Sally Beauty Holdings Inc (SBH) 2025 Q3 法說會逐字稿

Good morning, everyone, and welcome to Sally Beauty Holdings conference call to discuss the company's third-quarter fiscal 2025 results. (Operator Instructions) Now I'd like to turn the call over to Jeff Harkins, Vice President of Investor Relations and Treasurer for Sally Beauty Holdings.

大家早安，歡迎參加 Sally Beauty Holdings 電話會議，討論公司 2025 財年第三季業績。（操作員指示）現在我想將電話轉給 Sally Beauty Holdings 的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, President and Chief Executive Officer; and Marlo Cormier, Chief Financial Officer. Before we begin, I'd 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.

謝謝。大家早安，感謝大家的收看。今天與我一起參加電話會議的還有總裁兼執行長 Denise Paulonis 和財務長 Marlo Cormier。在我們開始之前，我想提醒大家，管理階層在本次電話會議上的評論可能包含《1995 年私人證券訴訟改革法案》所定義的前瞻性陳述。

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 report, annual report on Form 10-K and other filings with the SEC.

由於各種重要因素，實際結果可能與這些前瞻性陳述所示的結果有重大差異，包括我們最近的報告、10-K 表年度報告和向美國證券交易委員會提交的其他文件中「風險因素」部分所討論的因素。

Any forward-looking statements made on this call represent our views only as of today, and we undertake no obligation 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. Now I'd like to turn the call over to Denise to begin the formal remarks.

本次電話會議中所做的任何前瞻性陳述僅代表我們截至今天的觀點，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其調整項目和非公認會計準則財務指標的詳細解釋和對帳。現在我想把電話交給丹尼斯開始正式發言。

Thank you, Jeff, and good morning, everyone. The resilient executional excellence and customer personal inset of our team was on display in the third quarter. In turn, we delivered 13% earnings per share growth amidst the complex macro backdrop. Comparable sales were approximately flat, near the high end of our guidance range and adjusted operating margin of 9.2% exceeded the high end of our expectations.

謝謝你，傑夫，大家早安。我們團隊堅韌的執行力和客戶個人價值在第三季得到了充分展現。反過來，我們在複雜的宏觀背景下實現了每股收益13%的成長。可比銷售額基本持平，接近我們指引範圍的高端，調整後的營業利潤率為 9.2%，超過了我們預期的高端。

In fact, our healthy gross margin profile and prudent cost control, coupled with benefits from our Fuel for Growth initiatives drove a fourth consecutive quarter of operating margin expansion. Additionally, our strong cash flow generation allowed us to strengthen the balance sheet through $21 million of debt repayments and also return value to shareholders via $13 million of share repurchases.

事實上，我們健康的毛利率狀況和審慎的成本控制，加上「成長動力」計畫帶來的好處，推動了營業利潤率連續第四個季度擴大。此外，我們強勁的現金流使我們能夠透過償還 2,100 萬美元的債務來增強資產負債表，並透過回購 1,300 萬美元的股票向股東返還價值。

In our Sally segment, our Color category delivered continued standout performance, growing 4%, with Color customer count up supported by strength in our performance marketing results particularly our do-it-yourself value messaging, expansion of our personalization journeys and consultation growth from our licensed Colors on-demand digital experience. Additionally, momentum continued in our digital marketplace expansion.

在我們的 Sally 細分市場中，我們的 Color 類別繼續表現出色，增長了 4%，Color 客戶數量的增長得益於我們績效營銷結果的強勁增長，特別是我們的 DIY 價值信息傳遞、個性化旅程的擴展以及我們授權的 Colors 按需數位體驗帶來的諮詢增長。此外，我們的數位市場擴張勢頭持續強勁。

Continuing the more cautious spending behavior we saw last quarter, our Sally customers were more [choiceful] in hair care and other ancillary categories with some trade down in price and a focus on value. We are digging even deeper into our customers' needs in these areas and are refining our tactics from personalization and performance marketing to promotions to better serve them.

延續上個季度我們看到的更謹慎的消費行為，我們的 Sally 顧客在護髮和其他輔助類別方面更加[挑剔]，部分顧客降低了價格並註重價值。我們正在更深入地挖掘客戶在這些領域的需求，並正在改進我們的策略，從個人化和績效行銷到促銷，以便更好地為他們服務。

Looking at BSG, sales returned to positive territory as the external factors that impacted stylist appointment books and purchasing behavior in Q2 receded. Of note, BSG has now delivered sales growth in six of the last seven quarters. Key drivers of Q3's top line strength include expanded distribution and robust product innovation across categories and brands.

從 BSG 來看，隨著第二季度影響造型師預約和購買行為的外部因素消退，銷售額恢復到正值。值得注意的是，BSG 在過去七個季度中的六個季度都實現了銷售成長。第三季營收強勁的關鍵驅動因素包括分銷管道的擴大以及跨類別和品牌的強勁產品創新。

While navigating today's dynamic landscape, we're laser-focused on profitability and driving operating efficiencies through our Fuel for Growth program, which is currently in year two. This work encompasses merchandising, sourcing, supply chain, best cost locations and non-trade spend where we have carried out deep dives and are extracting value.

在應對當今動態情勢的同時，我們透過目前已進入第二年的「成長動力」計劃，高度關注獲利能力並提高營運效率。這項工作涵蓋商品銷售、採購、供應鏈、最佳成本地點和非貿易支出，我們對其進行了深入研究並提取了價值。

We remain on track to generate cumulative gross margin and SG&A benefits of approximately $70 million by the end of this fiscal year and expect to capture cumulative run rate savings of $120 million by the end of fiscal 2026. Marlo will provide a more granular look at the program in her remarks.

我們仍有望在本財年末實現約 7,000 萬美元的累計毛利率和銷售、一般及行政費用收益，並預計到 2026 財年末實現 1.2 億美元的累計運行率節省。馬洛將在她的演講中更詳細地介紹該計劃。

Now I'll move to an update on some of the key initiatives under our strategic pillars of enhancing our customer centricity, growing our high margin owned brands and amplifying innovation and increasing the efficiency of our operations. Starting with our marketplace strategy. We are pleased to see strong momentum across our portfolio of partners, which includes DoorDash, Instacart, Uber Eats, Amazon and Walmart.

現在，我將介紹我們策略支柱下的一些關鍵舉措，包括加強以客戶為中心、發展高利潤的自有品牌、擴大創新和提高營運效率。從我們的市場策略開始。我們很高興看到我們的合作夥伴組合呈現強勁勢頭，其中包括 DoorDash、Instacart、Uber Eats、亞馬遜和沃爾瑪。

Our marketplace growth continues to be a key driver of e-commerce sales at Sally US and Canada, which increased 21% over the prior year in fiscal Q3 and comprised 8% of total sales. Our presence on high visibility platforms is attracting new customers to the brand and enabling us to meet the more they shop while driving more profitable sales. We're pleased with how quickly this initiative is scaling and believe there is more growth to come.

我們的市場成長持續成為 Sally 美國和加拿大電子商務銷售的主要驅動力，第三財季銷售額較上年同期成長 21%，佔總銷售額的 8%。我們在高知名度平台上的存在正在吸引新客戶關注我們的品牌，並使我們能夠滿足他們更多的購物需求，同時推動更有利可圖的銷售。我們對這項計劃的快速發展感到高興，並相信未來還會有更大的發展。

Turning now to our licensed Colors on demand initiative. We're continuing to see broad-based strength across the platform with consistent increases in key metrics, including traffic, consultation, average transaction value and purchasing frequency. In Q3, we had more than 90 licensed Colors, averaging over 4,700 consultations per week.

現在轉向我們的授權按需色彩計劃。我們持續看到整個平台的全面實力，流量、諮詢量、平均交易價值和購買頻率等關鍵指標持續成長。在第三季度，我們擁有超過 90 種授權 Colors，平均每週諮詢超過 4,700 次。

Additionally, our LCOD customers had an average transaction value of $35, which is 25% higher than what we see for non-LCOD customers and LCOD customers are averaging one more trip on an annual basis compared to non-LCOD customers. Customer feedback has been overwhelmingly positive and retention rates are significantly higher than non-LCOD customers.

