Earnings call transcript Q2 2023

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Operator

Good morning, everyone, and welcome to the Sally Beauty Holdings conference call to discuss the company’s fiscal 2023 second quarter results. All participants have been placed in a listen-only mode. After management’s prepared remarks, there will be in-state.

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. thank joining and everyone, morning, you us. for Good

today Paulonis, Marlo President me Chief on Chief Denise call the and With and are Executive Officer. Financial Cormier, Officer;

management’s like Before I the of meaning Securities contain to XXXX. remarks Private within on the Reform remind forward-looking we statements this would everyone Litigation begin, of may call that Act

the and of important Actual as a statements most made on items and of by financial and these factors, those report update today, XX-K results obligation website. including forward-looking on may section its measures this Any of non-GAAP to press earnings in differ with and its materially from represent explanation statements call them. on Risk The discussed annual recent other only in provided release of our the indicated reconciliations as various undertake Factors forward-looking has those Form and no result views SEC. filings adjusting we company its our detailed a

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

Denise Paulonis

Thank morning, everyone. good you, Jeff, and

X% consolidated fiscal net up report comp with X% growth in Sally constant basis. a solid a X.X%. quarter currency division, notable sales $XXX to sales comparable with and sales We’re pleased grew On in to which strength increased another delivered sales million e-commerce QX of our basis, X.X%, year-over-year on

prudent performance control us adjusted enabled and margin cost million. Solid of gross $XXX to deliver EBITDA

mid-single by with up team execution comparable prices digits, units unit environment. and quarter, what strategies and our In average that average single macro were transaction. ticket driven strong to low at working reflect dynamic higher continues by Sally transactions results per retail a The in demonstrate digits flat are be up our the

basis, units comparable digits, by lower the store sales ticket partially transaction. low a coverage XX%. slightly average impact store up and up were The single up see which average closures. X%, of offset respectively, to remained Color and higher unit great driven by total prices, per color categories X% strong at with Sally, transactions BSG down continues retail includes with care side, on the On momentum strong

to in last cosmetics Care X% X%, to in a quarter. and year. on was note, was well some reflecting and need launches performed we made have nails, progress of basis buy BSG. now Of skincare the Sally’s and Turning down on total to Color new closer the inventory. lapping both segments, up product great continuing sales

planning enabled the levels XXXX our investments seen best in and Our supply chain lower technologies. by have in-stock and since on with weeks we allocation hand, are total

a and transactions purchasing Sally April. Taking steady bit hold we customer ticket end with consumer, in some the at softening February broader in compared of continued look March the January as that at and saw QX, to behavior in

and this focused monitoring closely We’re newness around on that trend actions inspire to value our customers and shop.

Additionally, a cost priority. control remains

Holdings year, pleased when with vision Beauty out to particularly results track fiscal consistent the laid financial Halfway the we XXXX priorities last through we’re the for delivering our and we November our future. one. with growth I’ll Today, shared goals be the Sally operating We our a believe we unlocking of potential highlights provide is initiatives our future few the increase efficiency. centricity, of customer execution on strategic on and innovation enhance each fuel as X

Sally which as website on store, X% trusted with media engagement sales. seeing outlets. professional piloting. with We territory we has BSG, digital represented NPS across storefronts high BSG customer serving HX X,XXX first brands our credit card stylist And XX% U.S. now to pride continue the our stylists XX we’re loyalty start rewards and engagement on had customers million sales Let’s for our In active of surpassed we’re for Canada, At our a DIY QX, strong they ourselves resource platform, scores in centricity. at the social and with comprising and with and high of members in award new multiple us quarter. our and at salon

months, ensure closely to to they to with initial resources stylists a they their selling need working the we’re these have is powerful grow businesses. our utilize During tool this

to the which profitable excited for value-added that about We’re our potential our goal build solid and ecosystem platform, empowers a businesses. this to advances services more community operate

now our to business. Sally Turning

continues Our to great expert and response perform program well color virtual with customer feedback.

trend service, and accessories. about by this driven ticket utilize see When XX%, color by customers higher color we average

color scores stores. Additionally, points currently XX expert higher NPS are in XX already Virtual is baseline. strong our than

