Earnings call transcript Q1 2023

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Operator

Good morning, ladies and gentlemen, and welcome to the Sally Beauty Holdings conference call to discuss the company's fiscal 2023 first quarter results. [Operator Instructions].

Now I would like to turn the call over to Jeff Harkins, Vice President of Investor Relations and Treasurer for Sally Beauty Holdings.

Jeff Harkins

Thank you. Good morning, everyone, and thank you for joining us. call and Denise Officer. Marlo the Chief President on Officer; Executive Cormier, me today Paulonis, are and With Chief Financial

we Actual may of these a in with as discussed call recent the like forward-looking those remarks would our including no Private indicated section Securities XX-K filings most the begin, views of by report Factors other everyone Act statements factors, undertake the differ we Before management's the obligation Form on of only result important materially and Reform represent our that those XXXX. this meaning to of annual update Risk as on to may Any forward-looking of today, forward-looking contain made remind and on call statements Litigation SEC. them. various statements results within this I from

and provided and its press has website. detailed non-GAAP a measures company release in financial items The of earnings its explanation its adjusting on and reconciliations

turn to to like remarks. Denise I'd formal the the Now begin to over call

Denise Paulonis

morning, our drive and profitability. customers start XXXX solid fiscal off Thank remained is initiatives you, strategic progress that pleased and a everyone. our excellent on on made We're serving to and teams focused long-term our growth new to as Jeff, good

gross First we Adjusted $XX of and last margin sales in free million, remained year Adjusted quarter net at was X-year at positive versus $XXX basis. sales strong Comparable increased cash and a million. X% came $XXX million. stack X% EBITDA generated on flow XX%.

both fairly BSG average to inflationary pressures. seen driven quarter strong Sally our and in prior trends among first persistent ticket compared year. the as by against transactions slightly unit were in backdrop delivered both average the At recent we quarters. business behavior and we've consistent while retail, of increased, stylists Sally customers resilient performance remains the down primarily Our with BSG, remain Purchasing the

customers BSG as our enabling gross responded note, Of vendors, Sally was the this up us to activity activity our in increased from both our messaging. maintain was modestly support at promotional strong quarter to and Promotional value by profile. margin funded

a center positions of we During which and forward. maximize implemented the and the us network are strengthens our quarter. Oregon transferred store to large closures look planned our plan, been to our were supply we of Early and next Inventory with line our and consolidation store sharing portfolio with disruption. facilities, majority minimal recapture update the store chain and value quarter, DCs successfully trending larger expectations, optimization completed our broader reads our from Pennsylvania on XXX going in has to forward successfully distribution sales

In-Store. the Pickup our XX% our we our first of comprises the earnings / e-commerce shared years. sales, initiatives delivery convenient that call outlined last of driven X.X% and and November, On the X-hour Buy Sally quarter, we'll the vision three and strategic increased coming advancing in for Online by fulfillment Beauty be sales strength future including the Holdings in the total options, of new In

high-margin growing owned at efficiency amplifying and and the capabilities. reminder, a innovation brands our increasing enhancing centricity, operations Beauty these customer optimizing include: Sally As our and of

across Let these. you of our me each on update progress

centricity. First, customer enhancing our

initiatives. through and care we're as as color our professional loyal organization, product on well acquiring programs, customers an focused our differentiated As and customers new marketing offerings and our strategic

whenever us. they with to an unparalleled experience engage provide however customers is and goal our Our with

credit And our Sally have sales rewards in loyalty We card at of sales XX Canada, comprised members active and X% XX% of BSG at quarter. QX. representing for million our the U.S.