此外，我們的 LCOD 客戶的平均交易價值為 35 美元，比非 LCOD 客戶高出 25%，而且與非 LCOD 客戶相比，LCOD 客戶每年平均多出行一次。客戶回饋非常積極，保留率明顯高於非 LCOD 客戶。

When we initially launched this platform, they gained traction quickly and has proven to be a powerful tool for broadening our reach, attracting new customers to Sally and deepening our strategic moat and professional Color for home use.

當我們最初推出這個平台時，它們迅速獲得了關注，並已被證明是擴大我們的覆蓋範圍、吸引新客戶到 Sally 以及深化我們的戰略護城河和家庭使用的專業色彩的有力工具。

Moving to innovation, which remains a cornerstone of our operating and growth strategies. In both segments of our business, we are proud to have built a reputation for bringing our customers a consistent pipeline of on-trend innovation, relevant brands and exclusive launches. In the Sally segment, we saw strong performance from many of our own brands in Q3, including ion, Bondbar, Inspired by Nature and Strawberry Leopard.

轉向創新，這仍然是我們營運和成長策略的基石。在我們業務的兩個領域中，我們都因能夠持續為客戶帶來潮流創新、相關品牌和獨家產品而建立了良好的聲譽，對此我們深感自豪。在 Sally 領域，我們看到許多自有品牌在第三季表現強勁，包括 ion、Bondbar、Inspired by Nature 和 Strawberry Leopard。

In June, we doubled down on the nail category with a significantly expanded assortment focused on trend-driven innovation, including brands like Nailboo, KISS and Dashing Diva. We view nail as an important growth category for Sally, one that has become a leading discovery channel for new Sally customers and furthers our position as a leading destination for shoppers seeking trends, value and convenience.

6 月份，我們在美甲類別上加倍投入，大幅擴展了以潮流驅動創新為重點的美甲產品系列，包括 Nailboo、KISS 和 Dashing Diva 等品牌。我們認為美甲是 Sally 的一個重要成長類別，它已成為 Sally 新客戶的主要發現管道，並進一步鞏固了我們作為尋求潮流、價值和便利的購物者的領先目的地的地位。

At BSG, recent launches continue to perform well across color and care. This includes the successful and much anticipated April launch of K18 as well as [guidance] maintenance of brand-driven biotech. Additionally, [Araceli] embraced newness and expanded distribution from Color Wow, Image, Morrocan Oil, Schwarzkopf and Wella. Innovation continued as we enter Q4 with the launch of the cruelty-free brand, Unite in 800 CosmoProf stores, our full-service channel and e-commerce.

在 BSG，最近推出的產品在顏色和護理方面繼續表現良好。其中包括 4 月成功推出且備受期待的 K18 以及品牌驅動生物技術的 [指導] 維護。此外，[Araceli] 還吸收了 Color Wow、Image、Morrocan Oil、Schwarzkopf 和 Wella 等公司的新產品，並擴大了分銷範圍。進入第四季度，我們繼續創新，在 800 家 CosmoProf 商店、我們的全方位服務管道和電子商務中推出了無殘忍品牌 Unite。

Unite includes hair mask, styling and detangler products. I'm pleased to note that our core strategic pillars are continuing to drive sales and engagement. The combination of marketplaces, licensed colors on demand and innovation as well as personalization and enhanced performance marketing contributed approximately 290 basis points of comp sales growth in the third quarter and 250 points year-to-date.

Unite 包括髮膜、造型和順髮產品。我很高興地註意到，我們的核心策略支柱正在繼續推動銷售和參與。市場、按需授權色彩和創新以及個人化和增強績效行銷的結合，在第三季度貢獻了約 290 個基點的銷售額成長，年初至今貢獻了 250 個基點的銷售額成長。

Now I'll turn to our longer-term initiatives. Starting with our Sally brand refresh, which is designed to pivot Sally Beauty from a beauty supply house to a modernized specialty beauty retailer. As of July 31, we have completed the refresh in a total of 20 locations, which includes 18 stores in Orlando, 1 in Ohio and 1 in Minnesota. We expect to complete another 15 stores across the US during our fourth quarter, resulting in approximately 35 stores updated by the end of our fiscal year.

現在我將談談我們的長期舉措。從我們的 Sally 品牌更新開始，旨在將 Sally Beauty 從一家美容用品公司轉變為現代化的專業美容零售商。截至 7 月 31 日，我們已在總共 20 個地點完成了更新，其中包括奧蘭多的 18 家店、俄亥俄州的 1 家店和明尼蘇達州的 1 家店。我們預計在第四季在美國完成另外 15 家門市的開業，到本財年末將有大約 35 家門市完成更新。

In these refresh locations, we're prioritizing the customer journey and operational execution to deliver a superior in-store experience one that encourages discovery, inspires and engages. We're also testing expanded categories such as nails and cosmetics, along with adjacencies such as fragrance by creating additional space through SKU count rationalization. To date, we see customers spending more time in store and cross-shopping categories at an increased rate as evidenced by basket growth coming from nails, cosmetics and skin care.

在這些煥然一新的地點，我們優先考慮客戶旅程和營運執行，以提供卓越的店內體驗，鼓勵探索、激發靈感並吸引顧客。我們也正在測試指甲和化妝品等擴展類別以及香水等相鄰類別，透過 SKU 數量合理化創造更多空間。到目前為止，我們發現顧客在商店中花費的時間越來越多，跨類別購物的速度也越來越快，指甲、化妝品和皮膚護理產品的購物籃增長就是明證。

Additionally, we're seeing key indicators, including units per transaction, average unit retail and average transaction value, all trending above the rest of the fleet. In short, the new look, feel, navigation and merchandising strategies are driving the desired results.

此外，我們看到關鍵指標，包括每筆交易的單位數、平均單位零售額和平均交易價值，都高於其他車隊。簡而言之，新的外觀、感覺、導航和行銷策略正在推動預期的結果。

Importantly, in mid-July, we kicked off our Orlando marketing initiatives, which includes billboards, paid social, paid search, YouTube and CRM. This is a planned incremental marketing investment, spreading the word on our transformed Sally experience to drive traffic and new customer acquisition. For a look at how the store refreshes are taking shape, please visit our IR website where we posted a short video.

重要的是，7 月中旬，我們啟動了奧蘭多行銷計劃，其中包括廣告看板、付費社交、付費搜尋、YouTube 和 CRM。這是一項有計劃的增量行銷投資，旨在宣傳我們轉型後的 Sally 體驗，以推動流量和吸引新客戶。要了解商店更新的進展情況，請訪問我們的 IR 網站，我們在那裡發布了一段簡短的影片。

Looking ahead to fiscal 2026. We expect to complete another 50 refreshes all recurring in stores that were previously slated for update or relocations. Therefore, we don't anticipate a material deviation to our historical CapEx levels. We're moving forward at a measured pace to ensure we're positioned to generate meaningful returns and continue to have conviction in the opportunity to refresh up to 1,500 stores or approximately two-thirds of the Sally US fleet. We believe the refresh has the potential to be an important contributor to driving consistent top line growth and look forward to advancing the strategy over the coming quarters.

展望2026財年。我們預計將完成另外 50 次更新，這些更新均在先前計劃更新或搬遷的商店中重複進行。因此，我們預計我們的歷史資本支出水準不會有重大偏差。我們正以穩健的步伐向前邁進，以確保我們能夠產生有意義的回報，並繼續堅信有機會更新多達 1,500 家門市，即 Sally US 門市總數的約三分之二。我們相信，此次更新有可能成為推動持續收入成長的重要因素，並期待在未來幾季推進該策略。

Shifting now to our Happy media initiatives. We continue to see some nice trends in our Happy Beauty stores, especially in our mall stores where there's natural traffic. We are still testing and learning on this concept and are leaning into Happy Beauty as an Indi brand headquarters with a focus on key trends such as Korean beauty and fragrance stories. Additionally, our marketing message is focused on highlighting on-trend brands, offering tests before you buy and utilizing influencer partnerships and social media to drive traffic and conversion.

