consumers. need We more us great to accessible we but

leading vast BSG; is the partner U.S., to for as Now, trusted beauty of professionals. distributor beauty majority CosmoProf products turning aware, professional our the the the business BSG a of is you're in brand and

is is recently what to As to stylist it, one put Nike stylist athletes. CosmoProf

the of strong hurricanes. both to traffic position, quarter year's revenue impact this when and surprising so up strategic Given even is that negative were the with compared not prior it the

of growth top new by growth addition, a expansion. drive team over prior brands. support continues by its exciting position, margin leading and winning In up were gross earnings to In year BSG line driven sales the operating

additional Puff.ME, example, being Luxury, introduced Lash few to ColorProof sales over For continue Babe Celeb since quarters. Mydentity, last the and drive

sharing pruning more order are SKUs worked deploy Team lifeblood has brands of vendor and BSG of in to stylist influencers a these to we expanding loudest social order to XXXX, social broaden major as and of influencers followership in techniques. vehicle capital acquisition and us made this reach investment develop recruiting from launched and our brands, products customers, professional believe work mobile We will media lines community primary impact. within first to CosmoProf and beauty while to as industry, up with new voice designs, our uses our In learning and partners new the continue that In app continues and the moving be to slower working and community. space. well XXXX, and efficiently and downloads beauty the will on this greatest we reach solid stylists. In active efficiently. for we users, number within a development the the gives ideas with our brand brand social new CosmoProf hair our broad and team Meanwhile, New garnering professional in media as market of the positive community feedback growth our experience Artistic media partners

developing successfully usability have to version launched we app stylist. the during July. order the improve of to are in and iPad the push for Canada capability We notifications, the we the month Additionally, app in of now an

drive but are more to actions build the specific incremental strategic our the us position promotions drive in and confident To success. summarize, continue take we enable front, fourth email quarter, large progress order our to to stores. that our solid On should to we quantities traffic to and in for in we targeting we the we business better. us to website sales to database customers future and can the And made run customers by continue efficiently CRM do

in Now, I the will to more turn Don to the detail. over discuss call results

Donald T. Grimes

you, Thank everyone. Chris, and good morning,

impact result disasters, meet Chris did expectations. fourth quarter's of natural the revenue not even our noted, the after As considering

of including and efficiently, many However, of we are strategic run going will announced to fiscal just more fund position And initiatives we to us initiatives the well the believe taking plan believe into execution international we discussed. us the today, restructuring beyond. the important will that enable Chris successful the forward XXXX these steps business

same-store sales hurricanes in Maria number on details some prior very million negative sales $XXX.X fiscal both growth to the Turning decrease late Harvey, resulted in and basis growth the store of Irma, end approximately from quarter. same-store a the the the August slight and sales of versus a was of closures year. of through and X.X% points. was in impact X.X% The revenue quarter. XX Hurricanes Consolidated the our the quarter, year, decreased of

a was approximately points shift a flat a on and impact and amortization margin and the segment primarily which essentially both Gross operating by prior respectively, the net translation in in flat related write-off in both plan growth the was tactical $X.XX per million currency restructuring of by favorable share the both per benefits slightly asset earnings growth a XXXX segment, year as compared growth. closures the strong to year, but per earnings challenging $XXX.X negatively restructuring which were impacted margin prior year's share, and share by share. during from prior the reported both a operating were We adjusted were $XXX.X operating a essentially of our of at XX operation approximately labor Sally new at total full the general, was XX year, unfavorable of and million occupancy of almost hurricanes benefited the margin. fiscal impact store shares million reported the Restructuring in were had revenue from The retail the cost expense the versus prior foreign fiscal and year. addition per aggregate diluted quarter of favorable hurricanes. diluted quarter-end and year costs foreign increase in Additionally, count strategic shift at administrative North exchange repurchase were $X.XX exacerbated U.S. in X We $XXX.X loss repurchases Adjusted we were Share customer operating the initiatives segments, offset Plan, the in XX.X%, to free higher hurricanes in and negatively translation. and operating very by million. excluding versus and pleased shares the cash Adjusted quarter million the new depreciation up weaker the The basis million with in impairment. quarter, earlier pricing representing million costs of $X.X those impacted XX.X%, revenue year's and The mix $XXX.X deployed adjusted by $X.XX. compared selling, offset approximately million. to of and to reflecting earnings environment, deliver prior continued approximately focused mix. of impact dollar. X.X% negative stores, an Adjusted the $XX.X cost expenses in the additional approximately earnings adjusted from quarter, earnings such benefit million, to $X.X margin, related inventory the store flow to announced excludes earnings adjusted charges the in the of for XX associated in to American both X.X% impact Inventory a brand, down and the

of X.X%, by full-year billion, net hurricanes impacted both full sales a full-year basis and approximately decrease negatively fiscal and sales points. $X.XX same-store declined X.X%. sales The consolidated growth growth same-store the were year, XX For sales

currency sales Foreign basis impact of approximately a XX negative points growth. consolidated translation on had full-year

and $X.XX. the year. XXXX both share, were per growth Adjusted year by to impacted fiscal of basis year. an of fiscal per which diluted year growth the addition, of In for X.X% hurricanes XX sales fiscal negatively year, earnings diluted by day its earnings per compared consolidated in share sales year a selling the $X.XX year full share, $X.XX The growth fiscal approximately impact prior was fiscal to extra points. in the approximately leap prior adjusted and X% earnings full-year diluted negatively growth same-store Reported in compared XXXX XXXX, reported in were

performance; Turning to $XXX.X a quarter, in Beauty prior-year Sally from segment generated fourth X.X% period. the of revenue our of segment the million, decrease

the margin and growth points Foreign XX States. XX favorable in in the the currency the X.X% quarter initiatives points primarily strategic decrease Reported to basis sales sales prior translation were the basis hurricanes. approximately boosted pricing up and decline. shift the XX.X% earnings was to of year. due contributing of decreased basis same-store segment's inventory Gross impacted United Operating XX revenue to segment professionals in by between with hurricanes were from the the related decline points. decrease X% and margin write-off repairs XX.X%, was year. point Operating $XX.X million, negatively mix earnings the the a a versus Operating customer prior retail of the a and by XXX-basis-point

