Attractiveness: Sally Attractiveness Holdings sees similar gross sales drop in Q2

Sally Beauty Holdings (NYSE:SBH) traded flat in premarket action on Thursday after posting a mixed Q2 earnings report.

Total sales were down 6.0% during the quarter and comparable sales fell 3.6%. The sales decreases were driven primarily by continued inflationary pressures, supply chain challenges and the difficult comparisons to last year. The Sally Beauty Supply segment saw a sales drop of 8.5% during the quarter.

Consolidated gross margin was up 70 bps to 51.0% of sales, driven primarily by higher product margins at both Sally Beauty and Beauty Systems Group, partially offset by higher distribution and freight costs.

At the end of Q2, the retailer’s inventory was up 8.5% to $1.01B.

Looking ahead, Sally Beauty (SBH) sees FY22 revenue falling 2% to around $3.80B vs. $3.82B consensus. Comparable sales are expected to be down 3.6% in Q3. Adjusted operating margin is expected to be approximately 10.5%.

CEO outlook: “With a healthy balance sheet, a strong operating infrastructure and a sticky core customer, we are well positioned to continue navigating the complex macro environment and remain focused on our four key growth pillars.”

SBH -0.07% premarket to $13.84 following the Q2 report.