現在轉向我們的快樂媒體計劃。我們繼續看到 Happy Beauty 商店的一些良好趨勢，特別是在擁有自然客流量的購物中心商店。我們仍在測試和學習這一概念，並傾向於將 Happy Beauty 作為印度品牌總部，重點關注韓國美容和香水故事等關鍵趨勢。此外，我們的行銷訊息專注於突出流行品牌、在購買前提供測試以及利用有影響力的合作夥伴關係和社交媒體來推動流量和轉換。

We're pleased to be entering the final stretch of our fiscal year on a strong note. We're raising our full year adjusted operating margin guidance to reflect the strength of Q3 and our confidence in the company's strong market positioning, durable operating model and long-term growth potential as we continue to advance our strategic pillars. We appreciate the support of our shareholders and remain committed to building long-term value for all of our stakeholders.

我們很高興能夠以強勁的勢頭進入財政年度的最後階段。我們上調了全年調整後營業利潤率預期，以反映第三季的強勁表現以及我們對公司強大的市場定位、持久的營運模式和長期成長潛力的信心，同時我們將繼續推進我們的策略支柱。我們感謝股東的支持，並將繼續致力於為所有利害關係人創造長期價值。

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

現在我將把電話轉給馬洛來討論財務問題。

Thank you, Denise, and good morning, everyone. Our third quarter financial results are a testament to the actions we have undertaken through our Fuel for Growth program. While comparable sales came in roughly flat but improved from our second quarter, our Fuel for Growth initiative drove strong gross margins and enabled us to hold SG&A expenses relatively flat to the prior year for both our third quarter and fiscal year-to-date. These positive benefits were instrumental in delivering bottom line performance above our guidance range, which drove continued strong cash flow generation.

謝謝你，丹尼斯，大家早安。我們的第三季財務表現證明了我們透過「成長動力」計畫所採取的行動。雖然可比銷售額與第二季度基本持平但有所提高，但我們的「成長動力」計畫推動了強勁的毛利率，並使我們能夠將第三季和財年迄今為止的銷售、一般及行政費用與上年持平。這些正面的效益有助於實現超出我們指導範圍的底線業績，從而推動持續強勁的現金流產生。

Turning to the numbers. Third quarter consolidated net sales of $933 million represented a decrease of 1%, while operating 35 fewer stores compared to the prior year. Consolidated comparable sales declined less than 0.5 points. While macro uncertainty continue to impact spending among our Sally Beauty customers, which was partially offset by strong growth in hair colors and digital marketplaces. We are pleased to see a strengthening top line trends and return to positive comparable sales at DSG driven by expanded distribution and new brand innovation.

轉向數字。第三季綜合淨銷售額為 9.33 億美元，較前一年下降 1%，同時經營的門市數量減少 35 家。合併可比銷售額下降不到0.5個百分點。儘管宏觀不確定性繼續影響我們 Sally Beauty 客戶的支出，但染髮劑和數位市場的強勁成長部分抵消了這一影響。我們很高興看到，在分銷擴大和新品牌創新的推動下，DSG 的營收趨勢不斷加強，可比銷售額恢復正成長。

Global e-commerce sales increased 8% to $99 million and represented 11% of total net sales. We continue to deliver a strong gross margin profile in Q3, with adjusted gross margin expanding 100 basis points to 52%. The year-over-year improvement is primarily attributable to our Sally Beauty segment, which delivered higher product margins driven by our Fuel for Growth initiatives and also benefited from lower distribution and freight costs versus a year ago. As well as reduced trade expense. As we communicated last quarter, we expect to maintain our healthy gross margin profile amidst the changing tariff landscape, especially given our limited exposure.

全球電子商務銷售額成長 8%，達到 9,900 萬美元，佔總淨銷售額的 11%。我們在第三季繼續保持強勁的毛利率，調整後的毛利率擴大 100 個基點至 52%。同比成長主要歸功於我們的莎莉美容部門，該部門在我們的「成長動力」計畫的推動下實現了更高的產品利潤率，並且與去年同期相比，分銷和運費成本也降低了。以及降低貿易費用。正如我們上個季度所傳達的那樣，我們預計在不斷變化的關稅格局中仍能保持健康的毛利率狀況，特別是考慮到我們的風險敞口有限。

We expect to largely offset potential cost of goods impact through cost sharing with vendors, modest price increases on select products and sourcing optimization. Looking at expenses. Q3 adjusted SG&A totaled $399 million. That's up just $2 million for last year, reflecting higher labor and IT costs partially offset by $6 million in Fuel for Growth benefits and lower depreciation expense.

我們期望透過與供應商分攤成本、適度提高部分產品的價格以及優化採購來在很大程度上抵消潛在的商品成本影響。查看費用。第三季調整後的銷售、一般及行政費用總計 3.99 億美元。這比去年僅增加了 200 萬美元，反映了勞動力和 IT 成本的增加，但被 600 萬美元的成長動力福利和較低的折舊費用部分抵消。

In total, we captured an incremental $12 million of pretax Fuel for Growth benefits to both gross margin and SG&A in Q3, enabling us to deliver $31 million in pretax benefits year-to-date. This leaves us on pace to capture $40 million to $45 million of savings in full year of fiscal 2025 after generating $28 million in savings in fiscal 2024. This keeps us on track to deliver cumulative savings of approximately $70 million since we initiated the program in fiscal 2024.

總體而言，我們在第三季度獲得了 1200 萬美元的稅前「成長動力」收益，這增加了毛利率和銷售、一般及行政費用，使我們能夠在年初至今實現 3,100 萬美元的稅前收益。這使得我們在 2024 財年節省 2,800 萬美元後，預計在 2025 財年全年節省 4,000 萬至 4,500 萬美元。自 2024 財年啟動該計劃以來，這使我們有望實現累積節省約 7,000 萬美元的目標。

To summarize the program details, the $70 million in cumulative savings over 2024 and 2025 is comprised of two buckets: gross margin and SG&A. Gross margin benefits totaled about $30 million coming from the optimization of our supply chain in the partnerships and promotional efficiencies. SG&A benefits totaled about $40 million coming from transportation efficiencies, outsourcing and reductions in non-trade spend.

總結該計劃的細節，2024 年和 2025 年累計節省的 7,000 萬美元包括兩個部分：毛利率和銷售、一般及行政費用 (SG&A)。透過優化合作夥伴關係和促銷效率的供應鏈，我們的毛利率收益總計約為 3,000 萬美元。銷售、一般及行政費用收益總計約 4,000 萬美元，來自運輸效率、外包和非貿易支出的減少。

Of the $70 million in cumulative benefits over fiscal year 2024 and 2025, approximately $30 million will have been reinvested in the business to support our strategic initiatives, including marketplaces, licensed color on demand, our Sally brand refresh and Happy Beauty companies as well as advertising and IT capabilities. The remaining $40 million will flow to the bottom line as profit or to offset inflation.

在 2024 財年和 2025 財年的 7,000 萬美元累積收益中，約有 3,000 萬美元將重新投資於業務，以支援我們的策略計劃，包括市場、按需授權色彩、我們的 Sally 品牌更新和 Happy Beauty 公司以及廣告和 IT 能力。剩餘的 4000 萬美元將作為利潤流入底線或用於抵消通貨膨脹。

We anticipate delivering an additional $50 million in run rate savings in fiscal 2026 with about two-thirds coming from gross margin and one-third from SG&A. By the end of fiscal 2026, we expect that our cumulative run rate savings will be approximately $120 million. Returning to the P&L. We're pleased to report that bottom line results exceeding our expectations, driven by both gross margin expansion and cost reduction. Additionally, we delivered an increase in both adjusted operating income dollars and adjusted operating margin rate over the prior year.

我們預計 2026 財年將額外節省 5,000 萬美元的營運率，其中約三分之二來自毛利率，三分之一來自銷售、一般及行政費用 (SG&A)。到 2026 財年末，我們預計累計營運成本節省將達到約 1.2 億美元。回到損益表。我們很高興地報告，由於毛利率擴大和成本降低，最終結果超出了我們的預期。此外，我們的調整後營業收入和調整後營業利潤率均比前一年增加。

Adjusted operating margins were 9.2%, representing an increase of 30 basis points over the prior year. Adjusted diluted earnings per share was $0.51, a 13% increase over the prior year with debt reduction and share repurchases, complementing the positive impact of our operating results. With these Q3 results, year-to-date, our adjusted operating profit is up 6%, with 60 basis points of margin expansion and 13% earnings per share growth.