$XXX.X from sales XX stores, Group by the from quarter of Beauty the X.X% Systems same-store Now, the hurricanes. partially turning versus impact negative was an the incremental sales, revenue up in prior growth new increase acquisitions, our driven to BSG year, net by and million, offset in segment;

currency BSG's initiatives. the million, X.X% essentially were gross the by quarter basis improvement. X%, completed to in prior the points XX.X%, a quarter. revenue of Reported the XX grew from during growth Foreign prior BSG's gross modest strategic growth same-store from the up year, up by We the XX in the from margin points. approximately driven margin by for the benefits revenue basis year. flat translation points. margin our pricing hurricanes impact was sales XX.X% $XX.X Restructuring Plan increased XXXX driven Operating quarter, earnings BSG and negative basis including XX to was fourth Operating

bringing earlier, representing Plan noted Restructuring the an Plan Restructuring approximately The in XXXX restructuring in recorded the return. to recognized we annualized full-year million, fiscal Sally planned million As from the fourth strategic quarter, financial million accelerated We with now restructuring estimate excellent restructuring million. benefits to approximately $XX to XXXX $X.X store of and footprint Loxa of from $XX.X benefits associated store guidance in of e-commerce site, associated excess XXXX. quarter, optimization our charges ended the charges approach in an the revised $XX up costs CosmoProf the unprofitable closure previous our primarily Mexico. the of was the the with that of in charges U.S. costs total into We due

noted our our indentures. new interest than our refinancing XXX fiscal of LIBOR debt. fourth which rate July X, earnings favorable an the cost downside bear lot debt of overall at heavy so wasn't lifting quarter in closed. is effect flexibility, quarter. on remaining to comprised scenario last also purchased XXXX. that early finalized on LIBOR a loan. specifically, deal the of were still points, still X.X%, debt bearing to financing the we rate by respects negotiate a will while cost $XXX redeemed. rate we order cost a which X.XX% a to we lower interest that day covenant-lite into notes cost notes million floating the all-in floating lowering or come spread environment that and yield million institutional the to of yield fixed provides loan As funded the exceeds call, a tranche able More were term X.XX% the our is worst-case into caps is rate of notes is interest the high on deal X.X% in In debt, if mirrors in at basis X%, that did play redeemed means our to plus of entering protect redemption The This high operating rate our also million many The we due the borrowers, $XXX senior seven-year a lower $XXX million $XXX We of third a refinancing tranche additional until on a term floating

provides to loan, five-year greater flexibility with amended pricing agreement. us respect covenants. to addition a ABL million simultaneously improved margin $XXX and the financial In we new extended credit agreement The and with amended of our term

in from Hurricane we the half for expect U.S. Turning in a a both fiscal of impact Rico year. in from XXXX, particularly guidance continued Puerto environment challenge the Maria the to lingering in the hurricane fiscal retail and first year

X.X% the positive be impact the decline such, more As in half the we in half consolidated in quarter year second expect first More approximately against versus the comparisons second we approximately sales same-store the of the quarter. sales challenging expect with including fiscal of hurricane, full-year specifically, to to same-store of fiscal easier year. turning comparisons first the before flat

driven net XXXX. a in both noted modest strategic including margin approximately XXXX, merchandising new only Reported level slightly a U.S. Sally to Additionally, fiscal to expect to prior to by pricing closures, $XXX fiscal on to Full-year decline noted. the value partially SG&A, expense, count resulting XXXX, investments continued a earnings incentive the expectation expected for center store we to an in lower and expenditure Plan Restructuring including businesses also both fiscal both be restructuring is versus the compensation allowances, normalized to slightly are in expected increase inventory brand's wages, segment, gross discussed and expected all in support to earnings, are offset the expected number BSG system strategic plan hurricanes to investments from offset Capital the be expense growth, offset strategic international operating increase distribution velocity approximately U.S. designed planning openings initiatives the the the and to in by expand points, that shift are basis XX.X% initiatives the primarily approximately U.S. investments XXXX, be million. the operating the cost XXXX including adjustment Adjusted business the proposition. customer years, in new vendor by unfavorable both behind is the and Canadian Full-year due versus depreciation earlier, restructuring of key installation impact continuing earlier. benefits year our expected of in Sally reflecting impact segment strategic due pricing to store just Chris for partially and by of of store new the and and and point-of-sale business, in flat the store low in business, approximately fiscal XX amortization e-commerce favorable year. investments mix typically SKUs accelerate and in of expense in XX.X% the support shift operating year both mix systems

lower count However, result recent to year year in share both our from full share adjusted per reported share. and and debt earnings per full growth in earnings solid year diluted expect full refinancing diluted we average benefits

of While system including promotional refined strategic the and the working Sally implementation strategy, social new new marketing media-based product test platform, initiatives, a effective new to a program, of the the and to to platform, time both merchandise our more more your seek will new we you in this chain outside opportunities within providers. run organization continue service supply and be compelling morning. point-of-sale loyalty business partnerships execute introductions, more efficiently, own productive BSG Thank important for with our

to to Now, back I the turn for question. Chris your I'd like call take over to the and operator

Operator

Thank you.

