Sally Beauty Holdings Inc (SBH) 2024 Q3 法說會逐字稿

Good morning, everyone, and welcome to the Sally Beauty Holdings conference call to discuss the company's third quarter fiscal 2024 results. (Operator Instructions)

大家早安，歡迎參加 Sally Beauty Holdings 電話會議，討論該公司 2024 財年第三季業績。（操作員說明）

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

現在我想將電話轉給 Sally Beauty Holdings 投資者關係副總裁兼財務主管 Jeff Harkins。

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

謝謝。大家早安，感謝您加入我們。今天與我一起參加電話會議的是執行長 Denise Paulonis；和財務長 Marlo Cormier。

Before we begin, I would like to remind everyone that management's remarks on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent annual report on Form 10-K and other filings with the SEC. Any forward-looking statements made on this call represent our views only as of today and we undertake no obligations to update them. The company has provided a detailed explanation and reconciliations of its adjusting items and non-GAAP financial measures in its earnings press release and on its website.

在我們開始之前，我想提醒大家，管理階層在這次電話會議上的言論可能包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。由於各種重要因素，包括我們最新 10-K 表格年度報告和向 SEC 提交的其他文件的風險因素部分中討論的因素，實際結果可能與這些前瞻性陳述所示的結果存在重大差異。本次電話會議中所做的任何前瞻性陳述僅代表我們今天的觀點，我們不承擔更新這些陳述的義務。該公司在其收益新聞稿和網站上提供了對其調整項目和非公認會計原則財務指標的詳細解釋和調節。

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

現在我想把電話轉給丹尼斯，讓她開始正式發言。

Thank you, Jeff, and good morning, everyone. Our third quarter results point to improving trends across both segments of our business, Sally Beauty and Beauty Systems Group. We delivered net sales growth of 1.2% and a comparable sales increase of 1.5% above the high end of our latest guidance range. Our top-line performance reflects continued momentum and fundamental strength in our BSG segment as well as a notable improvement in performance at Sally, reflecting the traction we're gaining from our strategic initiatives.

謝謝你，傑夫，大家早安。我們第三季的業績顯示我們的兩個業務部門（莎莉美容和美容系統集團）的趨勢都在改善。我們的淨銷售額成長了 1.2%，可比銷售額成長了 1.5%，高於最新指導範圍的上限。我們的營收績效反映了 BSG 部門的持續發展動能和基本實力，以及 Sally 績效的顯著改善，反映出我們從策略舉措中獲得的牽引力。

Adjusted gross margin was strong at 51% and adjusted operating margin also came in above our guidance range at 8.9%. Our business generated solid cash flows from operations of $48 million, enabling us to continue to return capital to shareholders by way of share repurchases in the quarter.

調整後毛利率高達 51%，調整後營業利益率也高於我們 8.9% 的指引範圍。我們的業務產生了 4,800 萬美元的穩定現金流，使我們能夠在本季繼續透過股票回購的方式向股東返還資本。

Looking at performance by segment. I'll start with BSG. Q3 comparable sales increased 2.6%, representing our third consecutive quarter of positive comps. Comparable transactions in the quarter were up 4% and average ticket was down 1%.

按細分市場查看業績。我將從 BSG 開始。第三季可比銷售額成長 2.6%，代表我們連續第三個季度實現積極比較。本季的可比交易量增加了 4%，平均票價下降了 1%。

From a category perspective, sales in both color and care grew for the second quarter in a row, up 3% and up 5%, respectively. Additionally, our expanded distribution drove strong performance across key brands, including Amika and Color Wow as well as Moroccan Oil, which we will launch in California, one of our largest markets in the fourth quarter.

從品類來看，彩妝和護理品銷售額第二季持續成長，分別成長 3% 和 5%。此外，我們擴大的分銷推動了主要品牌的強勁表現，包括 Amika 和 Color Wow 以及 Moroccan Oil，我們將於第四季度在我們最大的市場之一加州推出這些品牌。

We're pleased to see consistent underlying strength across our BSG business, reflecting the combination of stable salon demand trends, expanded distribution and robust product innovation. Sally's purchasing patterns remain healthy, although the trend of stylists buying closer to need may be the new norm post-pandemic.

我們很高興看到我們的 BSG 業務始終保持潛在優勢，反映出穩定的沙龍需求趨勢、擴大的分銷和強勁的產品創新的結合。儘管造型師購買更接近需求的趨勢可能成為疫情後的新常態，但莎莉的購買模式仍然健康。

As we continue to capture share gains, we believe the business is poised to build on existing momentum as we enter fiscal 2025. As the leader for the professional stylist community in North America, we are well positioned to leverage our size and scale to fuel continuing growth.

隨著我們繼續獲得份額收益，我們相信，進入 2025 財年時，該業務將在現有勢頭的基礎上再接再厲。作為北美專業造型師社群的領導者，我們處於有利位置，可以利用我們的規模來推動持續成長。

Turning now to our Sally segment. We saw a notable positive turn in the business driven by a number of our customer-centric initiatives, including performance marketing, marketplace expansions and digital enhancements. Q3 comparable sales increased 0.7%, with comparable transactions down 3% and average ticket value up 3%.

現在轉向我們的莎莉部分。在一系列以客戶為中心的舉措（包括績效行銷、市場擴張和數位增強）的推動下，我們的業務出現了顯著的正面轉變。第三季可比銷售額成長 0.7%，可比交易量下降 3%，平均票價上漲 3%。

We continue to see consumers exercising caution around spending, and we are monitoring purchasing behavior closely, remaining nimble and adjusting tactics is needed. To that end, in Q3, we implemented changes to the design, depth and duration of our promotions, and customers responded favorably, resulting in a higher AUR.