drive BSG building the customers in all-time who XXs. increased XXs understand we're are, strength needs, lifetime with and highs, engagement Additionally, low at our and Promoter their our we to We to and continued at Scores high Net the value. remain Sally on know this

the created them response help engage storefront positive onboard their as our BSG, get and stylists, digital we to value-added new of and with At to community with initial empower our as platform with build to their marketing and with partnership a more traction create means seeing. tools meeting to for was them profitable strategic is provide SalonHQ pleased stylist we're we're customers. launch This the them with businesses,

advice inspiration, of to business. now are Sally, Turning where education tenets the and key

core our competency associates in Our take consultants expanding upon serving certified studio we're our piloting pride in color Sally by and experts our virtual customers and by and tremendous color increasing stores. store, this

our of color conducted bringing journey are virtual Our color professional success on-site and calls Sally up customers and of level the color set advice live video our higher step hair professional for elevates they in through further leader hair across in touch as experts stores, their care. and this every accessible are ensures

successful a in stores quarter XX of XX another added for brought in total Following XXXX and pilot, this XX at to we locations fiscal a end. QX

on-demand service those and half the beginning this piloting appointments fiscal website, offering Sally our Next, second on scheduled consultation XXXX. in of we'll be

to plan Turning Dallas an new pilot to Sally studio stores six additional during to our in fiscal on open We're first launch second year. stores. the this track by studio our location concept quarter and

and include training reminder, to how their DIY-centric desired receive a As stores salon these where on customers results. will a will achieve education

year first progress to XXX opportunity will advantages empower Sally to customers to the engage, educate the and over allow you our concept X next to believe leverage grow We years and locations look and to us digital a throughout utilizing competitive there's U.S. this by omnichannel focus. on X keeping our one. to forward Studio in infrastructure our an updated

brand our in Sally owned good the Sally. and demonstrated in We're high-margin BSG. to forefront of innovation in our innovation towards owned our to strategic have and product our goal amplifying staying brands high-margin Sally growing and at Moving progress grow penetration on second initiative,

SKUs Also performance the of launched In Wunderbar, was the the rollout line products during be color our by all brand, points the we and quarter, Europe. of to initial pro-quality hair strong the with bonding QX. price our first at bondbar, expect quarter new in of of care completed end XP-XXX accessible and fully brands notable

of Sally overall up Owned brand in over X to sales first from we reset. penetration year-end, we X sales store the key XX% at sales also XX% can years, believe the penetration while growing XX% low to for quarter, next our sales units reached bringing to and digits. of to segment that grow the through categories mid-single We're

Sally For example, customer both we're response nail at seeing BSG. our to positive reset and

the Additionally, a CosmoProf month. broad-based textured off of kick with recent new five that supported campaign our brands hair this by we're stores will leaning introduction in into space marketing

initiative, capabilities. way This focus, and our encompasses optimizing and now the strategic and our Turning efficiencies areas our of third three operations increasing enhanced to of work. base, our by including consolidating the we efficiency chain store rethinking capturing supply our optimizing leveraging

I As largely the product successful have facilities. locations. have transfer larger earlier the I'm our accepted affected workforce positions other and a in the of DC our in completed the store and pleased call, disruption our that minimal stores in to of outlined to optimization portion note also with teams plan significant

Additionally, fiscal complete, sales the is volume our track integration double of on expanded Regis in to are and XXXX. partnership our we

profitability how increase steward positioned we're through under advancing we way focus the initiative initiatives. work Fuel the as maximize and term. value continues ways efficiently strategic and We our we're be shareholder the seek underway to Lastly, more over on the business to new Growth good the as about business long we to for our feel

talented colorful, who and about across We passionate more are have incredibly customers associates delighting and welcoming inspiring the world. organization our a confident

a our us capabilities runway significant are confident in concert and growth infrastructure in provide years. with We that core strategies the coming our new for

generate to Over net single-digit is the sales and to long operating term, we believe positioned margin. gross over low low margins the growth, business double-digit XX% new

to I'll to Now call financials. turn the the Marlo over cover

Marlo Cormier

We're Denise, initiatives. footing, quarter delivering and progress our line XXXX good everyone. morning, consistent first with to our pleased begin fiscal on against and strategic making Thank results expectations in you, strong

X.X%, combination stores quarter sales of impact. of of reflecting fewer declined First $XXX basis currency XXX unfavorable points the million XXX foreign and net