As out the e-commerce platform half to remain of in second the our initiative, we year. we to on roll track look scale this to the

to on by our Sally concept. new Moving Studio

with track essentially be sally interactive initial formula, updating our the for bringing modernizing our customers. by this and store making we’re and on experiential at in location fiscal first rollout to QX. proven and pilot are opened The concept We our fantastic the of end engaging store we’re looks it to and Studio Sally, market. Dallas more With thrilled retail

and and We DIY competencies by leveraging utilizing digital. are authority do this across core color positioned ideally and our our to care, education

weeks in have positive, fiscal and we initial response this open has X year. slated to been Customer additional the locations

during penetration we years innovation. chain a overcoming on Moving after and vendors to see our strategic few pipeline issues, pro up the focused owned on to At second product starting initiative, which channel. in were the innovation supply pick brand are pandemic-related for BSG,

stylists in products are new vendor marquee care, recently of bringing and Bond Ultimate our from bonding Rx, which including Wella Repair our launched. color and Paul Mitchell including partners, to newness of both X We

launch with approximately new for partnered Vivid with in distribution the and U.S. our half of line of expanded color BSG all we locations. exclusive Jones their Danger our stores to ColorView Additionally,

our highly forefront the example is in and artistic highly an stay the great by new incredibly line. bring edgy a creative ability the of has color and It’s is of considered brand, recently Jones authority has is and a This color Pulp category. market following. to BSG. of more Danger makers to to brought a Riot, to potential intense customer This a strong which at direct-to-consumer the

when Lastly, clean the will fiscal stores. will U.S. of introduced BHG’s third a in vegan majority our in the we which Amica, quarter haircare in carried be brand, biggest fun launch ‘XX be

continuing to second brand vendor In bring our focusing and of textured and from our the we’re year, partners launches half new key both owned newness hair Sally, brands. excited At several hair. color, to innovation customers, across hair the on we’re care vendor categories like about

full brand the segment is sales the Sally at have performing XX% Sally On of customers our was compared the new the launch bond not year. new quarter, bringing quarter, penetration and shopped for the in the bar second we who which side, second in in brand of line owned completed sales to previously. up On well prior

efficiencies our and capabilities. to our now initiative, third Turning capturing optimizing strategic

store Our and the our initial productivity sales this months closures, program growth transfer store quarter. at comp In a enabling following delivering to is profitability while convenient a been us customers. X% was our Sally sales strong our optimization recent omnichannel to and has to improve experience contributor

a we’ve begun to continued increase efficiency macro-driven supply chain From to recede. as perspective, disruptions have

am inventory, half XXXX earlier, the in As pleased mentioned second as note healthy and approaching we stock that are to strong I of level. with the fiscal a result, I

initiative we on about component Growth targets. for of ongoing and deliver future think an the is how profitability Fuel our and our Lastly, remains important

better reduce shipment our testing As DCs productivity healthy maintaining our frequency our stores levels. to and will drive in costs an we in-stock stores new believe while example, transportation labor we are that currently a and both

focused current the on long-term In our we remain expenses. agenda forward growth environment, driving while managing

both authority leveraging customers, close in providing our in and color DIY with our professional We’re experiences them assortment and to to bring to stylist newness and engaging customers staying and care our communities. services

that in coming our competitive value confident and strategies sustainable will and We’re growth our advantages years. for shareholders the drive

turn to financials. discuss Marlo to I’ll the over the call Now

Marlo Cormier

everyone. you, morning, Denise, Thank and good

Our reflect another quarter our second strategic of execution solid quarter progress X initiatives. results and across

comps. on to XXX $XX total sales unfavorable constant net on points a in XX% quarter net XX Comparable stores healthy Sally’s strong e-commerce currency up fewer with remained basis and basis sales foreign delivering global increased representing of of Digital X.X% Second grew with and X% sales growth million impact. positive X.X% to returning sales. million to X% performance a currency BSG $XXX

margin mix margins, pricing in margin and due offset between center channel some by in Increased than was expense lower owned maintained penetration brand which shift strong more from driven product our a by to Beauty Sally higher adjusted as well at into gross and We a stores came at leverage distribution SG&A XX.X%. shift as expanded BSG margin. Regis costs business at gross

versus $XXX previously That’s higher consolidation million. expense. now million with $XX line announced year bonus optimization up and partly plan. to and from offset center reflect our Turning by ago, store costs, a and savings advertising expectations labor, in SG&A accrued Adjusted our distribution totaled operating

conversion retention our wage see form but early bear store. in we’re in improved begin It’s to stronger the of fruit pleased days, investments to and

year we center Additionally, to this as expense achieve expected store on from to million serve track are offset macro-driven our which a $XX of wage will plan, distribution consolidation optimization pressure. partial savings and approximately

quarter occurred We with expect a quarter at quarter quarter. the the the second of million through savings those that $XX across capture each portion fourth to first approximately majority in small the

gross bottom a low performance. Looking Ongoing drove to costs control, forward line be and increased driven primarily expense. strong single expect quarter, SG&A on to basis higher our prior cost combined to dollar by up accrued year, we third performance solid bonus digits the labor the with margin