我們繼續看到消費者在支出方面保持謹慎，我們正在密切監控購買行為，保持靈活性並需要調整策略。為此，我們在第三季對促銷的設計、深度和持續時間進行了更改，客戶反應良好，從而實現了更高的 AUR。

We were also pleased to see that our focus on retaining and growing our loyalty base is bearing fruit. During the quarter, our target marketing campaigns drove strong customer reactivation and brought new customers into our loyalty program.

我們也很高興地看到，我們對保留和發展忠誠度基礎的關注正在取得成果。在本季度，我們的目標行銷活動推動了強勁的客戶重新激活，並將新客戶納入我們的忠誠度計劃。

For the third quarter, we generated 78% of our sales at Sally US and Canada from our 16 million loyalty members. Additionally, our elite loyalty members, who represent our most valuable and frequent shoppers, grew by 6% year-over-year.

第三季度，Sally 美國和加拿大 78% 的銷售額來自我們的 1,600 萬忠誠會員。此外，我們的精英忠誠會員（代表我們最有價值和最頻繁的購物者）同比增長了 6%。

The Sally brand has never been stronger. With a record Net Promoter Score of 86 for our third quarter, up 4 points versus a year ago. Across all of our businesses, our teams are delivering strong execution on our core strategic initiatives of enhancing our customer centricity, growing our high-margin owned brands and amplifying innovation and increasing the efficiency of our operations. For our third quarter, product innovation, territory expansion, and new services contributed over 250 basis points to our comparable sales results, and we remain on track to achieve our expected 200 to 300 basis points of contribution from these initiatives for the full year.

莎莉品牌從未如此強大。第三季的淨推薦值達到創紀錄的 86 分，比去年同期上升 4 分。在我們所有的業務中，我們的團隊正在大力執行我們的核心策略舉措，即加強以客戶為中心、發展我們的高利潤自有品牌、擴大創新並提高我們的營運效率。第三季度，產品創新、領土擴張和新服務為我們的可比較銷售業績貢獻了超過 250 個基點，並且我們仍有望實現全年這些舉措的預期貢獻 200 至 300 個基點。

Looking at product innovation, a consistent pipeline in both the BSG and Sally segment is helping us drive growth and customer engagement. At BSG, new products like Money Mist from Color Wow and Neuro hair dryers from Paul Mitchell are fueling excitement, while other 2024 launches including Briogeo and epres are continuing to perform well. From a trend perspective, blonding, express coloring, and bonding remains strong, as well as conscious beauty. At Sally, consumers are responding to innovation in men's grooming and mindful brands, including Inspired by Nature and plantheory, our own brand focused on mood enhancing skin care.

在產品創新方面，BSG 和 Sally 領域的一致管道正在幫助我們推動成長和客戶參與。在 BSG，Color Wow 的 Money Mist 和 Paul Mitchell 的 Neuro 吹風機等新產品令人興奮，而包括 Briogeo 和 epres 在內的其他 2024 年推出的產品繼續表現良好。從趨勢的角度來看，金髮、鮮豔的色彩和親密感以及有意識的美仍然很強大。在 Sally，消費者對男士美容和用心品牌的創新做出了回應，包括 Inspired by Nature 和 plantheory（我們自己的品牌專注於改善情緒的皮膚護理）。

In Q3, owned brand sales penetration for the Global Sally Beauty segment was 34%. Building on the momentum from our rooted in success marketing campaign, during Q3, we celebrated Pride Month with activation and collaborations across the country.

第三季度，全球 Sally Beauty 細分市場的自有品牌銷售滲透率為 34%。憑藉我們根植於成功的行銷活動的勢頭，在第三季度，我們在全國範圍內開展了活動和合作，慶祝了驕傲月。

Turning now to customer centricity. Our newest concepts and services are performing and building momentum. Starting with Licensed Colorist OnDemand. In Q3, 44% of customers who engaged in this service were new to Sally. That's up from 40% in Q2 and tells us our top-of-funnel work is paying dividend. Additionally, color consultations averaged over 3,300 per week, and the average ticket value increased to $37, up from $35 in Q2.

現在轉向以客戶為中心。我們最新的概念和服務正在發揮作用並積累動力。從許可調色師 OnDemand 開始。第三季度，參與這項服務的客戶中有 44% 是 Sally 的新客戶。這比第二季的 40% 有所上升，這告訴我們我們的漏斗頂部工作正在帶來紅利。此外，色彩諮詢平均每週超過 3,300 次，平均票價從第二季的 35 美元增加到 37 美元。

Our marketplace initiative also continues to gain traction with strong performance across Amazon and Walmart as well as DoorDash, which is driving incremental growth since this launch in Q2. Most recently, we added Instacart and early results tell us this will serve another important platform to meet the consumer where they are in building awareness.

我們的市場計劃也因亞馬遜、沃爾瑪以及 DoorDash 的強勁表​​現而繼續受到關注，自第二季度推出以來，DoorDash 一直在推動增量成長。最近，我們加入了 Instacart，早期結果告訴我們，這將成為另一個重要平台，以滿足消費者在建立意識方面的需求。

Wrapping up with Happy Beauty. As a reminder, this new concept further expands our reach, focusing on customers looking for beauty at value price points while not compromising on an engaging experience. Building on the learnings from our initial test pilot stores, we're on track to open an additional 10 pilot stores in the Dallas and Phoenix markets prior to the start of the holiday season. This includes six strip center locations as well as four mall locations, which will broaden our exposure to some of the demographic profiles that have done well in our initial pilots.

以快樂美麗結束。提醒一下，這個新概念進一步擴大了我們的影響範圍，專注於以物超所值的價格尋找美麗的客戶，同時又不影響引人入勝的體驗。根據我們最初試點商店的經驗教訓，我們預計在假期季節開始之前在達拉斯和菲尼克斯市場另外開設 10 家試點商店。這包括六個地帶中心地點以及四個購物中心地點，這將擴大我們對一些在我們最初的試點中表現良好的人口統計資料的接觸。

From a category perspective, we're seeing strong demand in cosmetics and fragrance. There's notable strength in units per transactions and average transaction value. And we continue to experiment with traffic-driving initiatives, including an increased focus on social. As we continue to advance our core strategic initiatives, we are also focused on driving profitability and progressing towards our long-term growth algorithm.