Comparable stack. up X% X-year ago a a year on and sales X% up were versus

currency to Increased of in and digital leverage We Beauty net business. on global adjusted to sales continue by basis a margin to strong our brand XX X.X% XX% representing XX.X%, We see maintained higher increasing million came expanded total channel which margins, with last and due a owned BSG stores mix down shift performance $XX gross penetration constant at e-commerce strong Regis offset points Sally basis lower pricing year. at margin by for at and driven was product sales. between

year $XXX and ago Turning an labor now and a expenses. reflects Adjusted $X to million SG&A higher personnel operating versus of costs. increase totaled million,

partial offset fiscal $XX achieve costs expected at and are last store increasing we DC anticipated as from the savings to pressure on approximately the under move optimization of Total plan. through expected savings full Looking XXXX. is track a consolidation our we announced as year, serve million we quarter to labor to expense

reflecting We our expect the quarter, to second quarter and SG&A the first efforts. for levels timing our the similar optimization from of wage benefits remain investments to

of combination our enabled also initiatives, on delivering the cost our and invest to us line. gross prudent bottom while healthy The control margins new strategic in

First margin XX%. and quarter adjusted $X.XX. operating was share diluted per earnings XX.X% EBITDA at came was margin Adjusted adjusted in

Looking at segment results.

a Beauty X-year Sally X% up First X% on increased comparable sales stack. were and quarter at

or sales At Let segment fewer year sales segment of X.X% versus the to the X.X%, reflects unfavorable net increased currency for stores that XXX $XX driven operation foreign XXX declined in we ago. of primarily basis quarter. million had points and XX% currency, by fact impact sales e-commerce a constant

while care and the Sally categories. by Canada, For X%, store XX% the was up global was X% comprised up gray color of closures. X%, XX% Sally impact including U.S. the declined coverage color and from segment, color At increased and

Gross expanded solid to by margins, and margin penetration. XX.X%, primarily higher operating product leverage XX increased Segment and brand to owned margin basis reflecting at XX%. driven pricing Sally points

reopening. constant X-year BSG basis, Net was who year's to currency quarter. sales or XX salons XX% their sales lapping the X.X%, a were segment comps million up a declined reflects a X%. unfavorable segment. which from last segment and BSG year foreign versus sales as X.X% points for XX demand fewer Moving ago. to the during On e-commerce sales BSG basis On strong were the basis, net stylists, of impact declined restocking $XX Comparable stack of increased XX.X% currency stores

The our closer need. to down colored purchasing and stylists as care BSG X% continue was at category X% declined

basis by Adjusted and BSG due margins came quarter, the to points XXX strong to the sales between momentum margin with -- segment gross to partnership. products. mix primarily continue stores at decreased margin product XX.X%, product XX.X%. channel lower did expanded express Regis at the driven operating shift During Segment we coloring see in

ended Moving to quarter asset-based and $XX equivalents the of flow. revolving cash under cash outstanding credit. and $XX and with sheet cash our the million We of balance million line

some notwithstanding X.Xx. $XX in choppiness with ratio to chain experienced million as have free cash at $XXX Inventories year XXXX generated down were the Our mostly leverage stood first we continued ago. supply inventories We normalize disruptions Quarter-end of net million, in subsided, flow receipts quarter. in SKUs. inventory X.X% a debt certain strong have the from

For to $XXX to the with the full year, our we million, financial $XXX strategic expect generation to in free cash to in us return flow drive million initiatives the growth. flexibility invest to range new providing of continue long-term to

guidance. now Turning to

change transfer expectations We full and are year from follows: sales, strategic some expanded notable our new our digits increase closures, in behavior in distribution consumer to Regis are growth driven expected categories, our comparable by the sales prior as initiatives. low single compared to year, reiterating store notwithstanding by a

headwinds. XXX This reflects sales fiscal to XXX store low end impact our as well be and year. a X% plan expected anticipated of the of digits the of FX the recapture to points At XXXX expected approximately efforts XXXX, store of decline small of net is from store basis end are to single new unfavorable of openings. our basis points closures, of by X% to number expected sales compared Net to count impact optimization approximately compared down due to optimization from prior XXX store as to

expected earnings above expected the distribution This expected labor, of benefit is consolidation related range partially in margin to of remain and million be $XX Gross and X.X%. our adjusted increased X.X% to plan. to XX% an is investments operating by to in offset to store reflects optimization center operating margin approximately store