調整後的營業利益率為 9.2%，比上年增加 30 個基點。調整後每股攤薄收益為 0.51 美元，較上年增長 13%，得益於債務減少和股票回購，補充了我們經營業績的正面影響。根據第三季的業績，今年迄今為止，我們的調整後營業利潤成長了 6%，利潤率擴大了 60 個基點，每股收益成長了 13%。

Moving to segment results. Sally Beauty net sales decreased 1.8% to $527 million on 32 fewer stores versus a year ago with comparable sales down 1.1%. Comparable transactions declined 1%, while average ticket was approximately flat. For the Global Sally segment, Color increased 4%, while Care declined 7% compared to the prior year. Sally e-commerce sales grew 15% to $43 million and represented 8% of segment net sales for the quarter. In addition, e-commerce sales for Sally US and Canada grew by 21%, primarily driven by the strength of our digital marketplace strategies.

轉向細分結果。與去年同期相比，莎莉美容淨銷售額下降 1.8% 至 5.27 億美元，門市減少 32 家，可比銷售額下降 1.1%。可比交易量下降了 1%，而平均票價基本上持平。就全球莎莉部門而言，與前一年相比，彩妝增加了 4%，而護理產品則下降了 7%。Sally 電子商務銷售額成長 15%，達到 4,300 萬美元，佔本季部門淨銷售額的 8%。此外，Sally 美國和加拿大的電子商務銷售額成長了 21%，這主要得益於我們強勁的數位市場策略。

Gross margin in our Sally segment increased 110 basis points to 60.9%. The year-over-year improvement primarily reflects Fuel for growth benefits, lower distribution and freight costs and lower shrink expense. Segment operating margins came in at 15.8%, down 40 basis points to last year.

我們的 Sally 部門毛利率增加了 110 個基點，達到 60.9%。年比成長主要反映了燃料成長效益、分銷和貨運成本降低以及損耗費用降低。分部營業利益率為 15.8%，較去年下降 40 個基點。

Looking at the BSG segment, net sales were approximately flat at $407 million and comparable sales increased by 0.5 points. Comparable transactions were up 6%, while average ticket was down 5%. From a category perspective, Color was up 3% and Care was approximately flat. BSG e-commerce sales were $56 million, representing 14% of segment net sales for the quarter.

縱觀 BSG 部門，淨銷售額大致持平於 4.07 億美元，可比銷售額增加了 0.5 個百分點。可比交易量上漲了 6%，而平均票價卻下降了 5%。從類別角度來看，彩色產品上漲了 3%，護理產品基本上持平。BSG 電子商務銷售額為 5,600 萬美元，佔本季分部淨銷售額的 14%。

Gross margin at BSG was 39.4%, flat compared to prior year, primarily reflecting lower distribution and freight costs, offset by product margins due to brand mix. Segment operating margin was strong, coming in at 12.5%, up 100 basis points to the prior year.

BSG 的毛利率為 39.4%，與去年持平，主要反映了分銷和運費成本的下降，但被品牌組合帶來的產品利潤率所抵消。該部門營業利潤率強勁，達 12.5%，比上年上升 100 個基點。

Turning to the balance sheet and cash flow. We ended the quarter with strong financial condition with $113 million of cash and cash equivalents and no outstanding borrowings under our asset-based revolving line of credit. Inventory levels were approximately $1 billion, down 2% to last year, with units down 5%, equating to a half week of reduction in weeks of supply.

轉向資產負債表和現金流。本季結束時，我們的財務狀況良好，擁有 1.13 億美元的現金和現金等價物，且資產循環信貸額度下沒有未償還借款。庫存水準約為 10 億美元，比去年下降 2%，單位下降 5%，相當於供應週數減少了半週。

As we continue to focus on driving efficiency across the business, on top of the great work our teams have already done, we believe there is additional opportunity for process improvement around inventory turns. This include a deeper dive at the SKU level aimed at enhancing inventory productivity, which we believe will create incremental cash flow on top of our existing strong free cash flow profile. More to come on that as we enter fiscal 2026.

隨著我們繼續專注於提高整個業務的效率，除了我們的團隊已經完成的出色工作之外，我們相信在庫存週轉方面還有更多的流程改進機會。這包括在 SKU 層面進行更深入的研究，旨在提高庫存生產力，我們相信這將在我們現有強勁的自由現金流狀況的基礎上創造增量現金流。隨著我們進入 2026 財年，我們將迎來更多相關消息。

The business continues to be a strong and steady cash flow generator, providing us with the ability to consistently return value to shareholders. Third quarter cash flow from operations totaled $69 million, while operating free cash flow totaled $49 million. We utilized excess cash to repay $21 million of term loan debt, bringing our net debt leverage ratio down to 1.7 times.

該業務繼續成為強勁而穩定的現金流產生器，使我們能夠持續為股東帶來價值回報。第三季經營活動現金流總計 6,900 萬美元，經營活動自由現金流總計 4,900 萬美元。我們利用多餘的現金償還了 2,100 萬美元的定期貸款債務，使我們的淨債務槓桿率降至 1.7 倍。

We also deployed $13 million of cash to repurchase 1.5 million shares of stock under our existing share repurchase program. Entering the final quarter of the year, we remain on track to generate $180 million to $200 million of free cash flow for the full year. Additionally, we expect to repurchase approximately $20 million of our stock and repay approximately $20 million of debt during our fourth quarter.

我們也根據現有的股票回購計畫動用了 1,300 萬美元現金回購了 150 萬股股票。進入今年最後一個季度，我們仍有望在全年產生 1.8 億至 2 億美元的自由現金流。此外，我們預計將在第四季回購約 2,000 萬美元的股票並償還約 2,000 萬美元的債務。

Turning now to guidance. We are pleased with the consistent profit growth our business has generated over the last four quarters and believe there are additional opportunities ahead. As we continue to focus on our core strategic pillars of enhancing our customer centricity, growing our high-margin owned brands and amplifying innovation and increasing the efficiency of our operations.

現在轉向指導。我們對過去四個季度業務持續的利潤成長感到滿意，並相信未來還會有更多的機會。我們將繼續專注於我們的核心策略支柱，即增強以客戶為中心、發展高利潤的自有品牌、擴大創新並提高營運效率。

Based on our current business trends, we are adjusting our full year comparable sales outlook to the high end of our previous range and raising our full year adjusted operating margin guidance as follows: Comparable sales are expected to be approximately flat compared to our prior range of flat to down 1%.

根據我們目前的業務趨勢，我們將全年可比銷售額預期調整至之前範圍的高端，並將全年調整後的營業利潤率預期上調如下：預計可比銷售額將與之前的持平至下降 1% 的範圍大致持平。

Consolidated net sales are expected to be approximately 75 basis points lower than comparable sales. This reflects the expected unfavorable impact from foreign exchange rates on full year net sales and approximately 30 fewer stores in operation compared to the prior year.

預計合併淨銷售額將比可比銷售額低約 75 個基點。這反映了外匯匯率對全年淨銷售額的不利影響，與前一年相比，營運中的門市數量減少了約 30 家。

Adjusted operating margin is expected to be in the range of 8.6% to 8.7% compared to our prior expectation of 8% to 8.5%. This implies that our Q4 adjusted operating margin will be down modestly versus prior year, which reflects a planned step-up in marketing investment to support our Sally brand refresh in Orlando.

調整後的營業利潤率預計在 8.6% 至 8.7% 之間，而我們先前預期為 8% 至 8.5%。這意味著我們第四季度的調整後營業利潤率將比去年同期略有下降，這反映了我們計劃增加行銷投資以支持我們在奧蘭多的 Sally 品牌更新。

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

感謝您今天上午抽出時間。現在我請接線生開始問答環節。

(Operator Instructions)

（操作員指示）

Oliver Chen, TD Cowen.

