Sally Beauty Holdings, Inc. (NYSE:SBH) Q3 2024 Earnings Conference Call August 8, 2024 8:30 AM ET

Company Participants

Jeff Harkins - Vice President, Investor Relations and Treasurer
Denise Paulonis - President and Chief Executive Officer
Marlo Cormier - Chief Financial Officer

Conference Call Participants

Oliver Chen - TD Cowen
Korinne Wolfmeyer - Piper Sandler
Olivia Tong - Raymond James

Operator

Good morning everyone and welcome to the Sally Beauty Holdings Conference Call to discuss the Company's Third Quarter Fiscal 2024 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. With me on the call today are Denise Paulonis, Chief Executive Officer and Marlo Cormier, Chief Financial Officer. Before we begin I would 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.

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 factor section of our most recent annual report on Form 10-K and other filings with the SEC.

Any forward-looking statements made on 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 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.

Denise Paulonis

Thank you Jeff and good morning everyone. Our third quarter results point to improving trends across both segments of our business, Sally Beauty and Beauty Systems Group. We delivered net sales growth of 1.2% and a comparable sales increase of 1.5% above the high end of our latest guidance range.

Our top-line performance reflects continued momentum and fundamental strength in our BSG segment as well as a notable improvement in performance at Sally reflecting the traction or gaining from our strategic initiative.

Adjusted gross margin was strong at 51% and adjusted operating margin also came in above our guidance range at 8.9%. Our business generated solid cash flows from operations of $48 million enabling us to continue to return capital to shareholders by way of share repurchases in the quarter.