從品類角度來看，我們看到化妝品和香水的需求強勁。每筆交易的單位數和平均交易額都有顯著的優勢。我們繼續嘗試交通驅動舉措，包括更加關注社交。在我們繼續推進核心策略舉措的同時，我們也專注於提高獲利能力並朝著長期成長演算法邁進。

In addition to the efficiency work we had underway internally, we engaged a third-party expert to review our cost base and help us build our Fuel for Growth plan, which is an important component of how we deliver on our profitability target. We continue to engage third-party support to help us implement this important initiative that will benefit our gross margin, expense structure and bottom line. We remain on track to generate cumulative run rate benefits approaching $120 million by the end of fiscal 2026.

除了我們內部正在進行的效率工作外，我們還聘請了第三方專家來審查我們的成本基礎並幫助我們制定成長燃料計劃，這是我們實現獲利目標的重要組成部分。我們將繼續尋求第三方支援來幫助我們實施這項重要舉措，這將有利於我們的毛利率、費用結構和利潤。我們仍有望在 2026 財年末實現累積運轉率效益接近 1.2 億美元。

As we enter the final quarter of our fiscal year and we remain focused on driving profitable top-line growth, we're pleased to see improving trends throughout the P&L. I'd like to thank our teams across the organization for their ongoing focus, execution and dedication. This collective effort is an essential part of our culture and our ability to deliver an engaging experience for our customers. As always, we remain committed to our growth agenda and long-term value creation for our shareholders.

隨著我們進入本財年的最後一個季度，我們仍然專注於推動獲利的營收成長，我們很高興看到整個損益表的改善趨勢。我要感謝整個組織的團隊持續的專注、執行和奉獻。這種集體努力是我們文化的重要組成部分，也是我們為客戶提供引人入勝的體驗的能力的重要組成部分。一如既往，我們仍然致力於我們的成長議程和為股東創造長期價值。

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

現在我將把電話轉給馬洛討論財務問題。

Thank you, Denise, and good morning, everyone. Our third quarter results were highlighted by positive top line performance in both our Sally and BSG segment. Solid gross margins and adjusted operating margin above our latest guidance range. The results reflect underlying strengths at BSG, which delivered a third consecutive quarter of positive comparable sales growth as well as renewed momentum at Sally resulting from our strategic initiatives that Denise just outlined.

謝謝你，丹尼斯，大家早安。Sally 和 BSG 部門的積極營收績效凸顯了我們第三季的表現。穩健的毛利率和調整後的營業利潤率高於我們最新的指導範圍。這些結果反映了 BSG 的潛在優勢，該公司連續第三個季度實現了可比銷售額的正增長，而丹尼斯剛剛概述的戰略舉措使 Sally 恢復了新的勢頭。

Third quarter consolidated net sales of $942 million increased 1.2%, while consolidated comparable sales grew 1.5%. Global e-commerce sales were $92 million and represented 10% of total net sales.

第三季綜合淨銷售額為 9.42 億美元，成長 1.2%，綜合可比銷售額成長 1.5%。全球電子商務銷售額為 9,200 萬美元，佔總淨銷售額的 10%。

Looking at gross profit, we again delivered solid gross margins, which came in at 51%, flat to last year. Excluding last year's true-up of the noncash inventory write-down related to the distribution center consolidation and store optimization plan that we executed last year, adjusted gross margin was 51%. That's up 10 basis points versus a year ago and reflects lower distribution and freight costs resulting from supply chain efficiencies, partially offset by unfavorable fixed cost absorption.

從毛利來看，我們再次實現了穩健的毛利率，為 51%，與去年持平。不包括去年與我們去年執行的配送中心整合和商店優化計劃相關的非現金庫存減記的調整，調整後的毛利率為 51%。這比一年前上升了 10 個基點，反映出供應鏈效率提高導致分銷和貨運成本下降，但部分被不利的固定成本吸收所抵消。

Third quarter adjusted SG&A expenses totaled $397 million, roughly flat to Q2 and up $13 million versus a year ago as we anticipated. The year-over-year increase can primarily be traced to higher labor and other compensation-related expenses as well as planned increases in advertising spend, including upper funnel marketing. This was partially offset by $4.8 million of savings resulting from our Fuel for Growth program.

第三季調整後的 SG&A 費用總計 3.97 億美元，與第二季大致持平，但正如我們預期的那樣，與去年同期相比增加了 1,300 萬美元。年成長主要歸因於勞動力和其他薪酬相關費用的增加以及廣告支出的計劃增加，包括上漏斗行銷。這部分被我們的成長燃料計劃節省的 480 萬美元所抵消。

We're pleased with the progress we are making with Fuel for Growth. We remain on track with our plan to achieve approximately $20 million of pretax benefits to gross margin and SG&A this year and up to $120 million in cumulative benefit in fiscal 2026. As is typical with this type of project, the nature and timing of benefit capture evolves as the work matures.

我們對「成長燃料」所取得的進展感到高興。我們仍按計畫實現今年毛利率和銷售管理費用約 2,000 萬美元的稅前收益，並在 2026 財年實現高達 1.2 億美元的累計收益。正如此類專案的典型情況一樣，利益獲取的性質和時機隨著工作的成熟而變化。

To this end, we now expect two-thirds of the $20 million in benefit in fiscal 2024 to come from SG&A, and a third to come from gross margin. There's a slight shift from our previously anticipated split of 75% SG&A and 25% gross margin.