奧利弗·陳（Oliver Chen），TD Cowen。

Hi, Denise, Marlo. I would love your thoughts on macros and how they may be impacting the Sally Beauty division differently from BSG. You had a really nice transaction momentum at BSG, but it was a little softer at Sally. So I would love thoughts there. And then the store refreshes and renovation sound quite compelling. What's stopping you from going faster in that discipline as well? Thank you.

你好，丹尼斯，馬洛。我很想了解您對巨集的看法，以及它們對 Sally Beauty 部門和 BSG 的影響有何不同。您在 BSG 的交易勢頭非常好，但在 Sally 的交易勢頭則稍微弱一些。所以我很願意去思考這個問題。那麼商店的更新和改造聽起來就相當引人注目。是什麼阻礙了你在該專案上取得更快的進步？謝謝。

Good morning, Oliver. We were really pleased with our results in the quarter. And as you mentioned, macro is certainly a factor, but we think it wasn't as big of a factor as it could have been as we were thinking about the business as we exited Q2. So the strength in Sally really came in the color side of the business, which was up 4% in the quarter.

早上好，奧利佛。我們對本季的業績非常滿意。正如您所提到的，宏觀因素當然是一個因素，但我們認為，當我們在第二季結束時考慮業務時，它並不是一個很大的因素。因此，Sally 的優勢實際上體現在色彩業務上，該業務本季成長了 4%。

Where we saw a bit more softness in that business was in the Care space consistent with Q2, where we have the macro weighing in, is this is an area where a customer can do a modest trade down, look a bit more for value than they might do in the distinctiveness of our pro color for home use side of the business.

我們發現，與第二季度一致的是護理產品領域的業務表現略顯疲軟，我們對此進行了宏觀權衡，認為在這一領域，客戶可以進行適度降價，比起我們業務中針對家庭使用的專業色彩的獨特性，他們更注重價值。

So that's where we saw a bit of the softness. We're very focused on the Sally side of the house in terms of understanding what the consumer is looking for in that space and navigating what we can do to improve that business, whether that be through our marketing messaging, our promotional activity, things that can compel our customer to shop back in that space.

這就是我們看到的一些疲軟之處。我們非常注重 Sally 方面，了解消費者在該領域的需求，並探索如何改善該業務，無論是透過我們的行銷訊息、促銷活動，還是其他可以吸引客戶再次在該領域購物的東西。

On the BSG front, we were very pleased to see the rebound to positive comps driven by Color, but with nice business in Care as well. The transactions were up. We continue to see our stylist shopping closer to need, so while our transactions were up, ticket was down a bit as they kept getting what they needed when they needed it.

在 BSG 方面，我們很高興看到在 Color 的推動下業績反彈，同時護理業務也表現良好。交易量上升。我們繼續看到我們的造型師在更接近需要的時候購物，因此雖然我們的交易量上升了，但票價卻有所下降，因為他們總是在需要的時候得到他們需要的東西。

But we were pleased to hear from our stylists in the quarter, but they're feeling overall optimistic about their businesses. Where the only point of softness to them is the actual trend right now is to a bit more natural lower maintenance hair color, which perhaps stretches the time between services a bit more than something that might be a high maintenance color

但我們很高興聽到本季造型師的消息，他們對自己的業務整體感到樂觀。對他們來說，唯一的柔軟點是現在的實際趨勢，即更自然、更易於維護的髮色，這也許會比需要高維護的顏色更延長兩次染髮之間的間隔時間。

But seeing the stylist rebound after the flu and weather impact in Q2 was great for us to see. So overall, pleased with the performance of both businesses in the quarter and looking forward to that momentum continuing. Your second question was on brand refresh. Why aren't we moving faster?

但我們很高興看到造型師在第二季度受到流感和天氣影響後有所反彈。總體而言，我們對本季兩家公司的表現感到滿意，並期待這種勢頭繼續下去。您的第二個問題是關於品牌更新。我們為什麼沒有加快腳步？

What I would say is we are still in the early days right? We need with Orlando and 18 stores now working. We need more time to really understand the list because all those stores went through some form of transformation. So the traffic patterns and overall transactions is a piece that is a bit disrupted.

我想說的是，我們還處於早期階段，對嗎？我們需要與奧蘭多和現在的 18 家商店合作。我們需要更多時間來真正了解這份名單，因為所有這些商店都經歷了某種形式的轉型。因此，交通模式和整體交易有點受到干擾。

But we really like what we're seeing behind that with the initial tranche of the stores being UPT, AUR, ATV, all in the direction that we want, with a mix in the basket that includes more things like nail, fragrance, cosmetics, skin care, the things that we're really trying to test into as we mature the work that we're doing.

但我們真的很喜歡我們看到的幕後情況，商店的初始部分是 UPT、AUR、ATV，都朝著我們想要的方向發展，籃子裡還有更多的東西，例如指甲、香水、化妝品、皮膚護理，這些都是我們在工作成熟時真正想要測試的東西。

So what we are pleased about is moving forward with a plan for another 50 stores in FY26, great news is that we've already been built into our CapEx to be touching about that many stores, so that's not an incremental cost but will let us keep understanding the performance trends and being able to watch traffic and transactions. I feel great that by the end of fiscal '26, we'll have close to 100 stores out there that will be working in our new model and then be able to adjust from there.

因此，我們很高興看到我們在 2026 財年繼續推進開設另外 50 家門市的計劃，好消息是，我們已經將開設這麼多門市納入了資本支出中，因此這不是增量成本，但可以讓我們繼續了解業績趨勢，並能夠觀察客流量和交易情況。我很高興，到 26 財年末，我們將有近 100 家商店採用我們的新模式，然後能夠從那裡進行調整。

And the final piece that we're working on in this quarter, as I spoke about in my prepared remarks is we are really amping up the marketing efforts in Orlando to be sure that for a market that has been fully redone. The customer knows we're out there, both our existing customer and our new customer about the new Sally and what you can expect to experience and why you should come back in to visit us. So all in all, pleased with the progress, looking forward to doing more in '26, and we'll continue at a good, measured pace as we understand the return on the investment.

正如我在準備好的演講中提到的那樣，我們本季要做的最後一件事是，我們正在加大奧蘭多的行銷力度，以確保這個市場已經完全重建。顧客知道我們就在那裡，無論是我們的現有顧客還是新顧客，他們都知道新款 Sally 的魅力，知道您能期待什麼樣的體驗，知道為什麼您應該再次光臨我們。總而言之，我們對進展感到滿意，期待在 26 年取得更多進展，隨著我們了解投資回報，我們將繼續保持良好、有節奏的步伐。

Thank you. Just a follow-up on color. What do you think key catalysts are for color going forward? Do you expect that momentum to continue, and it's impressive that the marketplace has been kicking in as well. And then finally, on the Sally division, you had nice gross margins on fuel for growth as well as freight and other. How are you balancing that gross margin profile relative to trying to drive consistent positive traffic at Sally division. Thanks a lot.

謝謝。只是對顏色的後續關注。您認為未來色彩發展的關鍵催化劑是什麼？您是否預計這種勢頭會持續下去？令人印象深刻的是，市場也已經開始復甦。最後，在 Sally 部門，你們在燃料成長以及貨運和其他方面都獲得了不錯的毛利率。您如何平衡毛利率狀況並努力推動 Sally 部門持續的正向流量？多謝。

Sure. On the Color front, at Sally, we're seeing strength in great coverage. We're also seeing strength in it it's ticked up a bit over the last couple of months is a bit of a resurgence into that bright side of the world. But we're also seeing great support from our brand partners. So it's in the Vivid world, Manic Panic, iroiro are all nice performers on that Sally side in addition to our own brands with Bondbar and ion and Inspired by Nature, being big contributors.

當然。在色彩方面，我們看到了 Sally 出色的覆蓋範圍。我們也看到了它的力量，在過去的幾個月裡它有所上升，這是世界光明一面的復甦。但我們也看到了品牌合作夥伴的大力支持。因此，在 Vivid 世界中，Manic Panic、iroiro 都是 Sally 方面的優秀表演者，此外，我們自己的品牌 Bondbar、ion 和 Inspired by Nature 也是重要的貢獻者。

With marketplaces, we're also seeing nice growth on the Sally side which is supporting Color as well. License colors on demand, combined with marketplaces are bringing new customers in and our Color customer count is up. And so performance marketing working combined with multiple channels for the customer to be able to shop, we feel good about.