ramping lightest sales cadence a our perspective, as wages will historically And begin keep mind up quarter. From that we this I outlined investment second in earlier, in the that quarter. further anticipate quarter is

decline As first to quarter. to expected quarter the a sequentially margin operating from result, is second the adjusted

drive to to optimize we Looking and build beyond. our remain model, growth our further ahead, confident scale operating initiatives in that will double-digit us margin fiscal enable top to line operating and XXXX further return

this appreciate We morning. time your

operator open Q&A. the for ask call Now I'll the to

Operator

our for question. please And Oliver first One Company. Instructions]. with Cowen to we'll Chen [Operator moment go first and

Oliver Chen

would the Is Marlo, impacting out love color and market, relative your in restocking. behavior? thinks on as to a customer the I and Denise, Denise trends that everybody you're And thoughts bit still inflation. there seeing what about regarding traffic

second lifetime value The I is on had and question customer engagement.

opportunities on hanging optimization, lower looking elaborate as you You your expectations? the recapture what the store rates Marlo, there And in how fruit. as loyalty your then been mentioned progress to well see have Would of relative love as program. on terms to you store

Denise Paulonis

Good morning, Oliver. well. hope you're I

Let me to those beginning optimization. of with store questions, Marlo I'll on throw start over to then the help and it

And think similar first I are colors, Sally. in copper Sally, color, both in a interestingly, great coverage around colors. seeing X% of we're in folks around U.S. some were BSG the all, in XX% gray trends of and trends in up great in healthy reading things So both to news, businesses more very and Sally our overall In we brunette

be of earlier right So with people buy us, they a in some that which nicely might people efficiency little and where versus we the shopping back trending we that coming on and brands. save frequency, be, bonding resonating and thrilled seeing we've now, customers, frequency seen promotion more an darker particular in and on have people But the our what going year, for of not did And offering could to colored. have expensive. XX% see our have saw always we with the last but be X which consistent

helping their pantry keep that's and that, them loaded thinking really stock. we're pantry So

chain color restocking bear, end are this of BSG the heavily us. were to side, note still But think we COVID very so is really healthy as and I year, the the supply remember, On QX last to last for coming stylists important restrictions seeing time the were disruptions. year,

customers when it they bought could what So was available.

color working what the is year, in need. they closer we're business. this have seeing remains that buy think to They I But to been inventory. through continue healthy

broadly on inflation front and the More behavior. customer

and the We color in think Like out trend. same hair. we've is the haven't when basket But for coming in customers seen our change both meaningful said, people a bit that newness. little a items extra category reset. level in I going little darker about But conservatism we pleased stylists our can the a trend in of we're that change said, their more in. remains in for our bring I seen some nail But with

able to that are about a get more than quarters customers few category, maybe ago. We bit thinking little they were a

we the On very customers. the that capture of all share customer lifetime we're of wallet realistic value, our don't

of go And so focus education our customer-centricity convenience you'll the things on to of our to are around initiatives. focused as we more and with loyalty that customers. things our are expertise, focus and with pushing X-hour continue drive really BOPIS on us of program with our our forward, delivery share wallet inclusive on see that do we're And

on value more making get that of a it you to our reason to much advice more expertise and to stores virtual studio that Sally and need. focusing come our education, expert your So color

And about how about store with Marlo, optimization. you, talk that,

Marlo Cormier

a our Thanks, just of good Denise. a optimization, studying part year our store of Yes, really closure reminder, piloting model. spent we in and terms as the

And as so went customer analyze monitored confident this we into rates, we we are recapture as closure plan. behavior, pretty

of part December. did do the our we significant in early so closures And

with are so very it that pleased So with it's those disruption delivering good at far. But execution That we really a the so It's everything and is but was the smooth and consistent what pleased are plan, early we early tracking. we of initial expected with recapturing to far, limited we According days, results days. planned. program. rates

