Soft trends in consumer and stylist demand contributed to Sally Beauty Holdings falling short of Wall Street estimates in the fourth quarter.

Net earnings in the quarter were $42.6 million, or 39 cents per diluted share, versus $21.3 million, or 20 cents per diluted share, in the prior-year period. Adjusted for one-time events, net earnings were $45.7 million, 42 cents per diluted share, versus $54.4 million, or 50 cents per diluted share, in the year-earlier period, the company indicated.

Sally Beauty came up short of a MarketBeat-published fourth-quarter analyst consensus estimate of 46 cents per adjusted diluted share and $930.35 million.

Consolidated comparable sales slipped 1.6% in the quarter year over year, driven primarily by lower traffic and inflationary pressures that continued to impact consumer behavior at Sally Beauty and the continuation of professional stylist demand trends seen during the past several quarters at Beauty Systems Group, the company pointed out. Consolidated net sales were $921.4 million, down 4.3% from the year before. Operating earnings were $76.9 million versus $39.2 million in the year-past quarter, while adjusted operating earnings were $79.3 million versus $83.9 million.

Sally Beauty operated 308 fewer stores at the end of the quarter compared to the year-previous period.

Sally Beauty Supply segment net sales were $524.6 million in the quarter, down 5.3% year over year as comps declined 1.2%. Beauty Systems Group segment net sales were $396.8 million in the period, down 2.9% year over year as comps declined 2.3%, the company indicated.

For the full fiscal year, Sally Beauty’s net earnings were $184.6 million, or $1.69 per diluted share, versus $183.6 million, or $1.66 per diluted share, in the quarter a year prior. Adjusted net earnings were $200.4 million, or $1.83 per diluted share, versus $237.9 million, or $2.16 per diluted share in the year-earlier period, the company maintained.

Consolidated comps increased 1.4% year over year. Net sales were $3.73 billion versus $3.82 billion in the year earlier. Operating earnings were $325 million versus $337.6 million in the year past, while adjusted operating earnings were $340.8 million versus $391.3 million.

“We are pleased to report full-year financial results in line with the expectations we laid out at the beginning of fiscal 2023,” said Denise Paulonis, Sally Beauty president and CEO. “We drove a comparable sales gain, maintained healthy gross margins and generated strong cash flow from operations against a rapidly shifting backdrop. We also advanced our consumer-centric strategies during the year, launching new concepts and bringing new services to the market while delivering unparalleled product innovation to both our Sally and BSG customers. Our teams are executing well on our strategic initiatives designed to reignite top-line growth and improve profitability, enhancing our customer centricity, growing our high-margin own brands and amplifying innovation, and increasing the efficiency of our operations. Building on our strong foundation, we are focused on the future and remain committed to creating value for our shareholders.”

Although store closings weighed on financial results, Sally Beauty comparable sales gained as the company topped Wall Street estimates.

Adjusted diluted earnings per share topped a MarketBeat analyst consensus of 49 cents while sales beat a $921.7 million estimate.

First quarter consolidated net sales were $957.1 million, down 2.4% versus the prior-year period, the company indicated. Consolidated comparable sales gained 1.1% year over year. Operating earnings were $86.6 million versus $112.8 million in the year-past period.

Sally Beauty segment net sales were $549.5 million in the quarter, a decrease of 2.1% compared to the year-before period while comparable sales increased by 3%. In the U.S. and Canada, where SBS does 78% of its sales, comps gained 2.6%. The segment had an unfavorable impact of 210 basis points from foreign currency exchange on reported sales and operated 383 fewer stores at quarter’s end versus the year-previous period. On a constant currency basis, segment e-commerce sales advanced 13% to $35 million versus the year-before quarter and represented 6.4% of segment net sales in the period, according to Sally Beauty.

Segment net sales at the Beauty Systems Group focused on professional sales in the beauty sector, were $407.6 million, down 2.7% versus the year-earlier quarter.

“We are pleased with our first quarter results, which reflect strong execution from our teams and a continuing focus on our strategic initiatives designed to inspire a more colorful, confident and welcoming world,” said Denise Paulonis, president and CEO, in announcing the financial results. “During the first quarter, we delivered net sales of $957 million, adjusted gross margin of 51% and adjusted EBITDA of $126 million. In addition, we successfully implemented our distribution center consolidation and store optimization plan, furthering our goal to maximize the value of our large real estate portfolio, optimize our supply chain and provide a seamless omnichannel experience to our customers.”

The third quarter wasn’t exactly pretty for Sally Beauty as its sales and earnings slipped.

Net earnings in the quarter were $46.6 million, or 43 cents per diluted share, versus $76.2 million, or 66 cents per diluted share, in the prior-year period. Adjusted for one-time charges, net earnings were $59.8 million, or 55 cents per diluted share, versus $78 million, or 68 cents per diluted share, in the year-earlier quarter, the company reported.

Adjusted diluted earnings per share fell four cents short of a MarketBeat-published analyst average estimate although sales beat a $951 million prediction.

Consolidated net sales were $961.5 million, down 6% versus the 2021 quarter, as comparable sales decreased 3.6% year over year after gaining 43.1% in the 2021 period. Continued inflationary pressures, supply chain challenges and difficult comparisons to the 2021 quarter drove the comp store sales decline, Sally Beauty noted. The company operated 149 fewer stores at the end of the quarter compared to the year-earlier period. Foreign currency translation dropped consolidated net sales by 130 basis points in the quarter. Global e-commerce sales were $81 million in the period or 8.4% of consolidated net sales.

On the retail side of the business, Sally Beauty Supply’s net sales were $551.7 million in the quarter, down 8.5% versus the year-before period with comps sliding 5% after a 43.1% gain in the 2021 quarter. The division had an unfavorable impact of 200 basis points from foreign currency translation on reported sales and operated 143 fewer stores at the end of the period year over year. At quarter’s end, net store count was 3,468. Division e-commerce sales were $33 million, or 6% of sales for the quarter.

Sales in the Beauty Systems Group, which uses stores and representatives to sell to professional customers, posted net sales of $409.7 million in the quarter, down 2.4% from the year-past period as comps slipped 1.6% after a 43% gain in the 2021 period and six fewer stores operated by quarter’s end, Sally Beauty stated. Division e-commerce sales were $48 million or 11.6% of sales for the period.

“During the third quarter, we delivered healthy gross margins of 51% and adjusted operating margin of 10.5% despite the challenging macro backdrop,” said Denise Paulonis, Sally Beauty president and CEO, in announcing the financial results. “Our teams executed well amidst continued inflationary and supply chain pressures that impacted topline performance. We are pleased that our strong financial position allowed us to continue investing for growth while completing the full repayment of $300 million of our 8.75% senior secured notes in the quarter. With a healthy balance sheet, a strong operating infrastructure and a sticky core customer, we are well positioned to continue navigating the complex macro environment.”