為此，我們現在預計 2024 財年 2,000 萬美元的收益中，三分之二將來自 SG&A，三分之一來自毛利率。這與我們先前預期的 75% SG&A 和 25% 毛利率的分配略有不同。

As a reminder, for full year fiscal 2024, we expect to incur up to $30 million in pretax cash charges associated with the Fuel for Growth program, including $26 million that has been realized year-to-date. Strong performance across sales and gross margins, coupled with our Fuel for Growth program drove third quarter adjusted operating margin of 8.9%. Adjusted EBITDA margin was 12.4% and adjusted diluted EPS came in at $0.45.

提醒一下，在 2024 財年全年，我們預計將產生與成長燃料計畫相關的高達 3,000 萬美元的稅前現金費用，其中包括今年迄今已實現的 2,600 萬美元。銷售和毛利率的強勁表現，加上我們的成長燃料計劃，推動第三季調整後營業利潤率達到 8.9%。調整後的 EBITDA 利潤率為 12.4%，調整後的稀釋後每股收益為 0.45 美元。

Moving to segment results. We were pleased to see improved performance at Sally Beauty with comparable sales up 0.7% following a 4% decline in Q2. Net sales were also in positive territory, up slightly versus a year ago. At constant currency, Sally e-commerce sales were $37 million and represented 7% of segment net sales for the quarter. Customers responded to our strategic initiatives including performance marketing efforts, market expansions and digital enhancements.

轉向細分結果。我們很高興看到 Sally Beauty 的業績有所改善，可比銷售額繼第二季下降 4% 後成長 0.7%。淨銷售額也處於正值，與去年同期相比略有上升。以固定匯率計算，Sally 電子商務銷售額為 3,700 萬美元，佔該季度部門淨銷售額的 7%。客戶對我們的策略性舉措做出了回應，包括績效行銷工作、市場擴張和數位增強。

For the Global Sally Beauty segment, color was essentially flat to the prior year, while care was up 2% and nails were up 5%. At Sally US and Canada, color was up 1%, care was up 2% and nails were up 6%. As Denise mentioned, we generated 78% of our sales at Sally US and Canada from our 16 million loyalty members. Gross margin in our Sally segment was 59.8%, up 100 basis points to last year, reflecting supply chain efficiencies and stronger product margins, partially offset by unfavorable fixed cost absorption. Segment operating margin came in at 16.2%.

對於全球 Sally Beauty 細分市場，色彩與上一年基本持平，而護理產品增長了 2%，美甲產品增長了 5%。在 Sally 美國和加拿大，色彩價格上漲了 1%，護理價格上漲了 2%，指甲價格上漲了 6%。正如 Denise 所提到的，Sally 美國和加拿大 78% 的銷售額來自我們的 1,600 萬名忠誠會員。Sally 部門的毛利率為 59.8%，比去年增長 100 個基點，反映出供應鏈效率和產品利潤率的提高，但部分被不利的固定成本吸收所抵消。部門營業利益率為 16.2%。

Moving now to the BSG segment, where continued momentum was driven by expanded distribution and product innovation. Comparable sales increased 2.6%, while net sales were up 2.5%. On a constant currency basis, BSG e-commerce sales were $54 million, representing 13% of segment net sales for the quarter. From a category perspective, color was up 3% and care was up 5%.

現在轉向 BSG 領域，該領域的持續成長勢頭是由擴大的分銷和產品創新所推動的。可比銷售額成長 2.6%，淨銷售額成長 2.5%。以固定匯率計算，BSG 電子商務銷售額為 5,400 萬美元，佔該季度部門淨銷售額的 13%。從品類來看，彩妝類別成長了 3%，護理類別增加了 5%。

Gross margin at BSG was 39.4%. That's down 110 basis points versus a year ago, primarily due to unfavorable fixed cost absorption as well as lower product margin, which reflects a higher participation rate in our customer appreciation sales as well as brand mix. This was partially offset by the benefits of our supply chain efficiencies. Segment operating margin was 11.5%.

BSG 的毛利率為 39.4%。與一年前相比下降了 110 個基點，主要是由於固定成本吸收不利以及產品利潤率較低，這反映出我們的客戶答謝銷售和品牌組合的參與率較高。我們的供應鏈效率帶來的好處部分抵銷了這種影響。分部營業利益率為 11.5%。

Turning to the balance sheet and cash flow. We ended the third quarter with $97 million of cash and cash equivalents and $45 million outstanding under our asset-based revolving line of credit. Our net debt leverage ratio stood at 2.2 times.

轉向資產負債表和現金流量。截至第三季末，我們的以資產為基礎的循環信貸額度下有 9,700 萬美元的現金和現金等價物以及 4,500 萬美元的未償餘額。我們的淨負債槓桿率為2.2倍。

During the quarter, we successfully repriced our term loan B from SOFR plus 225 to SOFR plus 175. The 50-basis-point reduction in the spreads translates to annual interest expense savings of approximately $2 million. Quarter-end inventory was slightly over $1 billion, which is in line with our expectations and reflects an overall healthy position.

本季度，我們成功地將定期貸款 B 從 SOFR 加 225 重新定價為 SOFR 加 175。利差降低 50 個基點意味著每年可節省約 200 萬美元的利息費用。季末庫存略高於 10 億美元，符合我們的預期並反映了整體健康狀況。

Cash flow from operations remained strong, providing us with the flexibility to invest behind our strategic initiatives and return value to shareholders through additional share repurchases. During Q3, we generated operating cash flow of $48 million and operating free cash flow of $29 million. And we repurchased approximately 900,000 shares of stock at an aggregate cost of $10 million under our share repurchase plan.

來自營運的現金流仍然強勁，使我們能夠靈活地投資於我們的策略計劃，並透過額外的股票回購為股東回報價值。第三季度，我們產生了 4,800 萬美元的營運現金流和 2,900 萬美元的營運自由現金流。根據我們的股票回購計劃，我們以總成本 1000 萬美元回購了約 90 萬股股票。

Turning now to guidance. Based on the strength of our year-to-date performance, we are pleased to reiterate our full year expectations as follows: full year net sales and comparable sales approximately flat, gross margin in the range of 50.5% to 51%, adjusted operating margin of approximately 8.5%, operating cash flow of approximately $240 million and capital expenditures totaling approximately $100 million.