Oliver Chen

hearing all innovation. Great Best regards. the about

Operator

line we Tong And can the James. to Raymond of go Olivia with next,

Olivia Tong

First, wanted long-term ask to your you I on outlook. growth

of sales, you you single-digit with If of comp after mid-single-digit and could particularly what timing remind to from sort that, around -- term? of close you the the that, us little gets cadence particularly about longer low to and to part the bit parcel where store store talk need and year go think closures you a closures. you just some for Could timing to

Denise Paulonis

Sure.

there. start me Let

closures about year, are this think store for we the they largely when complete. So

As XXX plan in the completed majority late were Marlo those vast of indicated, the December. closure and were stores in

us, customers the that recapture behind our seeing most for we're part, moving is, that the rate we're excited forward about there. and So with and

path working it the into When broken we to see we're how think talk we on initiatives, algorithm, about we're about the what and with as years and build bit to and a broader our newer little me our evolving. long-term it out going let

So been and name of nail Ion, well. category, launch, those, includes when and to growth newest our our a our care own which driving our focused Leopard, category on about we're rebuilding just talking as Strawberry brands, growing bondbar, XXXX, few we've there

were last onboarded wrap a to is we last fully us as business, opportunity where to Doubling And we we our year. have as well that business up opportunity Regis additional chain to from as see very this we point. have as learning double take business with at It the excited pick the customers. around there year,

with DC improve to operating profit performance. going Finally, and store consolidation organization that's complete, the our

As later virtual in XXXX, SalonHQ the experience. pilot move our the of in impact. talked year expect one And terms of region in stylist is with in those, color we to and into platform we've right late ramp stylist to our start platform expert Both we about only now today.

response we're on, but our that and by to continuing out. So stylist grow encouraged early

the the process we includes anticipate be the color virtual number in own acceleration That U.S. then on the When It will look of brands. and a our and in you tailwinds includes expanding which stylist e-commerce we of hope into XXXX, fronts. do channel expert. from platform,

this later store Dallas to in format, that initiative, Studio we're the area that we're -- going including really impact that's QX. And in new to on here by year term. get to Sally updated us that track excited but about Our longer a

to the year. expect pilot it's to XXXX. support be be we would So hope if a looking that year later next positive, into XXXX into expand and that in this And we'd

them. of back well respond customer So to we're hopefully, through centricity, you really pleased as and on. both need. comes shape side working own BSG scores a to what to continue our kind And we're to want the high this journey us what on reward on NPS customers gives as It all brands they as that driving the and business innovation Sally with of are with we that

Olivia Tong

brands of around you expect talk your my the you kind as do you sit here? And new for like where term? mentioned. where stands second helpful about brands term, contribution But longer own longer of you think right well the mean, now? question And very now, is think bondbar, penetration own of to goes own ones That's actually, about it further like your it can from where go brands, you I

Denise Paulonis

Absolutely.

bondbar. think the We're from of growth introduced of segment. about targeting about Sally for roll will continue steady owned it path segment quarter, That's XX% to then and years get year last nice getting of the We specifically up or through Sally Leopard represented XX% there. the become a just there quarter. business. in that recently the to brands Strawberry to five This last but number take about we X% four out as

to good fully reaction, the holidays. rest they four through out performance the we'll were market had of roll SKUs good to come market. had in those out of first customer bondbar the line. We But quarter, only starting the This as

years build in we're excited continue the as and owned strength brands rest come to QX. online coming And we'll that European SKUs see of to our to the as future in fruition those businesses. that well of around in So with

us be of source come. for for to time So that the will a growth

business of tailwind our drive margin. penetration as our owned vendors for owned curve really that with with as our is continue focus to a innovation in owned that importantly, between we gross time brands that stores. nice segment, continued a innovation in well. a our brands and pro-vendor their up we we number to customers brands, think And product space drive and partners, excited growth We we over the and into a with it's pipeline And into coming a there's the can also have brands to of nice complement are more about on while that BSG our great move see continuing complement our in growing Sally the external

Operator

to Gutman Simeon Morgan And next, with we can Stanley. go

Simeon Gutman

Two on parts SBS.