Our Rupesh line with first from question the Oppenheimer. will come of Parikh

is Your line open.

Rupesh Parikh

Good morning and my thanks taking question. for

easier I the quarter slowed So, Trends again BSG wanted with touch much to this segment. a even on comparison.

get if of to your in there's changes terms on that what are sense, seeing you there point, guys driving Thank could the what want Just competitive you. any vantage from out and slowing, be a front?

Christian A. Brickman

bit Thanks, we've in and is transparent pretty Rupesh. over our tripped would that. segment, this, shoelaces BSG a which the What say been we is, about I

back let in year. the throughout from team months been growth the positive cut in that we for first to inauguration, really at in We've bundled the far. merchandising BSG team the BSG. dramatically core get to vendors working and time the in overall changes for ago, in care, where our on too year; fact, around little throughout category they a is, November the growth back almost trying strong obsolete on and We've in a BSG, back the miss reduce swing problem election associated If year. The the color in too the look track. but inventory. you pendulum hiccup the reality with funded And, order the strong to promotions was The made last categories the far; was promotional in seen on year turned six it's cut we've

BSG a I environment. confident in position. in quite strategic So, feel great is the

I just somehow a of like of in to and the the is, need things the to business think we fix it's retail; think eroding mistakes reality segment. And made. its differentiated it's we with rest great ill-conceived some very scale the that it's

Rupesh Parikh

to before. some getting chatter like BSG exclusive And products been the Amazon been may there that I guess been related there's of too, some has have out

in guess, the if are exclusive and thoughts I any versus past? terms changes Just for any seeing you products of, what your guys

Christian A. Brickman

– mean, obviously on and retail the not No. in brands Ulta, seeing it salons, shift the really in I seeing retail it's just Amazon, do retail at channel sell the side. you're so at and professional side, wholesale at We're both on these now side.

Rupesh Parikh

then last on Okay. forward, of you terms get the if a Great. business. profitability that segment? a vision the to about you And for just become e-commerce Sally could at you're big sense I e-commerce, want look in how do of also for my going e-commerce in growth have question, Beauty And thinking how just

Christian A. Brickman

us multiples of to to those levels are below XX% they're it's the want reality think The now below. is to conversion don't delivery by we second help quarter well unrealistic set I the making at to investment really comparables, and improve two-day but targets, should think levels. multiples of where right we're country We our get by the covered it conversion needs be much today. bigger,

growth We big been that. of as shipping improve we shipping of cost It dramatically to of our think will out we been to it multiple it as expecting said, That think we're focused as on going core is the shipping end distribution also second profitability with points points and at profitable. little historically, a our should profitable, to up it's all with we well. so, that And need Dallas four categories, be will e-com and more it has reduce equipment quarter more profitability being that we've doing shift we needs been instead And to as forward. help, segment the lower, shift business. but more by

Donald T. Grimes

gone the both picking in cost about have we as what our Rupesh, well facility of cost. half live as this cost facility. is is Don; was it itself one The picking delivery Texas the in where Denton,

we the for and e-com single-digit UK So, part a the to And your to business term e-com expect the the penetration then and question, the that of our rather of the improve where towards in short will U.S. is penetrated that rate, high in to trend the term. itself region first most profitability of business. in long medium we're in would than heavily

Rupesh Parikh

Thank you luck your and best of efforts. with

Christian A. Brickman

Thanks.

Operator

Thank you.

question with next come from line Mark the Our Altschwager will Baird. of

open. is line Your

Mark R. Altschwager

Good for question. Thanks the Great. morning. taking

mean, the below impact, your excluding on sales in the line, Just comps expectation. I hurricane came

comp on seeing you point, down product – at intros, look some is change of this of some for marketing, the the do have social just less despite think presume from a you the comp year. you're where you puts you're seeing I the said X.X% traction? media-based priorities next thinking you're how takes about what refined doesn't which trying so the strategic As benefit a hurricane quarter where do line – and think top into to you're better at first driving the think expecting abating, promotions understanding you of the headwinds QX much

Christian A. Brickman

Don QX. in. that let So, and There in And begin on is I'll throughout dissipate hopefully, chip let significant that we Sally me then, the to fairly start go of then Rico Puerto on the will a impact as amount business year.

business, Sally a Puerto know, our is than larger Mark, portion As you fairly of may large most retailers. Rico

headwind create in does a bit that a QX. So, of

of through leadership change Our the gone in feeling significant change is in and course the Sally strategy over obviously year. we've

coming these SKUs both which the I on our pricing just trying get color out the and of beginning e-commerce launching well to and as fruition, going in in now more new focus big and on think we're we're some initiatives, of overlapping brands our some are make as the see deal to to competitive come initiatives that categories weeks, like our core days tools. to pretty a of

year of some in clearly and both think about progress the improving there lot make So, the marketing that front other a front I'm to said, this the occurred associated change. reality on Sally. going that's is, we're there's with right some That excited The missteps team really now. I being disruption and leadership

think starting I'll throughout get QX. that So, build yeah, the year. real about traction should we're given and to let you Don, I some And that, talk