在市場方面，我們也看到 Sally 方面取得了良好的成長，它也支援 Color。按需許可顏色，結合市場，正在吸引新客戶，我們的顏色客戶數量也在增加。因此，績效行銷與多種管道結合，讓顧客能夠購物，這讓我們感到很滿意。

And on the BSG side, we think we just have a great portfolio of brands that are -- that our customers really responding well to in the world of Color, and we expect that, that trend will continue. So we feel really strong and great about that as well. I'll let Marlo comment a bit on the Sally gross margin and how we're feeling about that side of the house.

在 BSG 方面，我們認為我們擁有一系列優秀的品牌——我們的客戶在色彩領域對這些品牌的反應非常好，我們預計這種趨勢將會持續下去。因此，我們對此也感到非常高興和強大。我會讓馬洛對莎莉的毛利率以及我們對房子那邊的感受發表一些評論。

Yeah. On the gross margin front in terms of Sally, very pleased with the performance there. I'm getting the planned and tractive benefits from our Fuel for Growth effort in terms of how we're redeploying that to drive that competitive traffic, it's really our marketing efforts, our CRM, our personalization and bringing innovation. So I feel very good about continuing to maintain that profile. As well as the traffic driving activities that we have that we're deploying going forward.

是的。就毛利率方面而言，Sally 對業績非常滿意。就我們如何重新部署「成長動力」計畫來推動競爭流量而言，我從中獲得了有計劃的、具有吸引力的好處，這實際上是我們的行銷努力、我們的 CRM、我們的個人化和創新。因此我很高興能夠繼續保持這一形象。以及我們正在部署的交通驅動活動。

Thank you. Best regards.

謝謝。此致。

Susan Anderson, Canaccord Genuity.

蘇珊安德森（Susan Anderson），Canaccord Genuity。

Hi. Good morning. Thanks for taking my question. I was curious just on the Sally Beauty store that looks like there was an acceleration of store closures in the quarter. I guess, how should we think about the store plans going forward? And how are recently renovated stores performing as well versus the rest of the fleet? Thanks.

你好。早安.感謝您回答我的問題。我對 Sally Beauty 商店感到好奇，該商店在本季似乎加速關閉。我想，我們應該如何考慮未來的商店計劃？與其他店鋪相比，最近裝修的店鋪表現如何？謝謝。

Yeah. Good morning, Susan. On the Sally store front, the Sally Beauty segment includes our businesses Mexico and Europe, in addition to our US and Canada businesses. The slight uptick in store closures in the quarter was actually tied to our European business where we actually exited our store base in Spain. So there were 19 closures tied to that exit. We actually sold that business to a competitor.

是的。早安，蘇珊。在 Sally 店面，Sally Beauty 部門除了美國和加拿大業務外，還包括我們的墨西哥和歐洲業務。本季門市關閉數量略有增加實際上與我們的歐洲業務有關，我們實際上退出了位於西班牙的門市基地。因此，與此出口相關的關閉次數為 19 次。我們實際上將該業務出售給了競爭對手。

As we look to focus where we think we can drive the most growth in our European operations, so pretty immaterial to the total set of Sally financials, whether that be sales and operating profit, but an important strategic move as we look to strengthen Europe and drive growth. So that's what really drove the store closures there. No outside trends in the US. And when we think about how stores are performing, overall as we are doing refreshes and relocations, they really are about targeting the customers where we want to be.

由於我們將重點放在我們認為能夠推動歐洲業務最大成長的地方，因此對於 Sally 的整體財務狀況而言，無論是銷售額還是營業利潤，這都無關緊要，但對於我們尋求加強歐洲和推動成長而言，這是一個重要的戰略舉措。這就是導致那裡的商店關閉的真正原因。美國沒有外部趨勢。當我們考慮商店的經營狀況時，總的來說，當我們進行更新和搬遷時，它們實際上是為了瞄準我們想要的客戶。

So we've seen nice performance as I mentioned earlier, for the stores that we're doing as part of the brand refresh program, we're still in the early days. So love what we're seeing in the in-store metrics and more to come as those things mature and we can read the sales longer term.

正如我之前提到的，我們已經看到了良好的表現，對於我們作為品牌更新計劃的一部分所做的商店來說，我們仍處於早期階段。因此，我們很喜歡在店內指標中看到的內容，隨著這些指標的成熟，我們能夠讀取更長期的銷售情況，未來還會有更多內容。

Okay. Great. Thanks. And then maybe if you could just talk about, I guess, the consumer behavior you've seen between, I guess, the two formats. Are you seeing any pullback or does it feel like consumers are maybe doing their hair a little bit more at home, which is helping solid beauty just given some fears, I guess, around higher prices and tariffs, I guess just curious if you've seen any pullback there. Thanks.

好的。偉大的。謝謝。然後，我想，您能否談談您在兩種形式之間看到的消費者行為？您是否看到任何回調，或者是否感覺消費者可能更多地在家裡做頭髮，這有助於固體美容，只是考慮到人們對價格上漲和關稅上漲的一些擔憂，我只是好奇您是否看到那裡有任何回調。謝謝。

Yeah. Overall, what I would say is compared to where we thought the economy could have gone in Q2. I think we did up in a better position the more that evolved. But when we think about consumers are on the Sally front in particular, we are seeing our consumers continue to be choiceful, not a further step down in consumer confidence and spending, but continued frugality.

是的。總體而言，我想說的是，與我們認為第二季經濟可能走向的情況相比。我認為，隨著情況的不斷演變，我們處於更有利的地位。但是，當我們特別關註消費者時，我們看到我們的消費者繼續保持選擇性，消費者信心和支出並沒有進一步下降，而是繼續節儉。

And so with that, we have customer research that does show more customers thinking about how DIY can serve as in between and going to the salon or more curiosity in Google searches and things about how do you color your hair. So we know that's on folks' minds.

因此，我們進行了客戶研究，結果顯示更多客戶在思考如何透過 DIY 來代替去沙龍，或者對谷歌搜尋以及如何染髮更加感興趣。所以我們知道這是人們所關心的問題。

Right now, what we see that weighing is that's a nice positive to our business with a bit of an offset in where a customer can pull back, which is a bit more in the Care and the ancillary businesses. But in terms of what we have as a business overall, right, we think there's a lot of our business model that performs well in this type of economy.

現在，我們看到，這對我們的業務來說是一個很好的積極因素，同時也在一定程度上抵消了客戶在護理和輔助業務方面的損失。但就我們整個業務而言，我們認為我們的許多商業模式在這種經濟環境下表現良好。

So value offering lets us navigate macro better than a lot and what we bring around innovation, education, engagement really allows our DIY customers to succeed on the Sally side of the front. So that, combined with our strategic initiatives, we think we're well positioned for the quarters ahead.

因此，價值提供讓我們能夠比許多事情更好地駕馭宏觀，而我們在創新、教育和參與方面所做的努力確實讓我們的 DIY 客戶能夠在前端取得成功。因此，結合我們的策略舉措，我們認為我們已為未來幾季做好了準備。

Okay. Great. And one last one, I guess, just on the online kind of education or [how-to] tool. Is there -- I guess, is there any way to quantify -- do consumers typically buy after using that? Is there any way to show I guess, if that's driving sales or not? Thanks.

好的。偉大的。我想，最後一個是關於線上教育或[操作方法]工具的。我想，有沒有什麼方法可以量化消費者在使用後通常會購買什麼？我猜有什麼方法可以表明這是否會推動銷售？謝謝。

Yeah, absolutely. So licensed color on demand is our online real-time platform to get education from a licensed stylist. To be able to go on to that platform, you register yourself as you're coming on. So we can track absolutely, whether you purchase immediately online or you later come to a store because we've identified you we can attract you through that process.