land. store think, I then U.S. It done. the it versus of that closures similar like get by much And wanted where is now. comp how And rate comp, product in you and you then been was you that Denise, talk of mentioned but where largely it you store then eventually is to can the could store maybe count drivers I the to where sounds about terms have closures? helped price? said initiative in quantify could of recapture the line, some will

Denise Paulonis

Sure.

through this order. me work Let in

So in done. the largely closures are SBS,

in pretty notably U.S., stores is to as as Marlo leaves right that place finish inclusive X,XXX Sally quarter at down year So year, down that We the SBS, an a vast about QX. we'll ago, entity, BSG as this plan, X% of said, XXX think to the I this at X%. to X,XXX. Those completed the the be. about are and from about X,XXX. mentioned, was And majority it's in of end broadly store count our

the came such stores the the that transfer which of very positive test closed. in a we to set the that to stores we I all X-Wall store reaction this And I'd optimization were opportunity go think with the incremental strength reemphasize of is, sales the in really were pleased capture and positive. and that us into after piece ability stores The e-commerce. enabled we EBITDA did, of from

targeting our in So rate. we're recapture XX% plan, a

are closures to and to to now. we able guys. beyond out updates have X to more as trending get we be we'll weeks those X we're numbers some about As We're good Marlo mentioned, feeling where you report well, of

to place But good a overall, be.

now, spot in. there this if We think opportunity. we're will right and be is continue store -- the watch to any that to and would incremental see right we be But understand recapture the

contribution comp in it to quarter, When in we about that late the we -- actually December was closed the you stores. think

the have been count meaningful -- in a meaningful would quarter, would not So contribution. been a first not have

Simeon Gutman

it. Got

BSG. on the but business? back don't or Can should follow-up And think changes could I comp that impact year. competitive to flip positive don't of a guide Promotionality, -- you any negatively Is segment, you for talk landscape. One by then the Okay. brand I that fair assumption? about positively business remainder the the your know

Denise Paulonis

Yes.

business So of small comping business and for comp really really about the in reverse is the expect having BSG as this number order, the I the were trend remainder take, we would a But here we positive competitive was the a Give strong nation yes, or this quarter year. in think When a business. comps intensity, of negative about certain we year a lap competitive events reopening. some is there. salons mean, last

lean some as for to willing that promotions we that funded that seen from every We of or what understand to this bit businesses, support move more materially, dollar quarter. vendors fight We the can vendors conservative, our appreciated that change? went more we through continue sales stylists try point And strengthen materially a into spot to to being and Have right? we we did the not watch see at with everyone might get. their they fully

we're out overall, So there.

of our another the with key vendors. or year, great through forward coming feel relationships in through way growing have just we All the that rest our new them one the look have year. that And innovation brands work of with business about to we sense our as the

Operator

[Operator Instructions].

Next, to we'll Helgans go Ashley Jefferies. with

Unidentified Analyst

Ashley. for on Blake It's

products the starting this innovation, mentioned brands, campaigns to to or you continued sounds like well products do any if innovation? focusing inflation for there of new a then On were own trends launching continue? impact it trade-down What month. you now of And shift from marketing lot you impact expect right some type with as are

Denise Paulonis

Yes.

all, the So brands many first are store. not the in value on interestingly, our of brands, actually brand of own own

of with It's could is value and our bondbar, efficacy they priced the we a space true offerings great differentiator out many true to product. compared price with brands price a midpoint point there. that launched is really That's in that and So other The store the compared have a available our what point own offering color bonding of our be Ion Leopard at products. the Strawberry is with which newly at are vivid to else

do level when to them owned think call right for owned focus of on we products. reason brands cost high-end about really we be quality balance but that to consumer, and value So our because great pretty getting a of we brands, the

That's on general, looking In consumers additional seen promotions not they're our life. lean Absolutely. more are Sally little Simeon, mentioned that customers promotional supported to in to bit get for can up something value? but had a I we aggregate, value and have certainly vendors meaningfully comes some advantage as looking is In we that where certainly our taking BSG to of sources of that business, for activity. true the side well. when

Unidentified Analyst

on where to like of year. optimization, super you a just benefit chain then million $XX to million there That's be that million timing a operating you're time? that this and supply sounds about helpful. $XX And talked you've going reinvesting $XX that about it income the saving I was should -- $XX we you benefit should is -- or rest that over grow if wondering savings the think million the