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

as increase second recapture just the and as of of at at well closed last Looking strong Sally challenges onset X.X% segment particularly to chain comparable quarter a Omicron U.S. the the the year, pressures, stores, supply strong challenging Sally inflationary and from sales under which from reflects comparison included half recently Canada. results. impact Beauty’s contributing increase sales

a sales payment Notably, segment X% of seeing fewer unfavorable to constant Klarna a increased order currency, and that currency basis ago sales for value younger to pay of million, foreign year in customer now, we’re quarter. net the X% stores Sally Segment Sally. and later XXX buy bringing our driving option increased points operations sales average is e-commerce representing XX and impact. higher net $XX despite new versus X.X% At

was expanded There points Global up Gross impact X%, At segment, Sally here. of increased great while store the Sally are X%. care including and closures. care XX.X%. the U.S. driven drivers coverage key Sal to was X%, down at by color color basis by XXX X For margin Canada, X%, increased and

First, product leverage driven pricing penetration. remained and margins by brand higher strong, owned primarily

year came true-up expansion, noncash in fourth we segment write-down basis Strong at margin there operating last sales inventory gross performance store distribution quarter of the plan. and took center margin was of Second, in favorable points which a optimization the related and to the of XX.X%. drove XXX consolidation

stores last year fewer XX our quarter BSG year second the unfavorable that a Net growth a on a points BSG consistent segment currency Moving were challenges increased sales constant and currency sales sales sales was saw of quarter. net in ago XX to trends X% quarter $XX operation or basis, by XX% that We of million comparable segment. to compares to increased Omicron. the e-commerce quarter with impact. basis in XX.X% versus On impacted for disruptive foreign X.X% of chain supply first

category sales basis. X% color The was remained X%, on care at up declined while total and BSG strong a

to to part stores sales to and as closer strong as some the our shift basis gross continue XX%, stylists channel lap the by points was into costs our margin XXX in XX.X%, driven latter expanded Gross particularly and lower primarily response The distribution we mail regions year. our last new decreased As launches last between partnership some from SG&A well to margins product in mix strong, a center shift need at product BSG margin. to up year. category resets from of purchase reflecting due

in X.X%. margin Segment came operating at

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

stood leverage at Our net X.Xx. ratio debt

senior covenants an Most the quarter, by strengthen the in million rate is of due in which has market to has the the basis a X date our matures to notes floating able [X XXXX, were term spread under term million opening aggregate balance a principal further taking the covenant bears February points. maturity agreement, so of extended light, loan the we and notably, refinance mirroring $XXX sheet loan. plus the loan and of month substantially interest a an and amount narrow XXXX. to XXX $XXX equal advantage During our X/X%] new for, Under term at

swaps we with priced of the includes which amortization fixed term amount. new notional million a in on was April swap from an XX quarter, a term quarter a the of into term The the interest rate X-year the agreement to issue of floating of discount and rate of entered of interest payment quarterly loan end mandatory XX, amount original rate second original X.XXX%. XX% of Subsequent the our $XXX loan loan to

inventory. at Looking

end pleased to return overall we’ve progress levels. of improved particularly are stock and capabilities the chain disruptions composition our with supply combination enabled us inventories receding improved as primarily in ago. The We pricing, timing and substantial reflects Quarter to above million position. billion $X made X% across $XXX a the year healthy levels have and in That’s up receipts. came of in-stock well versus slightly higher vendor as a

below inventory to $X our expect just billion. We this finish year

Second $XX expenditures totaled was million $XX flow operations quarter from capital cash and million.