現在轉向指導。基於我們今年迄今的強勁業績，我們很高興重申我們的全年預期如下：全年淨銷售額和可比銷售額大致持平，毛利率在 50.5% 至 51% 之間，調整後營業利潤率約8.5% ，經營現金流約2.4億美元，資本支出總計約1億美元。

Looking at the fourth quarter, we anticipate that top line momentum will continue at both Sally Beauty and BSG. Additionally, we expect consolidated operating margin dollars and operating margin rate to expand on a year-over-year basis. More specifically, we expect net sales growth to be in the range of up 1% to 2% with comparable sales slightly better.

展望第四季度，我們預計 Sally Beauty 和 BSG 的營收動能將持續下去。此外，我們預計合併營業利潤率和營業利潤率將比去年同期擴大。更具體地說，我們預計淨銷售額成長將在 1% 至 2% 之間，可比銷售額略好一些。

We expect the gross margin rate in Q4 to be similar to Q3 and SG&A dollars to be slightly favorable to Q3. Additionally, we anticipate that fourth quarter adjusted operating margin will be approximately 9%. Lastly, we expect investments in share repurchases in the fourth quarter to be approximately $10 million.

我們預計第四季的毛利率將與第三季相似，SG&A 美元將略好於第三季。此外，我們預計第四季度調整後營業利潤率約為 9%。最後，我們預計第四季股票回購投資約為 1,000 萬美元。

In summary, we are pleased with our progress and third quarter results that are reflecting improving trends in both our business segments, as well as results from our growth initiatives. Entering the final quarter of fiscal 2024, we remain focused on driving our strategic pillars, including our Fuel for Growth initiative.

總而言之，我們對我們的進展和第三季業績感到滿意，這反映了我們兩個業務部門的改善趨勢以及我們的成長計畫的結果。進入 2024 財年最後一個季度，我們仍然專注於推動我們的策略支柱，包括我們的成長燃料計畫。

We appreciate your time this morning. Now I'll ask the operator to open the call for Q&A.

我們非常感謝您今天早上的寶貴時間。現在我將要求接線員打開電話進行問答。

(Operator Instructions) Oliver Chen, TD Cowen.

（操作員說明）Oliver Chen，TD Cowen。

Consumer sentiment has been mixed. As you know, it's been pressured at the middle and low. Has that manifested in the banners currently and/or what are you seeing? And would love any thoughts on that difficult question we're getting around potential election impact and/or if you saw things in the past that might be related to now?

消費者情緒好壞參半。如你所知，它在中低端受到壓力。目前的橫幅中是否體現了這一點和/或您看到了什麼？並且希望對我們正在解決的潛在選舉影響的難題有任何想法和/或您是否看到過去可能與現在相關的事情？

Also, the category call-outs were very helpful regarding hair, nail and color. Do you expect those trends to remain similar? Or what are your thoughts on each of those categories as they affect your banners?

此外，關於頭髮、指甲和顏色的類別標註也非常有幫助。您預期這些趨勢會保持相似嗎？或者您對每個類別有何看法，因為它們會影響您的橫幅？

And then finally, as we're all modeling, monitoring tariffs, any thoughts you have in terms of sourcing? You have a lot of different partners as well as a lot of private label.

最後，由於我們都在建模、監控關稅，您在採購上有什麼想法嗎？您有很多不同的合作夥伴以及很多自有品牌。

This is Denise. I'll start with some questions, and I'm sure Marlo will jump in. Overall in the market, let me break it out as we always do between BSG and Sally. BSG, we're seeing salon demand trends quite stabilized. I don't see any near-term catalyst for that to change. We're seeing the benefit of expanded distribution and product innovation. So I really believe that that salon client is enjoying their experience in shopping with BSG and look forward for that to continue.

這是丹妮絲。我將從一些問題開始，我相信馬洛會介入。總體而言，在市場方面，讓我像往常一樣在 BSG 和 Sally 之間進行區分。BSG，我們看到沙龍需求趨勢相當穩定。我認為短期內沒有任何催化劑可以改變這種情況。我們看到了擴大分銷和產品創新的好處。所以我真的相信沙龍客戶很享受在 BSG 購物的體驗，並期待這種情況繼續下去。

On the Sally side, we've watched two consistent themes all year, right? That customer is remaining frugal and purchasing behavior is primarily driven by need. We also watch customers to be very price sensitive and leaning into promotion as they manage through the inflationary environment. We've seen that to be pretty stable. We're really pleased with what we were able to do in Q3 and adjusting some of our promotional strategies to kind of meet the consumer where they are, but improving our AUR in the process and also seeing the increased impact of our strategic initiatives coming through on the Sally side. So marketplaces, Licensed Colorist OnDemand.

在莎莉方面，我們一整年都看到了兩個一致的主題，對吧？該客戶仍然保持節儉，購買行為主要是由需求驅動的。我們也觀察到，客戶在應對通膨環境時對價格非常敏感，並傾向於促銷。我們已經看到它相當穩定。我們對第三季所做的事情感到非常滿意，並調整了一些促銷策略以滿足消費者的需求，但在此過程中提高了我們的 AUR，並看到我們的策略舉措的影響力不斷增加在莎莉這邊。因此，市場、許可調色師按需。

So when we step back from all of that, as we're looking forward into our Q4 environment, the months ahead, we feel good about the trajectory of both of those businesses to deliver positive comps into the fourth quarter. And we're watching very closely what we always watch is we will see inflationary trends, perhaps influence the customer or other macro.

