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Sally Beauty (SBH) Up More Than 45% in 6 Months: Here's Why
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Sally Beauty Holdings, Inc. (SBH - Free Report) is on track to drive growth, courtesy of strategic initiatives like customer-centric efforts and product innovation. The Fuel for Growth initiative keeps the company well-positioned for growth. The beauty products provider’s Happy Beauty concept holds promise.
Shares of the Zacks Rank #2 (Buy) company have rallied 46% in the past six months compared with the industry’s 19.3% growth. The stock has outperformed the Zacks Retail-Wholesale sector’s growth of 15.7% during this time.
Let’s delve deeper.
Image Source: Zacks Investment Research
Strategic Pillars Fuel Growth
Sally Beauty has been focused on its three key strategic initiatives, which include enhancing customer centricity, growing high-margin-owned brands and carrying out innovations while increasing the efficiency of operations and optimizing its capabilities. Keeping along these lines, management boasts a robust pipeline of product innovation to increase brand penetration. The company concluded a broad-based store optimization program, which helped increase productivity and profitability by delivering an engaging omnichannel experience for customers.
The company is on track to drive growth courtesy of strategic initiatives like product innovation, expanded distribution and new concepts and services. Fuel for Growth initiative keeps the company well-positioned to capture gross margin and SG&A gains while undertaking growth and returning shareholders’ value.
With regard to customer-centric efforts, the company is focused on acquiring new customers via marketing programs, differentiated product offerings and strategic initiatives. At the end of the fiscal 2023, the company had more than 16 million loyalty members at Sally U.S. and Canada, reflecting 78% of sales. Also, the BSG Rewards credit card purchases comprised 9% of annual sales for fiscal 2023.
Happy Beauty: Holds Promise
The company launched Happy Beauty Co., a unique new retail store concept that brings an engaging beauty experience to market with a value price point offering. Happy Beauty offers quality beauty at great prices in an accessible, fun and expressive environment. All the merchandise is priced under $10, with product offerings encompassing four key categories — Cosmetics & Facial Care, Bath & Body, Nails and Hair, featuring third-party brands and the company’s owned brands.
With a strong record of product and brand development, the company is exercising this muscle to bring compelling value alternatives to well-known premium-priced products to its customers. At the same time, it will partner with smaller vendors who view this as a valuable opportunity to build visibility and drive growth for their brands.
Final Thoughts
Sally Beauty is grappling with macroeconomic headwinds like inflationary pressures. The company continues to battle soft consumer traffic, which is putting pressure on the top line. Unfavorable currency rates remain a threat.
Focus on growth endeavors is likely to keep the company in investor’s good books.
The Zacks Consensus Estimate for Gap’s current financial-year earnings suggests growth of 387.5% from the year-ago reported figure.
DICK’S Sporting Goods (DKS - Free Report) , which operates as a major omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment, carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for DICK’S Sporting’s current fiscal year’s sales and earnings suggests growth of 3.8% and 2.7%, respectively, from the year-ago reported figures. DKS has a trailing four-quarter negative earnings surprise of 0.04%, on average.
American Eagle (AEO - Free Report) , a leading apparel retailer, currently carries a Zacks Rank #2. AEO delivered an earnings surprise of 23% in the trailing four quarters.
The Zacks Consensus Estimate for American Eagle’s current financial-year sales and earnings suggests growth of almost 5% and 43.3%, respectively, from the year-ago reported figures.
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Sally Beauty (SBH) Up More Than 45% in 6 Months: Here's Why
Sally Beauty Holdings, Inc. (SBH - Free Report) is on track to drive growth, courtesy of strategic initiatives like customer-centric efforts and product innovation. The Fuel for Growth initiative keeps the company well-positioned for growth. The beauty products provider’s Happy Beauty concept holds promise.
Shares of the Zacks Rank #2 (Buy) company have rallied 46% in the past six months compared with the industry’s 19.3% growth. The stock has outperformed the Zacks Retail-Wholesale sector’s growth of 15.7% during this time.
Let’s delve deeper.
Image Source: Zacks Investment Research
Strategic Pillars Fuel Growth
Sally Beauty has been focused on its three key strategic initiatives, which include enhancing customer centricity, growing high-margin-owned brands and carrying out innovations while increasing the efficiency of operations and optimizing its capabilities. Keeping along these lines, management boasts a robust pipeline of product innovation to increase brand penetration. The company concluded a broad-based store optimization program, which helped increase productivity and profitability by delivering an engaging omnichannel experience for customers.
The company is on track to drive growth courtesy of strategic initiatives like product innovation, expanded distribution and new concepts and services. Fuel for Growth initiative keeps the company well-positioned to capture gross margin and SG&A gains while undertaking growth and returning shareholders’ value.
With regard to customer-centric efforts, the company is focused on acquiring new customers via marketing programs, differentiated product offerings and strategic initiatives. At the end of the fiscal 2023, the company had more than 16 million loyalty members at Sally U.S. and Canada, reflecting 78% of sales. Also, the BSG Rewards credit card purchases comprised 9% of annual sales for fiscal 2023.
Happy Beauty: Holds Promise
The company launched Happy Beauty Co., a unique new retail store concept that brings an engaging beauty experience to market with a value price point offering. Happy Beauty offers quality beauty at great prices in an accessible, fun and expressive environment. All the merchandise is priced under $10, with product offerings encompassing four key categories — Cosmetics & Facial Care, Bath & Body, Nails and Hair, featuring third-party brands and the company’s owned brands.
With a strong record of product and brand development, the company is exercising this muscle to bring compelling value alternatives to well-known premium-priced products to its customers. At the same time, it will partner with smaller vendors who view this as a valuable opportunity to build visibility and drive growth for their brands.
Final Thoughts
Sally Beauty is grappling with macroeconomic headwinds like inflationary pressures. The company continues to battle soft consumer traffic, which is putting pressure on the top line. Unfavorable currency rates remain a threat.
Focus on growth endeavors is likely to keep the company in investor’s good books.
Tops 3 Picks
Gap (GPS - Free Report) , a fashion retailer of apparel and accessories, currently sports a Zacks Rank of 1 (Strong Buy). GPS has a trailing four-quarter earnings surprise of 137.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gap’s current financial-year earnings suggests growth of 387.5% from the year-ago reported figure.
DICK’S Sporting Goods (DKS - Free Report) , which operates as a major omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment, carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for DICK’S Sporting’s current fiscal year’s sales and earnings suggests growth of 3.8% and 2.7%, respectively, from the year-ago reported figures. DKS has a trailing four-quarter negative earnings surprise of 0.04%, on average.
American Eagle (AEO - Free Report) , a leading apparel retailer, currently carries a Zacks Rank #2. AEO delivered an earnings surprise of 23% in the trailing four quarters.
The Zacks Consensus Estimate for American Eagle’s current financial-year sales and earnings suggests growth of almost 5% and 43.3%, respectively, from the year-ago reported figures.