Donald T. Grimes

of impact QX for all Puerto the I experienced add expecting three in from expectation hurricanes in color Rico QX impact the comps. the the hurricanes, more We're a just QX. hurricanes will lingering particularly an on from little of in than we actually

impact about quarter asset is estimating to minus negative a that write-off we're revenue we in have for QX; just, it's – in in hurricanes outlook more impact. from about charge contributing the X.X% won't double But first a QX impairment had profit gross the that inventory the comp. the it's and So, revenue and of we which

Mark R. Altschwager

And Thank on and allowances? be you helpful what your year, That's Don, on this just there plans then, for would targeting the vendor Are any you. inventory. reductions impact color. update

Donald T. Grimes

improve Yeah. We're hard inventory driving the teams turnover. to

that in investment remarks the about the have allocation some antiquated We his inventory planning on Chris talked and new system. systems,

dollars biggest that XXXX. also fiscal business early on outlook to allowances margin and XXXX, XXXX, and to to that, an is to but so working we the on in until mentioned that that One wrong for one Having team, fiscal less are improve inventory hard in late Chris fiscal merchandising are bring more clearly said the right BSG of from inventory be if visibility in the And less, to in and capabilities. fill gross new a financial rates. kind hard negative of inventory leadership component applies and start vendor we forecasting a not reallocate the impact, have We benefits of benefits just impact to our with inventory allowances, working purchase better BSG you the is the won't could reduction a there and – as vendors there's you there's our globally. to and in of increase vendor of permanent Sally see

Mark R. Altschwager

you. That's Thank luck. great. Best of

Christian A. Brickman

Mark Thanks,

Operator

you. Thank

the line Cowen next question Oliver from & Company. Chen with of comes Our

is open. line Your

Oliver Chen

Hi. you. Thank

was regarding Prime relationship. question Amazon first the Now Our

the what So, if on Also about less and different types next findings scenarios? interesting question are the is there's your dynamics And It demographics. there's this thoughts respect with the unfolds, curious as monitoring loyalty any are which program. attractively factors to category like our of sounds you just overlap. and

developments If learnings you for here could here? speak looking to to look Thank more as this you. what forward in she's and program we early

Christian A. Brickman

with So, was far that sales both is to our looking Now current hit Prime of our incremental of base. the overlap obviously. overlap were little same-day let cost me number there's we've Oliver. what our one sure And virtually found thing at customer or make relationship, that base those, given were thus delivery, we no very with The the customer

implemented. be in we that, that them given We as Amazon, So, it. expanding we've obviously, and are their excited them work done we'll for priorities would pursuing stores allows the It's expand and, with there's capacity well about so other well that. as to

On would our different little been it's fine business, to we we customers skew that. terms of orders. number heavily you in that make side mentioned more a is It cosmetics is think, towards which not But there, I in that, tends not mentioned than sale. again, just than change. see to seeing categories, what as say with one focused We're category. we're sure expanding our with be average of than overall bit tend the earlier, let's us. radically aggravating We've other than other it terms cosmetics little is, I The to loyalty, does more other reality not the a

allows significant the which communicate obviously sign-ups customers. are of to to larger digitally a increase We into group us in seeing much program

seen big up the increase the of sign we've it's percentage obviously So, free. because who customers in program a

delivered professional of program, that So that's that and the a is that it we're back the the now side. from some communication, pays obviously rewards we're sufficient think they seeing and And of A yet of the and that going the were work's a traffic lot of lack What I those the is card because way December. that now. excluded of such are issues is not communicated, addressing in some of was tier some positive loss the revenue. incremental

that got Our on the before to ready overall we've to but going we're in that. program, to payback to close continue gap continue to terms we'll do hope the refine it is be of

Oliver Chen

different expense, a relevant of on question love thoughts would estate and And digital your overall a with about happening versus options real store what's is investors physical, are your question final Okay. flexible on view how for dynamics as and out and count, just we're and playing from to with different relation you in getting strategies. rent think what we your focus should

Christian A. Brickman

It's real positive still quickly. slightly inflation let's this positive on part, the at diminishing but start So obviously that's rent point. estate,

continue inflation down. rent Our drive to be hope to would

that is expectation that's Our possible.

you're as of segment share openings; roughly opening terms flat. In of new that have that stores internationally our some net then continues gains and of few we we're to is stores; closures whereas BSG and positive but the strategic we're it store is and a Sally exceeded all brands seeing negative still gains our are opening what be the our still footprint, net in net new

coming we to likely or think certainly I that's game, here as see if We could continue the share service extent our of game where we that obviously e-commerce growth improve figure competitors. in lot going allow suddenly go. we've tremendous be. we're change If base. out a e-commerce to levels, in to years might as some got We'll changed that the have the us from our that steal to store don't watch just stores. We're we in

we that stores fact, lose no virtually In have money.

for create order are organization. we're which amount bottom more as stores closing that means to make our closing So, we're us in at either significant or have decile, in marginally point, a money sales to of profitable, an stores this if we breakeven

We to do. So, tail terms careful just we be obvious can off. we we in the cut don't this about have of what losers have

Oliver Chen

that. for Thanks holiday. Okay. regards for Best

Christian A. Brickman

Oliver. Thanks,

Operator

Thank you.