因此，當我們從這一切中退一步時，當我們展望第四季度的環境時，即未來幾個月，我們對這兩家公司在第四季度實現積極業績的軌跡感到滿意。我們正在密切關注我們一直關注的，我們將看到通膨趨勢，可能會影響客戶或其他宏觀因素。

When it comes to the election, the thing I think we're always most sensitive to is what will happen to marketing rates and things like that to allow us to keep investing, to gain that top-of-funnel customer come through. We're navigating it and feel that it's within our control to do that. And we're pleased with what we've seen of the results there in terms of performance marketing, being able to drive new and reactivated customers into the fold.

當談到選舉時，我認為我們最敏感的事情總是行銷率和類似的事情會發生什麼，以便我們可以繼續投資，以獲得漏斗頂部的客戶。我們正在探索它，並認為這是在我們的控制範圍內。我們對在績效行銷方面看到的結果感到滿意，能夠吸引新客戶和重新激活的客戶。

And category call-outs, I think color and hair, we expect both to continue on positive trajectory. Nails in Sally, it's really fueled by some new innovation coming in, and we're feeling good about that as well. So all in all, from a category perspective, I don't expect there to be a substantial change from what we're seeing right now.

至於類別標註，我認為顏色和頭髮，我們預計兩者都會繼續走上積極的軌道。莎莉的釘子，它確實受到了一些新創新的推動，我們對此也感覺很好。總而言之，從類別的角度來看，我不認為我們現在看到的情況會發生重大變化。

And then I think your last question on sourcing. And at the end of the day, about 10% of what we source comes in from Asia. So it's a pretty small percentage of exposure to us. We watch that pretty closely. We work with our manufacturing providers to be sure that we're well distributed and how we think about it. And for us, freight costs, while it's part of our equation, it's not nearly as material as it might be for some others who have more exposure.

然後我想你最後一個關於採購的問題。歸根究底，我們大約 10% 的採購來自亞洲。所以這對我們來說只佔很小的比例。我們非常密切地關注這一點。我們與製造供應商合作，以確保我們的分佈良好以及我們如何看待它。對我們來說，運費雖然是我們等式的一部分，但它並不像其他一些有更多曝光率的人那麼重要。

Korinne Wolfmeyer, Piper Sandler.

科琳·沃爾夫邁耶，派珀·桑德勒。

I'd like to touch a little bit on the guidance and the expectations you laid out for fiscal Q4. You delivered a pretty good margins here in fiscal Q3. Noted they came in ahead of your guidance and your expectations. So what is the reasoning behind leaving your full year expectations unchanged? Is it just a little bit of conservatism? Are you seeing any shifts in demand trends or shifts in the cost structure that would cause you to leave it unchanged? Or any color there would be helpful.

我想談談您對第四財季的指導和預期。你們在第三財季取得了相當不錯的利潤。注意到他們的出現超出了您的指導和期望。那麼，全年預期保持不變的原因是什麼？這只是一點點保守主義嗎？您是否發現需求趨勢或成本結構發生任何變化而導致您保持不變？或任何顏色都會有幫助。

Yes. Happy to answer that. Our guidance really reflects the strength of Q3 as well as year-over-year improvement in top and bottom line that we expect in Q4. Given the macro we're in, we just feel like the guidance is good that we're providing. If you think about a little bit of the color, in Q3, we were modestly ahead in what we reported. We were pleased that a lot of that being ahead was on the path with our strategic initiatives in the right direction with the Sally brand.

是的。很高興回答這個問題。我們的指導確實反映了第三季度的實力以及我們預期第四季度營收和利潤的同比改善。考慮到我們所處的宏觀環境，我們只是覺得我們提供的指導是好的。如果你考慮一下顏色，在第三季度，我們在報告中略微領先。我們很高興看到，我們的策略舉措在 Sally 品牌的正確方向上取得了巨大進展。

And when we look to Q4, I mean, most important to us is we're really looking to build upon the positive top line and also deliver positive improvement around adjusted operating profit and adjusted profit margin. So I think we're just reading what's out there in the market. We don't see any material change in trend, but believe the right place for us is to hold guidance right now.

當我們展望第四季度時，我的意思是，對我們來說最重要的是，我們確實希望在積極的營收基礎上再接再厲，並在調整後的營業利潤和調整後的利潤率方面實現積極的改善。所以我認為我們只是在閱讀市場上的情況。我們沒有看到趨勢發生任何重大變化，但相信我們現在應該持有指引。

Got it. Very helpful. And then if you could just touch a little bit more on the promo situation called out in BSG. It sounded like there is a higher take rate in promos kind of like what you pointed out last quarter. Can you give any color, was this incrementally more than what you've seen last quarter? Is it unchanged? Is it improving? And then how are you thinking about the promo environment heading into fiscal Q4?

知道了。非常有幫助。然後您能否再多談談 BSG 中提到的促銷情況。聽起來促銷活動的接受率較高，就像您上季度指出的那樣。您能給出任何顏色嗎？沒有變化嗎？有改善嗎？那麼您如何看待進入第四財季的促銷環境呢？

On the BSG front, as I mentioned, we're really pleased with the strong sales trend that we've had. As we see part of that in the promotional piece of it, customer appreciation sale has been a higher take rate than what we've seen historically. And that's one of our promotions that is only partially funded by our vendors, and we fund that as well.

在 BSG 方面，正如我所提到的，我們對我們所擁有的強勁銷售趨勢感到非常滿意。正如我們在促銷部分看到的那樣，客戶答謝銷售的接受率比我們歷史上看到的要高。這是我們的促銷活動之一，部分資金由我們的供應商提供，我們也提供資金。

The impact to us in Q3 was very similar to Q2, so we aren't seeing any heightened activity there, but we are seeing people want to buy in and take advantage of that promotion. So we're going to keep managing that. But at the moment, we feel good about how customers are reacting as they're coming into the BSG environment, what we're seeing in sales and unit trends and believe that we're sitting in a pretty healthy spot.

