Sally Beauty reports Q2 adjusted EPS 42c, consensus 39c

Reports Q2 revenue $883M, consensus $901.46M. “We are pleased to report a third consecutive quarter of adjusted operating margin expansion and increased profitability, driven by strong gross margin performance and careful cost control,” said Denise Paulonis, president and CEO. “We were able to deliver these results amidst a challenging macro backdrop, which impacted our topline performance. The business continues to generate strong cash flow, enabling us to maintain our balanced capital allocation strategy, which prioritizes investing in our strategic initiatives, optimizing our balance sheet and returning value to shareholders. During the Q2, we further reduced our debt levels by $36M and repurchased $10M of stock under our share repurchase program.”