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

with Turning cadence. I’ll now start comments guidance. on some to

we’re expect of that quarter, would our the Given performance challenging the macro the be we conditions comp year. second lapping this highest in

related fiscal Looking quarter second low Comparable to to our our year digits are in growth year, closures half sales third to Regents digits strategic by expect and the track at full sales driven initiatives. to be single and we the key categories, distribution from in as transfer efforts, low single achieve expected increase on follows. new by optimization comparable sales expanded to of our compared store prior XXXX, guidance store remain the

store end exchange impact the of to number our store expected optimization year, unfavorable due single fiscal of XXXX, from low fiscal X% foreign sales expected count of store plan and to unfavorable small closures are anticipated company’s rates of headwinds. of the At expected a the XXXX be to the new optimization store compared to to net end the down openings. the from Net store is to X% recapture by efforts, digits prior compared reflecting sales impact decline and

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

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

Operator

you. of Cowen. moment, for Instructions] from Oliver Chen first That with PD the Thank line our [Operator question. One please, will come

Oliver Chen

seeing terms inflation, it performance? that’s really The like and about and solid It recapture? really think impressive. consumers What how about ahead of what with be should what Sally are your traffic thinks working. And thoughts also, comp is volatile. recapture? looks with interplaying happening traffic, in playing sometimes we fairly was Also, And your is recapture with everybody are out you as can

Denise Paulonis

we going the target that really Sally Marlo Oliver, what is was and a here. thanks for the XX% communicated. recapture were as with delivered in line questions. will jump off about the Overall, I’ll in which needed comp, we pleased start with plan, And in sales we quarter.

come So business, we side as the is anticipate That strong continue that, and particularly color over. year. of through pleased that of the to shift will the see in that the remainder do expected shift

that that in comp About quarter from the half reflected was increase the recapture. of we

remember, the As including with owned factors, year chain business, up combined in difference challenged and really you’ll impact the newness Omicron with being brands made and particularly there. QX both other supply last

We what the QX Sally. more in year. we traffic what we’re with was seeing do and though, pleased last quarter broadly, strongest Overall, seeing. what because we’re and inflation of So realize lapping that were

that’s out we general our line we built largely through environment line as in we to be as targets the cadence there what that year year. what came and into really We expected, consumer, into traffic dynamic with with the was a playing with quarterly expected, and we in knowing what we came really market the going expected. trends

squarely on margin, to as right as we’re of deliver half X.X% about that X% with we’re so out out the over a excited which So digits, the around And to comps track operating low we’re averaging see at little is right first set our now, to single through looking a do. coming we comp QX year. what year,

We’re closely Sally right have we there. any customer our and BSG. to consumer watching value think get that and mix behavior experience of that changes the now, I But and to continue shopping newness at enjoy understanding right are to the both

Oliver Chen

made progress. And some inventories you’ve have nice I really know put prudent there. efforts

of Looking ahead, Sally progress by major catalysts to for should are is terms that how BSG inventory? the making? or in we And manifesting what initiatives focus you’re on the relative

Denise Paulonis

Yes.

On the technology and well in have on as in we planning of put technologies. chain we allocation good that the a the terms inventory call, I overall, supply behind there’s with play front, that as as mentioned

so to deliver more that in partners centers from and get be of about need distribution And successfully. And expectations much inventory the seen to flowing and product sharp we’ve against response we’re have. amount we to our really we vendor able ability their in the stores great our

a And head want So we’re year? for really the bit good on about of to we Marlo, do you to rest that. where comment going feel the

Marlo Cormier

Yes.

in $X a So We position state through of expecting we are the the with playing see our improved just Denise bit. as the coming mentioned, we where want under out, in at we over see rest finished, But be year year. how just a to as that progress really billion. billion $X as of inventory we terms just we’re down we

Operator

to line Sandler. Korinne next of Wolfmeyer go the We’ll with Piper

Korinne Wolfmeyer

you’ve unchanged? of here on in it in did parts quarter leaving the can raising trends you the for early maybe And maybe up that kind April. And to on April. the those and early just seeing is of of expand really reasoning the mean, softness were like not guidance about you you good now, just parts some touch guidance. and put I’d obviously, March talk a first I but