with question Markets. next the Our KeyBanc Capital line from comes of Jason Gere

open. is line Your

Jason M. Gere

still deficit card, in you you're another benefits is even to factors but When and that the little look when you that you at these and to up get question and your I bit kind seeing out out the once retailers beauty the on algorithm? curve about there other that ramped health is at points. environment level there, for you about just be, guess want figure of – the I you try been level? being grow e-commerce could the and the versus So of start kind a this you low behind the talking one the saying do being business get the how the you. wondering loyalty new long-term the there, Okay. with think out think do the the Maybe obviously what's optimal business of of the single-digits out to you've especially that able where see just changing with first look now side, disrupters Thank be category, your once business to on way or you you you to with as of

Christian A. Brickman

Yeah.

is we obviously a value. salon do what on in business a here. and brands. I at really case reality and and or differentiated big do focused business because offer in have you're assume with differentiated packers very what question, have many think them that's better the we owned sell model we salon that a contract formulas, majority good we of And very a The products to develop vast a Jason. manufacturers is, is direct is or or salon-quality model do exclusive go We to majority – significantly we I Sally

is the people of the sign a I bringing way email a they're more big was accessibility creating and we to charge is don't a we of and up. can't store selling couldn't result, in so can't in program brands really get I world, big cases. media, competitive the we for not digital weren't as until do the portfolio and there's present we in talk you media; forced of in get of result So, we to we've to buying. overlapping traffic lower customers to in that, many were is and the access of of which there's not problem, couldn't the but our platform an And barrier people had generation problem The them if was terms up low-cost it's the communicate recruit in that nor have Therefore, sense a we're in that you think was, about them we're stores, of, e-commerce back stores. that our and their in with believe loyalty social sign we address, as how other a presence don't them built difficult issue social course, the next those products to customers a experience that digitally. is exciting customer problem excited a,

format our in of So, not think to – just on our we have making want and to we'll side talked improvement to do generation consumers big platform that so continue channels that – on some see you'll longer to get communicate they the the media we working digital right e-commerce them program And be allows our media also more this progress that a in in us us people that. I our delivery in we're our think talking is I that wherever a social We're low-cost and want to to with websites utilize. finally, back next hard up obviously we're lot to overcome. do but barriers working the people on they way. in going then low-cost, they digital to to bring model And loyalty invest a or of that in the side We're so we're website. the continue invest of can to no to sign what back to in on side opposed to stores as purchase marketing then older

different issue pieces set there's the that is, and a and platform I can get things think think different do for on a a very business that time products right growth differentiated proposition. very So, allow all we're in should we value right those working of we the the because I if of over then offer

Jason M. Gere

the have loyalty mentioned don't the strategic kind was traffic versus I I existing program, Sally, other And question. – Don, adding membership the to this, was if loyalty what do your change? remarks on And of the and card And know year-over-year in ticket? then, Okay. more one you with what

Christian A. Brickman

we dropping it of loyalty maintaining which and leadership that of the mid- tested program. change to high new as our loyalty teams the of was on program around believe we is the I the single-digits, in it the some while current year-over-year. part answer terms ball down I'll was BCC focus

now, we we're when that was it that the of that more over so pressure team's to over the make easily some current And of program. shift we're the BCC, we new the by hard states we maintain The two result BCC customers ready. is just, on the way, testing in net working sure shifted our to can

Donald T. Grimes

was initiatives. by flat, were up and traffic. UPC Average modest decline by ticket those pricing (XX:XX) was driven the obviously in a about offset

Jason M. Gere

Okay.

Operator

Thank you.

Our from Linda Bolton with Weiser D.A. the of comes line next question Davidson.

open. line Your is

Linda Bolton Weiser

some could FY Yes. you benefits, quantify and please the of Hi. XXXX restructuring FY XXXX there's the wondering, then FY into new the XXXX on – carryover benefits I benefits. was

we any should quantify XXXX? the So, benefits half the in in of see terms what of way is to half of second there XXXX versus first

Donald T. Grimes

an For $XX incremental Plan, related million the domestic, there's the benefits fiscal XXXX Restructuring to of in XXXX that.

half You this first predominantly that in year. would fiscal see of the

from of to international starting we're plan of benefits QX. those coming new are the benefits over rata announcing late pro the see through For organizational QX restructuring that most you just that changes, today, will in kind really kind given QX of

Linda Bolton Weiser

professionals. the comment that I was salon your salon versus for could on the to regular objectives And here in on you that? a with ordering if customers regard to two-day big there same-day professionals? regular retail wondering front, consumers online delivery, delivery and is And or the difference Is oriented then e-commerce

Christian A. Brickman

Okay.

and me hit let try So, those.

the investment when months capability call which to put side, over one the BSG BSG websites, the on CosmoProf orders batch XX salon the we we've made the last already put in On of warehouses. what capability a e-commerce professional is to (XX:XX)

two-day ordering a seeing salon model delivery be should of all they So, now. almost our for online professionals for

previous facility up in running our got our just We October. Denton that. Columbus addition on in and behind way were we Sally, For first facility to in large

XX% delivery Linda, to your that last forgot we And XX% two-day apologize. then, that I of of be over should gives the question. I roughly XX% in January. to part so, now, country the us taking and And

Linda Bolton Weiser

much versus retail In trying how I'm consumers? salon professionals your order at words, get regular to the do or... penetration highest, where among Well, other online professionals salon is

Christian A. Brickman

think our to salon service improve of part service salon in of model is with We change and It's the gotten fact that the that that it that a professionals sooner as currently the multiples professionals of we've on business. with we we think But is will higher segment today. definitely higher to the level consumer customers.

