Sally Beauty Holdings (SBH) FY2023 results: revenue $3.7 billion, down 2.3% on the year

Sally Beauty Holdings, Inc. (SBH) reported revenue of $3.7 billion for fiscal 2023, the year ended 30 September 2023, down 2.3% on the year before. Net income was $185 million, up 0.6%, and diluted earnings per share $1.69. The figures are the company's own, from the 10-K it filed with the SEC on 16 November 2023.

Revenue

$3.7 billion

-2.3% on the year

FY2016FY2023

Operating margin

8.7%

8.8% a year earlier

FY2016FY2023

Net income

$185 million

+0.6% on the year

FY2016FY2023

Diluted EPS

$1.69

+1.8% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	3,728	3,816	3,875	-2.3%
Cost of revenue	1,830	1,896	1,922	-3.5%
Gross profit	1,898	1,919	1,953	-1.1%
Gross margin	50.9%	50.3%	50.4%
Selling, general and administrative	1,556	1,554	1,530	+0.1%
Operating income	325	338	418	-3.7%
Operating margin	8.7%	8.8%	10.8%
Interest expense	73.0	93.5	93.5	-22.0%
Pre-tax income	252	244	325	+3.3%
Income tax	67.5	60.5	85.1	+11.4%
Effective tax rate	26.8%	24.8%	26.2%
Net income	185	184	240	+0.6%
Net margin	5.0%	4.8%	6.2%
Diluted EPS	$1.69	$1.66	$2.10	+1.8%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	249	156	382	+59.3%
Capital expenditure	90.7	99.2	73.9	-8.6%
Free cash flow	159	57.2	308	+177.0%
Free cash flow margin	4.3%	1.5%	7.9%
Cash from investing	-99.8	-102	-76.0
Cash from financing	-101	-374	-420
Depreciation and amortisation	102	99.9	102	+2.5%
Share-based compensation	15.9	9.9	11.7	+59.5%
Buybacks	15.2	130	n/a	-88.4%
Diluted shares, weighted	109m	110m	114m	-0.9%
Shares outstanding at period end	106m	107m	113m	-0.7%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	509	294	281	+73.3%
Debt	1,078	1,152	1,393	-6.4%
Operating lease liabilities	455	425	404	+7.1%
Finance lease liabilities	0.1	0.3	0.5	-57.0%
Other liabilities	683	706	769	-3.3%
Total liabilities and equity	2,725	2,577	2,847	+5.8%
Fixed assets	298	298	307	-0.0%
Goodwill	533	526	541	+1.3%
Intangible assets	55.2	50.3	55.5	+9.7%
Cash and equivalents	123	70.6	401	+74.3%
Receivables	33.4	34.1	32.6	-2.0%
Inventory	975	936	871	+4.1%
Other assets	708	662	638	+7.0%
Total assets	2,725	2,577	2,847	+5.8%

10-K for the year ended 30 September 2023, filed 16 November 2023: the filing.