Marlo Cormier

Thanks the as the reiterate for out in playing the quarters question. year. year the of we I’ll expected cadence the that into largely coming are

the half, single-digit shape the curve In times in we year. had low QX comps, So QX had for sales with last to comp anticipated back some year. from the what with challenging anticipated reflecting what said, of we with QX as line the really lapping we

our When at the we’ve remains substantial They I’ll with consistent closer frugal, did January that the of but the stylist on very need, in bit as bit that seen February, the few really then quarters. last no and in BSG say a the both we quarter see we prepared buying are against a and Sally side, changes out at and were of to you the on a called there pressure side what consistent coming April. remarks on comment basket with slight more consumer, traffic into being all. We behavior end

outsized, That’s before, brands I where a did for own other focus have we headed in little and that the reinforce, the that’s good newness the to our of some to a we bit I year. and with what there. add more areas we nail side items full reflected of bit we Nothing little But with for that but QX. can we’re really about said feel see outlook focus with where have single-digit Sally basket comp low on coming shift the in in a still frugality a want the as

Korinne Wolfmeyer

then And just... can maybe we Great.

Marlo Cormier

Sorry, go ahead.

Korinne Wolfmeyer

the of just this in how consumer contributed up out and just kind that the the of in just And and end little how much terms patterns professional much comment that? spending consumer is still the business. of BSG spending healthy. you but their stylists holding you on end One time, really is still and the that are channel, Can on Regis that shifting they’re Can like quarter? comment more it’s side in bit of a then

Denise Paulonis

effort continuation might as add-on order, time there. with an between side to before and their In general, money trends little and reverse and the from might a some stretch In they save services or I’ll many bit of get is bit color Yes. just that clients start will have for a BSG of little we’re the hearing stylist the consumer a what treatments, who stylist. in that here stylist not

think that. we in the a sell see to When to drain the very that products continue salon. We of actually that stylists, goes our you down through large the about proportion

that is It small direct retail pros then used business a the to of the is amount by consumer. and

are we as keep for another they a add-on to a products. I piece of good we’re ability that think focused a profitability that on our on product clients very way stylist side with markets that most a product and that way states or it’s leaving our the a will is that stylists they couple know those that then when couple encouraged of piloting the their to retailing retail have them great offering And we’re look and have our to salon use in about platform have today, for well. is

about So We into change throughout And that. seeing think would there in Regis question second your no for at were on all. that largely double and BSG the the We track trend business year. year real in trends been expecting with I Regis. remain had what came we our

So that QX quarter second would consistent turned in been when our That’s is on last we well. year. in that as have

Operator

We’ll line Jefferies. go next with Helgans Ashley to

Ashley Helgans

emerging. hair just thoughts First, any And that current see category, trends color, environment? product promotional you around then care by any the

Denise Paulonis

the remains line what seen is investment for had year environment very with few earlier we’ve Promotional consistent promotion well. seen what with Overall, last we as directionally in Sure. the our in quarters.

We good support. are vendor seeing

good to offerings vendors have that where available, Our are would elasticity our And us is those as we units supporting efforts. like and continue really vendors see there in move. to

And that well. dynamic to appreciate broader watch as we and so the continue

think In trends, category from I terms before. lot seen a of what of continuation we’ve

and the for customer. of side, business what best be the focus the care someone’s on lots On will BSG portion of

base. in both well we to end are Mitchell business. to come So they the that stylist need, they from think very see excited Paul treatment that what’s bonding Really day, need resonate help new that with that of our the what’s out the going and at Wella the products John

vivid also that’s goes. what great about getting even are we’re where in line to see terms BSG really round distribution side our excited and portfolio and of ColorView on for of the a Danger trendy response, for. are very the then us, very Jones, come looking excited around And packaging consumers what’s We out, Amica for color out the that

express So in on a still focus general, color. we’re seeing lot of

in excited gray BSG -- interest coming broadly challenged. partners products And XX% newness and hair extremely then the great they’ve That while our through steady that very the as quarter. fully some fun the really strong, this add-ons. brands, repair channel that’s mean this interest the more there. little we’re challenges. But held pandemic-related in quarter and from coverage And It Sally supply kind vendor they coverage lapped up great up now of side, gray remains on chain meant really doesn’t grew. other seeing steps were a own in is more our just

about but trending that the into what’s huge a trends getting the think in things You Taylor there of of business, kind [Cartincil]. current Swift behind things like the the out reflect People and Not are environment marketplace. that.