Linda Bolton Weiser

work about (XX:XX) type lines wondering and cosmetics introducing, you product with when mention of more you're just how I'm then, cosmetics label the cosmetics like strategic private think is exclusive affects that, the to new it then, that several the can hair in you And some focus brands would mention and you well talk about lines lower structure Okay. margin business; that or do margin? nail? they did in and you And do or higher

Christian A. Brickman

engine line And is be a marketing which is mentioned we they behind in will key so, jointly base. it, which cosmetics social developed with their line and leveraging we media the one followership influencers, COL-LAB,

think example. through it's think more higher for to the it this us, the value, a but or to importantly bring but brings is much think store chance and as stores high-end mimic it are cosmetics that average incremental about Sally our a us a Sally and it's they great does people than for customers category line; going social it's great don't And new to yet premium who are who to but margins I expand through really hear I a that media follow, to still Instagram better gives actually cosmetics website. Sally influencers an designed massive store. game-changer I what at us, offers it our for margins the

Linda Bolton Weiser

year finally, for for wonder – for I an Don rough estimate then, And expense has the Okay. FY if estimate a interest XXXX.

Donald T. Grimes

the structure as a debt have fair to But opposed was it that the now goes a rate million debt depends terms would $XX $XX in capital estimate. in which LIBOR be because essentially fixed floating the where long-term to is estimate do on we range debt. rough The reduction prior some million all of rate

Linda Bolton Weiser

Okay. Thanks very much.

Christian A. Brickman

you. Thank

Operator

you. Thank

comes Reuter of William question from Bank the with next Our line of America.

Your line open. is

William Michael Reuter

I morning, questions. have Good two guys.

vast is that about brands. question your mass. talked your majority of to products comments, prices with SKUs those then or that earlier you the prepared reducing in exclusive also The But first in are owned are that overlap an you noted

your little point target light I secondarily, at about you percent is ratings are guys in talk of viewing and what this And of leverage and So, mass. question; tough could Thanks. kind you your your financial there products bit if environment? overlap exclusive much the a of with guess a are then how how

Christian A. Brickman

got will take and Don one I two. So,

our the reducing is the priced brands price roughly at in of we're XX% value attractively the is probably in obviously don't comparable matching SKUs Sally look are stores, consumers get you those they on sales. that percentage Because their salon-quality when our they're And If slightly that we of products want our it's to be so that a SKUs, owned now, idea perception in head if communicate our brands. priced. the price-to-price we higher smaller

that comparable So huge it is of our a a it's to products if see product. somehow really them that's great is or or on to But is they mass into that CVS, comparable most Target though comparable be even and would don't that example someone product very That were highly we million see the get want with so they compare brand virtually Wal-Mart or perception price in is to sells. price come overpriced, brand. ion, the which ion prices can't the all a not products the a brand; the $XXX store that of almost

but margins reason to proposition. margin; two? the to It's reinforcing enormous for built-in hit just our to value this in this year improve for think to is it's guidance, the is and So, the is important obviously, value that to an Sally's Question do our guidance marketplace. proposition margin reinforce to not we

Donald T. Grimes

one, from question exclusive our said the we vast on said majority just of and Bill, that brands. you revenue And, is owned

under Canadian brands. Sally's and is within of U.S. just business, to owned from half exclusive Just Sally clarify, revenue U.S. that and

about and point. wanted a and operating ratio, are and ratings strong ABL XX% basis aggressive the XXXX So talked level ratio meet for of up XX-month that $XX flow, We're more target To drawn with clarify comfortable driven fiscal on fact on to cash we our with X.Xx year-end under cash we rating and our our regarding had which full leverage the given flow. our our the by QX fund just free in at trailing leverage We million leverage with agencies. that comfortable in free regularly the ratings that the part with year, just fiscal to your buybacks QX was that is now. second We're finished stock to particular. question where

I comfortable as think with agencies were well. that the rating

William Michael Reuter

up? Would you go to want leverage

Donald T. Grimes

necessarily. Not

think of to comfortable in X.Xx. we're range I the X.Xx

make stock that restricts know, our there's indentures – – limits or kind you buybacks. our payments notes of a a times including trigger As to have ability ability restricted our at X.XX

And below would so, stay likely we Xx. below at/or likely X.XXx and

William Michael Reuter

Thank helpful. Very you.

Christian A. Brickman

you. Thank

Operator

Thank you.

the next from Casella Our with comes question JPMorgan. Carla line of

open. is line Your

Carla Casella

us your Hi. Apologize could but was CapEx the give if missed this, I year? you for

Donald T. Grimes

$XX $XX million. change; just million under and so

Carla Casella

sorry. No. Great. if I'm could outlook you Okay. give And the for –

Donald T. Grimes

guiding We're $XXX million, Yeah. Carla. approximately

Carla Casella

Yeah.

I Sorry. that. have

So, question decline, think sales, much was growth stores? decline the – mean, you on strong of and my Ulta your looking at Ulta; other there. – your cross-shopping or if not, think I same-store same-store customers do I'm the How are ex-hurricane your shop you your where sales do crossed customers mostly the

Christian A. Brickman

Well, think... I

Carla Casella

obviously. (XX:XX) Sally side,

Christian A. Brickman

of well right cross-shop the weakness of think shop mass business is well both the And what such Walgreens, extent here as us And some customers. one and in as cross They social media, working specifying is really digital address our Target, marketing now. we're digital well CVS, e-commerce strong in as to the both. things we're channels It's the to mass – as as hurts Ulta. as there. as I it's and truth Wal-Mart, the media a lack past, that's they

Carla Casella

you. Okay, Thank great.