是的，絕對是如此。因此，按需授權的染髮顏色是我們獲得持證造型師指導的線上即時平台。為了能夠進入該平台，您必須在進入時進行註冊。因此，我們可以完全跟踪，無論您是立即在線購買還是稍後來到商店，因為我們已經識別了您，我們可以透過這個過程吸引您。

We actually see a great purchase rate. What is fascinating to us is fewer customers will immediately the buy button to the list that they've gotten online, but most of them printed out or bring it on their phone into a store and come and shop those products in store. So we've gotten a great redemption rate from doing that with 4,700 consultations on average every week on an annual basis, that adds up to quite a bit of sales.

我們確實看到了很高的購買率。令我們著迷的是，很少有顧客會立即點擊他們在網上獲得的清單上的購買按鈕，但大多數顧客會將其打印出來或用手機帶到商店並到店購買這些產品。因此，我們透過這種方式獲得了很高的兌換率，每年平均每週有 4,700 次諮詢，累計起來就是相當可觀的銷售額。

And when we look at those customers, they're actually coming in onetime more often in a year than our non-LCOD customers and their transaction value is about 25% higher than a customer not engaged with LCOD. So absolutely, part of the sales driving improvements that we're seeing is our -- one of our strategic initiatives.

當我們觀察這些客戶時，我們發現他們一年內光顧的次數實際上比非 LCOD 客戶要多，而且他們的交易價值比未參與 LCOD 的客戶高出約 25%。因此，毫無疑問，我們看到的銷售推動力改善部分是我們的策略舉措之一。

Okay. That sounds amazing. Thanks for all the details here.

好的。聽起來太棒了。感謝您提供的所有詳細資訊。

Olivia Tong, Raymond James.

奧利維亞唐，雷蒙德詹姆斯。

Hi, thanks. Good morning. I want to follow up a little bit on that and see if you could compare and contrast the performance in SBS versus BSG. Clearly, a very nice rebound in BSG after a tough winter. How much of that do you think was the pent-up demand? Perhaps if you could talk about performance start of the quarter versus end of quarter to start, and then I have a follow-up.

你好，謝謝。早安.我想稍微跟進一下這一點，看看您是否可以比較和對比 SBS 和 BSG 的表現。顯然，在經歷了一個艱難的冬天之後，BSG 出現了非常好的反彈。您認為其中有多少是被壓抑的需求？也許您可以談談本季初和本季末的表現，然後我可以進行後續跟進。

Absolutely. We are pleased to see the performance rebound in BSG as we had anticipated. The challenges in the second quarter were really transitory in nature with the flu and weather. Throughout the third quarter, the kit business was quite consistent. So once we got past those one-timers as we got past March business really evened out, as you saw a really nice performance on the Color side of the house, continued growth there with the right assortment of brands. And Care rebounding to about flat is what we anticipated that it would do.

絕對地。我們很高興看到BSG的業績如我們預期的那樣反彈。由於流感和天氣原因，第二季度的挑戰實際上是暫時的。整個第三季度，套件業務相當穩定。因此，一旦我們度過了那些一次性事件，當我們度過三月份時，業務就真正趨於平穩，正如您所看到的，彩色業務方面表現非常出色，並且通過正確的品牌組合繼續實現增長。護理費用將反彈至基本持平的水平，這正是我們預期的。

We still think that's a great response from our stylus and engagement behind new innovation like K18 as well as expansions in areas like Color Wow. But what we also know is we still have a two downturn trending brands in our business portfolio on that side of the house. And so we'll continue to work through that, but seeing Care flat in the response to innovation, we were really pleased with.

我們仍然認為，這是我們對觸控筆的積極回應，也是對 K18 等新創新以及 Color Wow 等領域擴展的積極參與。但我們也知道，我們的業務組合中仍然有兩個處於下滑趨勢的品牌。因此，我們將繼續努力解決這個問題，但看到 Care 對創新的回應持平，我們真的很高興。

So overall, that stylist seems to be in a healthy space as I mentioned earlier, just continuing to buy close to need out of the concern that something might change. So they watch the macro just like we do, but their current books of business are nice. And it wouldn't have been necessarily from a rebound of services. As I said, Q3 was pretty consistent across the business.

所以總的來說，正如我之前提到的，造型師似乎處於一個健康的領域，只是出於對某些事情可能會發生變化的擔憂，他繼續根據需要進行購買。因此，他們像我們一樣關注宏觀，但他們目前的業務狀況很好。而且這不一定是服務業反彈的結果。正如我所說，第三季整個業務表現相當穩定。

Great. That's super helpful. And then a number of your competitors have started to expand into wellness, and you've done great things with respect to some of the newer concepts in terms of the pilot stores and what have you. Is there potential for new categories within the Sally Beauty store. You've got a fantastic loyal customer realize, of course, that there are some near-term pressures. But just thinking bigger picture about the opportunity to expand into new categories in SBS while still keeping the core and obviously not potentially confusing the consumer as well. Thank you.

偉大的。這非常有幫助。然後，你們的許多競爭對手都開始向健康領域擴張，你們在試點商店等一些較新的概念方面也取得了巨大的成就。Sally Beauty 商店內是否有可能出現新的類別。當然，你有一位非常忠誠的客戶意識到存在一些短期壓力。但是，只要從更大的角度來看待在 SBS 中擴展到新類別的機會，同時仍然保持核心，並且顯然不會讓消費者感到困惑。謝謝。

Absolutely. When we think about new categories, there's a nice role that we are trying to better understand in that regard when we're looking at our brand refresh stores. So in our brand refresh stores, of which by the end of the year, we'll have 35 and another 50 next year. And we are doing a very targeted SKU rationalization across our core categories to be able to free up space for newness around cosmetics, skin care, additional nail participation and [fragrance] would be the largest ones that are out there that we're working on. So definitely some trend right categories that we think could be a great offering to our Sally customers.

絕對地。當我們考慮新的類別時，當我們審視我們的品牌更新商店時，我們試圖更好地理解這方面的一個很好的角色。因此，到今年年底，我們的品牌更新商店數量將達到 35 家，明年將達到 50 家。我們正在對核心類別進行非常有針對性的 SKU 合理化，以便為化妝品、皮膚護理、額外的指甲參與和[香水]等新產品騰出空間，這些是我們正在努力開發的最大類別。因此，我們認為某些符合潮流的類別肯定能為我們的 Sally 客戶提供優質服務。

As I said, the unlock here is that with the brand refresh and new sorting process in the stores and the new fixtures. We believe we have the opportunity to new categories to life and have our customers see them and participate in recognizing them. So we'll be understanding how that is progressing over the course of the next few quarters. And with the for the potential to be able to continue to expand that brand refresh, which would include category mix updates as well.

正如我所說，這裡的解鎖是透過品牌更新和商店中的新分類流程以及新設備。我們相信我們有機會將新的產品類別推向市場，並讓客戶看到它們並參與認可它們。因此，我們將了解未來幾季的進展。並且具有繼續擴大品牌更新的潛力，其中也包括類別組合更新。

Understood. Thank you.

明白了。謝謝。

Simeon Gutman, Morgan Stanley.

摩根士丹利的西蒙古特曼。

Hi, this is Lauren on for Simeon. First one is on the Care category. It continues to trend softer versus Color. Just curious how you may be thinking about driving more engagement in this category despite the softer macro could for more like promotions, awareness, how you're thinking about raising that Care category?

大家好，我是西蒙的勞倫。第一個是關於護理類別。與顏色相比，它的趨勢繼續趨於柔和。我只是好奇，儘管宏觀經濟形勢較為溫和，但您可能正在考慮推動這一類別的更多參與，例如促銷和知名度，您如何考慮提升“關懷”類別？

Yeah. Absolutely. We realized the two quarters in at Sally, we're seeing that Care be softer than we would like to see and really related to consumer spending in a place where they'll pull back a little bit more on Care and not pull back on Color just given the opportunity for a broader product assortment or an [AUR] change.