Denise Paulonis

Yes. to that? you economics around Marlo, want explain the do

Marlo Cormier

little bit. a Yes,

our So as consolidation which program, store as both DC well closures. includes the that's our optimization

bulk And done so of the QX. towards end of the that was work

get wrap from year-over-year you So a perspective, of around. bit little a do

savings $XX million improvement the on to that and in what operating million $XX translates a we described of So SG&A, earnings line. was

bit with a wrap get a lift annualized bit around that when little we of basis of little So it of you next an look on at year.

that, that from in cost at been us help of the seen. that what offsetting is of offset coming labor. of of to it terms much In most looking is have those And program we've pressures terms designed

also our at of this which wages, in our goes what the also year. year is investment into effect happening increased so And is beginning the calendar

are close progress we the offset see each times as fairly that you other do there through so So year. to that

conscious invest a made It's have to important. in decision We labor. our

our of part differentiator. They important our element an driving growth very of a important are associates Our initiatives. are

will investment as So that's have up we a quarter that this to very as important well make, and in QX. we believe step current

just is of $XX $XX getting this call to between the from is would about the on I difference And -- loss. really million sales year our important add million we've part talked the that that

believe to the reflects every So there stores. sales the the while of we XX% closed love sales, recapture recapture fact between from of dollar difference the we'd that we'll

really So $XX million we're the differential the to from the getting that's million. $XX

Operator

Carla to And Next, can Casella go JPMorgan. we with

Unidentified Analyst

This is Mike on for Carla.

think thought addressing have you Just loan about maturity. XXXX guys wanted to ask, the term about how you

Denise Paulonis

you want talk to Marlo, that? Yes. about

Marlo Cormier

Sure. Yes.

opportunities. reported continuing the we've past, we're to So for refinancing monitor opportunistic market in the

We are us flexibility generator, continue strong cash and markets. to to those watch the a that flow gives

do So we're that. continuing to

Unidentified Analyst

Great. second And then activity difference in trade-down seeing you're side Sally from us. BSG terms kind on of one the Any is or this the side? of a

Denise Paulonis

not Yes, down. materially in different terms of trade

BSG about you when are think think I to stickier people side, their the brands.

getting to and they're when just are value what they color opportunities more So know on loyal But particularly focused they value themselves. pretty the much part, use. present what most stylists for in

the the side So the on just a Sally side, extra becomes pretty of that's the on been not it frugality adding steady. more basket. items to And little bit

styling hair to the to of remained continuing are then inflation in that take purchasing themselves more up definitely higher It's want items to became -- those So conservative tick years those. strong. like few as color of have that their quite sales items became people started tools last as ticket higher more inclusive of -- been and their natural strong part care mid the over they around maintain. actually last people ticket incremental had that choice year, And

seeing more than I'd down of point adds price have basket point. it's to So trade this rather down people in necessarily terms much gone say the of

Operator

further questions And queue. currently, in no

Denise Paulonis

for you Great. this thank joining all Well, morning.

very excited come start fiscal years and pleased deliver future We value. have drive are to strategy our to of with that the those and and new year year this shareholder the we long-term front of us, in in about

happy drive business thank successful care of taking I always I a business. point, do, around our for globe helping serving As a us our customers, each as a the final of and other to like would all and really associates

and to again hopefully, soon. great everybody a forward you has So we look to day, talking

Operator

ladies X:XX February at available And and replay this through running will you. be midnight. and for a gentlemen, morning after this Thank conference XX

again, access can International may by dial and XXXX-XXX-XXXX access Those entering numbers XXX-XXXX. replay any system time XXX-XXX-XXXX. the XXXX-XXX-XXXX. at AT&T parties dialing code You the

XXX-XXX-XXXX For conclude the international and our code participation does Thanks Teleconference. today. access call your parties, That XXX-XXXX. for with for using for AT&T

may You disconnect. now

Sally Beauty (SBH) 2 Feb 232023 Q1 Earnings call transcript