Christian A. Brickman

you. Thank

Operator

you. Thank

Siegel line from Simeon comes Nomura of the next Instinet. Our question with

open. is line Your

Simeon Avram Siegel

retail fewer guys. can Hey, what just, professional, I comfort mean, if then, gross some morning. levers around Thanks. margin mix at your can Chris, tied you persist the remain to under by could loyalty the Thanks. And on elaborate talk there? Don, retail Maybe guide? referenced. you it you Sally, what shift drivers is between that expect that the Is blend; pull to do control you about to pressured? there talk mix you and customer professional your are greater or and sales Good the driven and sales,

Christian A. Brickman

question. Simeon. Good Hey,

our customer the I'm Sally, customer but at think that at the I declining. pro so than more BSG customer is, is about talking overall It's sales the pro Sally, been at rapid at pro Sally. reality not same-store has been

So, it's a drag. been

we that the off eye our is there. that ball of Some took

recoup better of it's we now right we still they've time get to which, they sales of better those we be base. margin selling where of it but do that think can bit served represents think I how has the benefit, channels. customer But now. loyalty, drag some pricing some over it our with and service and better the view customer through dropped Sally's to about we at of been customers. we're business, better of positive this It is a a them with their drag some do inclusion of alternative as XX% But as ball initiatives working may of well be do, some about a this is, overall addressed overall and will think we and have just with course, right a customer;

Donald T. Grimes

the expansion fiscal we initiatives it I Sally to today. XX with pricing we were drivers have Regarding in that XXXX. gone feel margin gross of carryover that basis which of fiscal a guidance public segment have points margin, wouldn't mean, are obviously, gross comfortable the or will The with the throughout XXXX of benefits taken

BSG really took we from initiatives in year kind As those be fiscal a There'll of its pricing initiatives full late benefit noted, pricing in XXXX. QX.

And as U.S. we gross the customers related negative the margin. some SKUs partially negative shift, the perform U.S. the mix to business it by a lower which pricing then segment discussed, offset the as segment better gross only of – positive Sally on is has which segment Within within margin, expect so and Sally has the and those itself, segment mix BSG just there's that. expect a continuing Sally the Chris adjustments than retail U.S. mix business a a for Sally the customer between are professional to we

So, achievable. the these when is believe that you all today that went you we bucket, into the put guidance get with forward and we

Simeon Avram Siegel

any McCall, And viewing sales? get about recapture still Armstrong can this those through how declines then and expect just then consultant Thanks. you the business on thoughts at rate from Should the BSG just you you're at we point? talk

Christian A. Brickman

time, the across are fragmenting In renters. McCall. Armstrong obviously have the the independent I salons not in just within are consultants to you're listen, are booth We happening and stylists, It's salon U.S. the tied become consultants general, renters over CosmoProf think stylists suite Well, and really that in also marketplace. business. more what's seeing

a very customers happens, and that education social CosmoProf we're and as overall As source in they of because our extent, the trend those terms dependent seeing and, it's media for store community also learning positive become growth education CosmoProf our customers become to presence. on and and of great a of a that

the So, marketplace. I continued slow think a that store see and really towards mirrors business, trend you'll

Simeon Avram Siegel

luck guys. holiday. lot Best a Thanks Great. for of

Christian A. Brickman

You bet. you. Thank

Operator

you. Thank

question Our comes Wissink Jefferies. next with Steph from of the line

open. is line Your

Stephanie Wissink

Thanks. Good morning, everyone.

financial for two us questions on model. Just the

exercise years last leverage leverage comp those respect an Amazon know with structured business. your seeing secondly, and cost you're well XXXX you. revenues how the that just maybe first, there some the know us And somehow look out if inflation some just expect. paying can the Thank then fee side? the called us last accounting you of us insight model threshold. Could kind couple into actions one inflation; is give Amazon you've the to threshold; or you then respect this for is for you and, but leverage insight to I'm give over working of the on and a where work? And over it corporately partnership; differently give you to with revenue can also mentioned update us booking complete as year. looks comp; next lower the imply wage a the need then I wondering The a I revenue to into the Does you, – on Chris, into how to give question flow-through would you the you level what profile incentive wage you shipping talked how the of exercise, just a – your the restructuring you

Donald T. Grimes

accounting the question? Chris giving You're

Christian A. Brickman

ahead. Go

Donald T. Grimes

a revenue On per-transaction we the a record fee. portion latter, then small line and Amazon we the revenue the pay top and of

on that. So, that's the the works accounting way

amortization be Going including deleveraged behind it about this allocation we of SG&A to and depreciation from prepared will in year, talked of – in stores deleverage projects, first the normalized making cited back the plan. XXXX a some new couple We international including system, Plan the point partially But going distributions We in And also system as inventory from offset sales for investments benefits the the guided expense, comp. we're XX.X% e-com, and carryover BSG remarks the SG&A. couple business. newly-announced including and prior and investments restructuring a headwinds Restructuring planning the cited are forward to and new wage centers of level of a and of questions. by drivers your versus the a and POS of only incentive IT those some our things inflation

when comp in leverage of XXXX, fiscal asked what need order deliver sales to comps. or So, same-store than growth you the more would obviously in level you it's flat

on improving of which improving performance to would this I couple for same-store our leverage it as Sally is do conversations basis, forward, same-store flat consistent expense a particularly sales the Everything say, prioritizing team be prioritizing why U.S. last in Sally is on are on capital the we calls. on had laser-focused senior with the sales SG&A performance U.S. comps, laser-focused business. earnings leadership from operating we would we Going in go-forward a challenging is to business.

