Sally Beauty reports Q3 adjusted EPS 45c, consensus 40c

Reports Q3 revenue $942M, consensus $931.68M. Reports Q3 SSS up 1.5%. “We are pleased to report solid third quarter results, including positive comparable sales in both our Sally Beauty and Beauty Systems Group segments,” said Denise Paulonis, president and chief executive officer. “At Sally Beauty, we saw positive consumer response to our performance marketing efforts, marketplace expansions, and digital enhancements. These strategic initiatives amongst others have driven improving trends in new and reactivated customers. Turning to BSG, continued focus on innovation and territory expansion drove a third consecutive quarter of positive comparable sales. Adjusted gross margin remained strong at 51% and adjusted operating margin of 8.9% exceeded our guidance.”