Sally Beauty Holdings, Inc. (NYSE:SBH) Q2 2022 Earnings Conference Call August 4, 2022 8:30 AM ET

Company Participants

Jeff Harkins - VP, IR & Strategic Planning

Denise Paulonis - President, CEO & Director

Marlo Cormier - SVP & CFO

Conference Call Participants

Rupesh Parikh - Oppenheimer

Steph Wissink - Jefferies

Oliver Chen - Cowen

Olivia Tong - Raymond James

Carla Casella - JP Morgan

Operator

Welcome to the Sally Beauty Holdings conference call to discuss the company's fiscal 2022 third quarter results. All participants have been placed in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Additional instructions will be given at that time.

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

Jeff Harkins

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

Before we begin, I want to remind everyone that we have made a presentation available for today's call that can be viewed from the link provided on our investor site at sallybeautyholdings.com. I would also like to remind you that management's remarks today 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 in 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 and its earnings press release and on its website.

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

Denise Paulonis

Thank you Jeff, and good morning everyone. Looking at our fiscal third quarter performance, our teams execute the plan as they remained focused on delighting and engaging our core Sally customers and BSG stylists. Net sales came in at $961 million representing a decline of 6% on 149 fewer stores, while comparable sales declined to 3.6%. Our top line results reflect the continued impact of a challenging macro environment, most notably the inflationary pressures and supply chain disruptions we discussed on our Q2 earnings call. As well as a difficult comparison to last year, when the easing of COVID restrictions drove a net sales increase of 45%.