第三季對我們的影響與第二季非常相似，因此我們沒有看到任何活動增加，但我們看到人們想要購買並利用該促銷活動。所以我們將繼續管理這一點。但目前，我們對客戶進入 BSG 環境時的反應以及我們在銷售和單位趨勢中看到的情況感到滿意，並相信我們處於一個非常健康的位置。

And then on the Sally side, we talked a little bit about the fact that we still see customers being frugal. Our core customer coming in is buying what they need. We were pleased to see new and reactivated customers head in the right direction this quarter with a lot of our performance marketing and LCOD activity. But we're very aware of their also being promotionally sensitive.

然後在莎莉方面，我們談到了我們仍然看到顧客節儉的事實。我們的核心客戶進來是購買他們需要的東西。我們很高興看到新客戶和重新激活的客戶在本季度透過我們的大量績效行銷和 LCOD 活動朝著正確的方向發展。但我們非常清楚他們對促銷也很敏感。

What we've tried to do in our promotional strategy is still give them great value but drive value in ways that we can still improve AUR and drive frequency. So we're doing less quantity type discounts and more traffic-driving discounts to be getting people into the stores. We think both sets of trends on both sides are feeling consistent as we're entering Q4. And so that's what we're planning for and working with right now.

我們在促銷策略中試圖做的仍然是為他們提供巨大的價值，但以我們仍然可以提高 AUR 和驅動頻率的方式驅動價值。因此，我們減少了數量型折扣，增加了客流量折扣，以吸引人們進入商店。我們認為，進入第四季時，雙方的兩組趨勢都感覺一致。這就是我們現在正在計劃和合作的。

Olivia Tong, Raymond James.

唐奧立，雷蒙德詹姆斯。

Can you talk about any difference as the quarter progressed, particularly in SBS? And was there any change start of the quarter versus the exit rate?

您能否談談本季的進展有何差異，特別是在 SBS 方面？本季初與退出率相比是否有任何變化？

And then just generally, as we think about fiscal '25, your plans in light of perhaps even more wallet tightness as we go forward? And then following on that, some of the manufacturers in hair appliances, notwithstanding today, have talked about general sentiment in the industry being a little bit more challenging, particularly in the sub-$100 appliance market. I would love to hear your commentary there.

然後，一般來說，當我們考慮 25 財年時，您的計劃是考慮到隨著我們的發展，錢包可能會更加緊張？接下來，儘管今天，一些美髮器具製造商表示該行業的整體情緒更具挑戰性，特別是在 100 美元以下的器具市場。我很想聽聽你的評論。

Absolutely. So I'll start on SBS and what we saw throughout the quarter. We saw a nice momentum and impact of our strategic initiatives to build as we went through the quarter. So marketplaces with our newly launched DoorDash program, Instacart coming online as well, tracked well. Performance marketing, we continue to hone in and be able to drive impact there. So positives that we saw throughout the quarter. We continue to believe those will be positives going into Q4, so feel good about that.

絕對地。我將從 SBS 以及我們整個季度所看到的情況開始。在整個季度中，我們看到了我們所製定的策略舉措的良好勢頭和影響。因此，我們新推出的 DoorDash 程式以及上線的 Instacart 市場都表現良好。效果行銷，我們繼續磨練並能夠在那裡產生影響力。我們整個季度都看到了積極的一面。我們仍然相信這些將在第四季度帶來正面的影響，因此對此感到滿意。

When we look to 2025, clearly, we're not providing guidance on this call today until our November earnings call. But we're confident that the initiatives have us on the right path to get to our low single-digit algorithm. It is a dynamic macro environment, but we're really finding a way to balance our way through and have those strategic initiatives start to be contributing more. So for the full year in 2024, the strategic initiatives, 200 to 300 basis points of benefit, which we feel good about and assuming that the macro continues at the pace that we're seeing today, expect that 2025 will be headed down a good path. So more to come as we get to our November earnings call on that one.

當我們展望 2025 年時，很明顯，我們今天不會在 11 月的財報電話會議之前就這次電話會議提供指導。但我們相信，這些舉措使我們走上了實現低個位數演算法的正確道路。這是一個動態的宏觀環境，但我們確實正在尋找一種方法來平衡我們的方式，並使這些策略舉措開始做出更多貢獻。因此，對於 2024 年全年的戰略舉措，200 至 300 個基點的收益，我們對此感覺良好，並假設宏觀經濟繼續以我們今天看到的速度發展，預計 2025 年將出現良好的下滑小路。當我們召開 11 月的財報電話會議時，還會有更多的內容出現。

And then finally, the hair appliance category. I think it's a dynamic category and that it's one of those places that for most people, it becomes a more discretionary spend if they lean into it a bit more versus the necessary spend when something they have might break.

最後是美髮器具類別。我認為這是一個動態的類別，對於大多數人來說，如果他們更傾向於它，那麼它就會成為一種更可自由支配的支出，而不是當他們擁有的東西可能損壞時的必要支出。

What we've seen is when innovation comes out and we talked about it on our BSG side, John Paul Mitchell came out with a Neuro hair dryer and hair dryer line. We saw a great response to that in Q3 on the BSG side because it really had new innovation that was benefiting the stylists and they were willing to lean in and take advantage and buy that. So we're excited by those types of innovations that we think keep the category moving, but clearly, in an environment where people might have a little bit more inflationary pressure as the performance right now is people primarily buying to need without that catalyst.

我們看到的是，當創新出現時，我們在 BSG 方面對此進行了討論，約翰·保羅·米切爾 (John Paul Mitchell) 推出了 Neuro 吹風機和吹風機系列。我們在第三季度看到 BSG 方面對此做出了很好的反應，因為它確實有讓造型師受益的新創新，他們願意投入並利用併購買它。因此，我們對這些類型的創新感到興奮，我們認為這些創新能夠推動該類別的發展，但顯然，在人們可能面臨更大通膨壓力的環境中，因為目前的表現是人們主要在沒有這種催化劑的情況下購買需要的東西。

Understood. And then just following up on new products. That's obviously been a solid contributor this year. You mentioned the new hair dryer and a lot of new activity on the consumables side. To the extent that you have some insight into the next 12 months, what is the new product pipeline look like to you guys relative to the last 12 months?

