Stock Track | Sally Beauty Holdings Plummets 5% Despite Strategic Initiatives Amid Market Challenges

Stock Track11-15

Sally Beauty Holdings Inc. (SBH) saw its stock plummet 5.01% on Friday, November 15th, amid market challenges and modest financial results. The drop came despite the company's efforts to drive growth through strategic initiatives like its brand refresh, licensed colors on demand, expanding owned brands, and marketplace partnerships.

In SBH's Q4 2024 earnings call, the company reported a 1.5% increase in net sales and 2% growth in comparable sales, driven by new customer acquisition, reactivations, and momentum at its Beauty Systems Group (BSG) segment. However, analysts remained cautious, with Morgan Stanley maintaining an "Underweight" rating and citing market challenges.

While SBH highlighted its plans for a Sally Beauty brand refresh, store experience enhancements, and continued focus on owned brands, e-commerce, and acquisitions, its fiscal 2025 guidance was relatively modest. The company projected flat to 2% net sales growth and an adjusted operating margin of 8.5% to 9%, reflecting the competitive landscape and macroeconomic pressures.

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