investments and forward. SG&A we're those fiscal better into we're But And about we of in late the on deleveraging the able line the to so, driver fiscal XXXX comps is going XXXX around Obviously, leverage line forward. believe deliver the will going turned fiscal that on making performance SG&A being drive in talking XXXX. getting

of might associates a have we stores and where inflation; assess best is up, away. service have our our kind the the into The reduce the and employees minimum applies having in have landscape we to employee that level question lure assessment. specific to where the the increase to the to merit that of otherwise kind make wage customer assessed gone come a And The have expect. base. talent and attract in And DCs. we've more inflationary stable more pressures they by an local businesses, to turnover, wages – appropriate to of kind the marketplace it's there stores, overall respond improve Your regarding market-by-market that goal to beyond adjustments of both

going or in our on not I'm number but terms is a XXXX. SG&A that pressure specific percentage so, fiscal increase, And in to cite a of in terms of SG&A, dollars

Stephanie Wissink

helpful. Okay. Thank you. Very

Donald T. Grimes

Thanks, Steph.

Operator

Thank you.

line comes from question of Simeon next Our Stanley. Morgan Gutman the with

line is Your open.

Simeon Ari Gutman

Thanks. Good Chris. questions, have two morning. I

the you participate compares make of We've brands participating some or in First, there? a of the you it's as as much drive side to but you does well side. at part as on since not industry, side? the which the happening. diagnose the think there's heard tough if it products and as what's slowing harder on on prestige on Do if sort promising? been you any it, going horizon What's on could you're some but on remember Chris, it cycling And traffic look new can all, mass that mass

Christian A. Brickman

coming, like stuff take right. first. we've I'll Obviously, feel got second we great one some the Yes.

that. is excited for our very a customer of so lines and about the to And lines. we're much think by see we're chance value color a are hitting So, value-oriented we're better media buy they're color vibrant that stores COL-LAB very which a now, influencers. bringing, apply of to a I team really at terrific which cosmetics offers prestige to who social It's backed some the excited quite easy customers

first be It's one, to influencer in which media we're really has more beyond and see to we're not by don't launching going going following very mass. Arctic social soon And I limited Fox, in distribution. online powerful stores obviously, a then backed The is and specific it think channels.

for which a significantly brands. is of So, us. The My great a larger electrical That seeing category help a to is we've pretty top it's a, to we and care to nails. us core It's line. relatively drive we well. category We've flattening cosmetics and, categories a for innovation purchase both online shift don't online today. that in I one downturn. continue lack see b, in some that as of big where those a a do innovation easy for in guess seen categories comparable call out tailwind are, seeing declines some is participate some small color that is been businesses. got should of it's I'm our Obviously, has appliances. We're would and of category not coming a search

of I a as business result seeing some think diminishment that. of that so result that, And we're a as in

business. So, now. seeing certainly promotional than decline. looks But the those a not our core decline are very as our We're other strong. overall categories We're in seeing strong. there in (XX:XX:XX) our noted the not we're I a earlier, trends. business, which Overall, distribution the very fixing big pro that category are category And

Operator

Thank you.

line go from of Boruchow comes ahead. question next Ike Fargo. Please with Wells Our

Lauren Frasch

Ike. for Thanks morning. Lauren my This question. is Good on for taking Frasch

weighted the they like there's year. in or we SG&A the the How cadence of expenses it Thank Sounds about next of steady earlier should year? a throughout lot more more throughout these upcoming you. think year; are is

Donald T. Grimes

terms but out the question inflation we've to It the components. response the restructuring wage would kind in benefits headwind, the I course rata of addressed earlier the mean, pro Linda's in of on over I in the be call, that called the year. of depends

incremental systems investment more the developments related back-end of And to new more be weighted. investments e-com to be related Some rata. the (XX:XX:XX) would business-related would pro

be a And but towards the weighted some more on and QX, be a bit QX board, expect. level the giving qualitative percentages of guidance specific it components kind little but at quarter could you of what not across rata. pro would some it's of So, will and we're more by SG&A that's

Lauren Frasch

Thank you. Great.

Operator

for you And to back you. turn speakers, with any it over like closing Thank I'd to that, comments.

Christian A. Brickman

just of joining we're us some making to I'd investments again, strategically today. we're about change Overall, for excited Well, thank like the say the business. to you

model, growth should stock joining We consistent Thank of sales significant investments again in e-commerce. with driving the deliver of allow for practice initiatives repurchases business flow via of to will us shareholders both combined returning us per our cash our portions focused in improving to earnings our share marketing and on to continue you beyond. such stay today. growth our and significant effectiveness as accelerating and efficiencies free These initiatives, XXXX in

Operator

ladies for that Executive does today. And, you. and Thank conference using call gentlemen, our participation and conclude for Service. your TeleConference you Thank AT&T for

You may disconnect. now

Sally Beauty (SBH) 15 Nov 172017 Q4 Earnings call transcript