明白了。然後就是跟進新產品。這顯然是今年的一個堅實的貢獻者。您提到了新的吹風機和消耗品的許多新活動。如果您對未來 12 個月有一定的了解，那麼相對於過去 12 個月，你們的新產品管道是什麼樣的？

We're feeling good about it. And there continue to be, as we just talked about on our prepared remarks, we just expanded Moroccan Oil into California. So we believe we continue to have distribution gains with some of the brands that we already have.

我們對此感覺良好。正如我們剛剛在準備好的演講中談到的那樣，我們剛剛將摩洛哥石油公司擴展到加州。因此，我們相信我們已經擁有的一些品牌將繼續獲得分銷收益。

And we have a nice pipeline of new products that we do see coming in. Clearly, nothing to share specifically on this call. But feel good that the trajectory is there and the underlying health of the combination of territory expansion, distribution gains, new product on that BSG side really sets us up well to leverage our scale in that business.

我們確實有一系列新產品即將上市。顯然，這次電話會議沒有什麼好具體分享的。但令人高興的是，軌跡已經存在，而且 BSG 方面的領土擴張、分銷收益、新產品組合的潛在健康狀況確實使我們能夠很好地利用我們在該業務中的規模。

Ashley Helgans, Jefferies.

阿什利·赫爾根斯，杰弗里斯。

Congrats on the quarter. Maybe if we can just dive a little deeper in gross margins. I know that you saw some improvement in the Sally Beauty Supply segment due to supply chain efficiencies. I'm just curious any of these efficiencies you can leverage with the BSG segment?

恭喜本季。也許如果我們能進一步提高毛利率的話。我知道由於供應鏈效率的提高，您看到 Sally Beauty Supply 部門取得了一些進展。我只是好奇 BSG 部門可以利用這些效率嗎？

And then you also called out some stabilization in the salons. Just curious like where we are versus historical levels in terms of like appointment frequency and spend.

然後你也呼籲沙龍保持一定的穩定。只是好奇我們在預約頻率和支出方面與歷史水平相比處於什麼位置。

I'll start with the gross margin question. We are seeing some nice gains across both our businesses on our supply chain efforts. And that is part of our Fuel for Growth program and part of our $20 million that we're seeing come through for our target that we had for 2024. So that is across both segments. The difference between Sally and BSG is we're getting an offset to that on the BSG side, mainly from the unfavorable fixed cost absorption that we see, but also from product margin where we see some brand mix putting some pressure on the product margin.

我將從毛利率問題開始。我們看到我們兩家公司在供應鏈方面的努力都取得了一些不錯的成果。這是我們「成長燃料」計畫的一部分，也是我們為實現 2024 年目標而投入的 2,000 萬美元的一部分。這就是跨越兩個細分市場的情況。Sally 和BSG 之間的區別在於，我們正在抵消BSG 方面的影響，主要來自我們看到的不利的固定成本吸收，但也來自產品利潤率，我們看到一些品牌組合對產品利潤率造成了一些壓力。

And then if we think about salon and salon stabilization, I'll go back to the point of we're really pleased with the trajectory of the BSG business and what we have there. We think underlying trends, it's hard to go back and compare to something.

然後，如果我們考慮沙龍和沙龍的穩定性，我會回到我們對 BSG 業務的發展軌跡以及我們所擁有的東西感到非常滿意的觀點。我們認為潛在的趨勢，很難回過頭來與某些東西進行比較。

But what I would say is our stylists are talking about people coming in for regular services a pace that is generally healthy. Where there's a little less health in the industry would be more in the chain salon group. But most of our exposure is to those independent stylists or in smaller salons, so feel good about where we are there. If I related it back, it's probably approaching pre-COVID types of territory in terms of what people see, but we're always conscious of the fact that people will trade up or down as they see fit, but stylists are feeling pretty good that this is a core course of business. So that's what we're building on our assumptions go forward as well and aren't hearing different news.

但我想說的是，我們的造型師正在談論人們定期接受服務的速度總體上是健康的。產業健康度稍差的地方，連鎖沙龍集團的健康度會更高。但我們大部分的接觸都是在那些獨立造型師或較小的沙龍中，所以對我們在那裡的地方感覺良好。如果我把它聯繫起來，就人們所看到的而言，它可能正在接近新冠疫情之前的領域，但我們總是意識到人們會根據自己認為合適的方式上下交易，但造型師感覺很好這是業務的核心課程。因此，這也是我們基於我們的假設而建立的，並且沒有聽到不同的消息。

And at this time, there are no further questions in queue. Please continue with any closing remarks.

此時，隊列中沒有其他問題了。請繼續發表結束語。

Well, I want to thank everyone for joining today. And most importantly, I want to step back and thank our team. Really strong execution from the quarter, great cross-functional collaboration internally is letting us progress dramatically on our strategic initiatives, and I couldn't be more pleased with where we're headed.

嗯，我要感謝大家今天的加入。最重要的是，我想退一步感謝我們的團隊。本季真正強大的執行力、出色的內部跨職能協作讓我們在策略舉措上取得了巨大進展，我對我們的發展方向感到非常滿意。

As always, we appreciate all of our shareholders. We remain committed to long-term profitable growth in getting on our longer-term algorithm as well. And we look forward to updating everyone as we finish our fourth quarter in just a few months. Thanks.

一如既往，我們感謝所有股東。我們仍然致力於採用我們的長期演算法來實現長期獲利成長。我們期待在幾個月後完成第四季時向大家通報最新情況。謝謝。

Thank you. And that does conclude our conference for today. Thank you for your participation and for using AT&T TeleConference. You may now disconnect.

謝謝。我們今天的會議到此結束。感謝您的參與和使用 AT&T TeleConference。您現在可以斷開連線。