是的。絕對地。我們在 Sally 的兩個季度中發現，護理產品比我們希望看到的要疲軟，並且與消費者支出確實相關，他們會在護理產品上稍微縮減一點，而不會在彩色產品上縮減，只是因為有機會擴大產品種類或 [AUR] 發生變化。

When we've been working through the past quarter, we've been working hard to look at the tactics that we have, whether that be in personalization, performance marketing, promotions where customers are eying more single item promotion rather than quantity accounts to be sure that we can refine our offering and serve those customers the best way that we can in this macro environment.

在過去的一個季度中，我們一直在努力研究我們所採用的策略，無論是個人化、績效行銷還是促銷，客戶關注的是單件商品促銷而不是數量帳戶，以確保我們能夠改進我們的產品，並在這種宏觀環境下以最好的方式為這些客戶服務。

A couple of examples. We're seeing a lot more taglines on our Sally side of the business, about skip the salon or why drop $100 every two weeks, creates along quality nail looks at home, so across the whole portfolio, not just care but in nail and other categories, really leaning into what that DIY equation can be from a value perspective and how to continue to advance that. So more to come, but performance marketing and promotion and promotion design, more than promotion depth are really the areas that we're focused on to work on a rebound.

舉幾個例子。我們在 Sally 業務方面看到更多的標語，關於跳過沙龍或為什麼每兩週花 100 美元，在家打造高品質指甲造型，因此在整個產品組合中，不僅僅是護理，還包括指甲和其他類別，真正傾向於從價值角度實現 DIY 等式以及如何繼續推進這一點。因此，我們還會做更多，但績效行銷、促銷和促銷設計，而不是促銷深度，才是我們真正關注的反彈領域。

Okay. Great. That's helpful. And our follow-up is just on the implied Q4 comp, which should be maybe flattish to slightly positive given your guide. Can you break this out between SBS and BSG? Maybe what are your expectations for both heading into the quarter? And any early rates for quarter-to-date? Thank you.

好的。偉大的。這很有幫助。我們的後續關注點只是隱含的第四季度業績，根據您的指導，該業績應該可能持平或略微上漲。您能將其分為 SBS 和 BSG 嗎？您對本季的預期是什麼？本季度迄今為止有任何早期利率嗎？謝謝。

Yeah. So I would say everything is built into our expectations because we have about eight weeks left in our quarter and eight weeks left in our fiscal year. So all that's included in the guidance. Underneath that, we expect a sequential improvement in the top line in both businesses, assuming a consistent macro environment to what we've been living in to date. So with that, at Sally, the momentum we have in hair color is fueled by innovation, performance marketing, all the things we've been discussing, we think that will continue.

是的。所以我想說一切都符合我們的預期，因為我們的季度還剩下大約八週，我們的財政年度還剩下八週。所有這些都包含在指南中。在此基礎上，我們預計，假設宏觀環境與我們迄今為止所處的狀況一致，這兩項業務的營收將持續成長。因此，在 Sally，我們在染髮領域的發展勢頭是由創新、績效行銷以及我們一直在討論的所有內容所推動的，我們認為這種勢頭將會持續下去。

And we're also working, as I just mentioned, to deliver stronger performance in the other categories, specifically Care, where we're adjusting some of the tactics to drive that improvement. And then at BSG, we think innovation will be the continued fuel behind the growth in that business with K18 continuing, the recent launch of Unite being another good example of how we're winning in that space. So overall, sequential improvement in both businesses as we finish out the year.

正如我剛才提到的，我們還在努力在其他類別中取得更好的業績，特別是在護理領域，我們正在調整一些策略來推動這項改進。然後在 BSG，我們認為創新將成為該業務成長的持續動力，K18 將繼續發展，最近推出的 Unite 是我們在該領域取得成功的另一個很好的例子。因此，總體而言，到今年年底，兩項業務均取得了連續改善。

Great. Thank you.

偉大的。謝謝。

(Operator Instructions)

（操作員指示）

Ashley Helgans, Jefferies.

傑富瑞 (Jefferies) 的阿什利·赫爾甘斯 (Ashley Helgans)。

Hi, this is Sidney on for Ashley. Thanks for taking our questions. So you discussed seeing some trade down and price and value sensitivity from the consumer, how are you kind of balancing that with some of these planned price increases. And then can you just talk about traffic pacing throughout the quarter and then what you're seeing quarter-to-date, maybe any changes or trends from the rate last quarter into now? Thank you.

大家好，我是 Sidney，為您介紹 Ashley。感謝您回答我們的問題。所以您討論了看到消費者的某些交易下降和價格及價值敏感性，您如何將其與一些計劃中的價格上漲進行平衡。然後，您能否談談整個季度的流量節奏，以及本季迄今為止的觀察情況，從上個季度到現在，是否存在任何變化或趨勢？謝謝。

Yeah. So overall, in terms of traffic and transactions, we're seeing a business directionally in line with what we saw in Q2. So we are [keeping] with Q3 as we're entering Q4. So we saw a nice rebound from Q2 as we recovered from some of the weather macro-related trends that were persisting there.

是的。因此，總體而言，就流量和交易而言，我們看到的業務方向與第二季一致。因此，在進入第四季時，我們將繼續保持第三季的勢頭。因此，我們看到第二季度出現了良好的反彈，因為我們從持續存在的一些與天氣宏觀相關的趨勢中恢復過來。

And then I think when we think about the business overall in Care and what we're working on, as I just mentioned, there's a lot of things that we're working to have that customer respond well to us in terms of performance marketing, promotion activity. But in terms of price increases, planning any material changes in prices in the near term. I'm wondering, Marlo, if you want to talk about just where we sit with tariffs, if that's a driver of the question.

然後我認為，當我們考慮 Care 的整體業務以及我們正在進行的工作時，正如我剛才提到的，我們正在做很多事情，以便客戶在績效行銷、促銷活動方面對我們做出良好的反應。但就價格上漲而言，近期內不會對價格做出任何重大調整。馬洛，我想知道您是否想談談我們對關稅的立場，如果這是問題的驅動因素。

Yeah. So as we're thinking about tariffs, we've talked about it last quarter as well. Our exposure is somewhat less than most or others would say if we're limited to 20% of our COGS is coming out of either China or Western Europe, and that's split pretty evenly between both of those. So as we look forward, we'll look beyond this fiscal year.

是的。因此，當我們考慮關稅時，我們上個季度也討論過這個問題。如果我們的銷貨成本僅限於 20% 來自中國或西歐，那麼我們的風險敞口會比大多數人或其他人所說的要小一些，而且這兩個國家之間的分攤相當均勻。因此，當我們展望未來時，我們會著眼於本財政年度之後的情況。

We talked about this year. It's not too impactful given our inventory position only eight weeks ago, we really haven't seen a lot of vendors pass through cost increases to us. But as we look towards next year, we are carefully watching our vendors, and we would work to costar with our vendors. We may have modest pricing actions, and then we also look for sourcing optimization.

我們談論了今年的情況。考慮到我們八週前的庫存狀況，這並沒有太大的影響，我們確實沒有看到很多供應商將成本增加轉嫁給我們。但展望明年，我們將密切關注我們的供應商，並努力與我們的供應商合作。我們可能會採取適度的定價行動，然後我們也會尋求採購優化。

But we believe there is incremental opportunity from the work that we're doing on our SKU rationalization as well. So we feel confident that we can maintain both our healthy gross margins and that we'll be able to pass through any of those pricing adjustments remain [each day]

但我們相信，我們在 SKU 合理化所做的工作也會帶來增量機會。因此，我們有信心保持健康的毛利率，並且能夠承受任何價格調整的影響。[每天]

Great. Thank you.

偉大的。謝謝。

Thank you. And I'm currently showing no further questions at this time. I'd like to hand the call back over to Denise Paulonis for closing remarks.

謝謝。目前我沒有其他問題。我想將電話轉回 Denise Paulonis 做最後發言。

Thank you for joining us today. I appreciate all the interest in Sally Beauty. And as always, a big thank you to our associates around the world who work hard to serve our customers every day. And we look forward to providing an update at the end of our fiscal year in just a few months.

感謝您今天加入我們。我感謝大家對 Sally Beauty 的關注。一如既往，我們衷心感謝世界各地的同事，他們每天都努力為我們的客戶提供服務。我們期待在幾個月後的財政年度結束時提供最新消息。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。