Operator

We’ll line the Tong. go next Olivia of to

Olivia Tong

you I the BSG factor. Sally talk can But differentiation more wanted -- drove SBS it obviously, the and between performance closures BSG? your more side And side. is pronounced performance of BSG about you SBS else between comp and because to versus delta about a what the big significantly that on in the sounds store that’s than magnitude ask at like

Denise Paulonis

Yes.

of a the to terms returned in or then digits. there BSG the and as magnitude out single strong low strong -- of comp positive comp key the the think a comp being X%, the at I yes, So

category level side. especially optimization. Sally half mentioned, underneath comp that, you about of being or half color As that strong And in then at we’ve that by got the is over the store performance, SBS our on driven

on side. year, got was we’re And about Omicron that we’re well then BSG year-over-year supply appear BSG we inflationary side, we the side. chain that comparison big to drag trying not some from the well just degree thinking to performance, a we’ve as that And the that as was same the in of Sally pressures seen lap terms the had to as have but really starting challenges. last On the big side. it in on on That a that Sally

Olivia Tong

loyalty to million our members talk new profile frequency basket, members? efforts you talked this versus they the are Could XX of talk active nonmembers, but non-loyalty about made what -- convert bit your made the Or little average can into over people? there’s are being conference, sales then are to a a little loyalty and now purchase members And of to at the loyalty we of relative of about -- being bit X/X the members, average you more about efforts what sales. them

Denise Paulonis

don’t new. members program. up Let me When first our benefit that be non-loyalty, they with nonloyalty definitely of what think They so that to penetration into terms higher the not with identified typically -- yet between be and of might They in putting want could basket. in higher The differential nonloyalty try do signing and come their likely choose who one. to we the loyalty start we transactions, loyalty be could for see basket, transactions. and shopping loyalty, loyalty about see cross-category I’ll to frequent more just through also reverse are order. remain the members folks they’re members for the time or in our

average see reflected being customer. the in basket. as And really both spend that we size that within the the tier Xx up. than customers while or loyalty come shoppers. top really They really on platform loyalty of color-oriented as will a typically within well in frequency more all, basket And per frequently our total X group year with love them our program, our focused heavy we’re are They that have the we are

to also Sally do to continue to get So they we participate that we of things to and do credit how would can will card we if also talk them offering that have about And so. program. come the them in choose incent terms customers a our

in We Sally doing who for them then pay. on is it enhance X% the customer opportunity, the as that But see lower see ways BSG to keep we advantage. the well we that penetration on have to much experience give side things penetration And Pros shopping might and another the to side. particularly be than Sally with more

We recently opportunity now on bringing actually later the And increasing launched us, as and site. well. our basket pay in it’s buy Klarna is customers e-commerce to new

people things a and electrical more great payment are participate through. want categories where could that bit more simple might to they for a they it’s expensive, the process in So a go more potential

continue innovate new as ways mix that we So other the into to would bring well. on customers

Operator

of line We’ll go to Simeon the with next Gutman Morgan Stanley.

Michael Kessler

Simeon. is on This Kessler for Michael

structure. question expense on a the Just

savings sounds from the DC just talk path? or I about Can getting point normalizing like staffing, path we to guess, is closures. normalization where comp or -- you labor store that on business? are going all there. about a forward, leverage steady-state that the talked mean, how level does And think You for of about It kind advertising

Denise Paulonis

Yes.

On the up SG&A well side, a step talk right, from QX, how QX is it about to about from dollar so a think basis, we did last as year. as

But driven we low terms accrual. given and and the year-over-year, It wage the a merit. is that’s would point, kind it of of the wages, how from stabilization look in at So last QX. compared is Thinking expect a the about of you of more forward by at of There pressure. just single-digit rate inflation increase that bonus year. a and from it step-up a bit going wage run timing

Operator

Gutman? further Mr. Anything

Michael Kessler

good. All

Operator

closing now for Denise I’ll remarks. to over turn And it some

Denise Paulonis

us joining I morning. and appreciate this everyone you, Thank

our We be you every in a world Sally excited associates on look path our for final the continue the to you to serve updates future. do help additional of as is customers. providing and to day the forward always, And thank very note, as to all all Holdings Beauty that across about

Operator

Thank that replay company’s refer as today. Thank today’s for for the your bond recorded our to That for reminder, was you. participation conclude AT&T Conferencing. press And conference replay. a using release Please conference information. for does you and for

You may now disconnect.

Sally Beauty (SBH) 4 May 232023 Q2 Earnings call transcript