SBH - Sally Beauty: This Undervalued Stock Could Surprise To The Upside
2024-04-21 14:12:05 ET
Summary
- Sally Beauty Holdings is a leading cosmetics and beauty care company with over 4,500 stores globally.
- The stock has declined from $14 to less than $11 due to a competitor warning of a slowdown in beauty sales.
- Sally Beauty has set strategic goals that could lead to improved financial results, including cost savings of $50 million in 2025 and $120 million in 2026.
Sally Beauty Holdings, Inc. (SBH) is a leading cosmetics and beauty care company. It sells to consumers through its "Sally Beauty" chain of stores, and it sells to professionals through its "Beauty Systems Group" division. It has over 4,500 stores globally, and sells online as well and through direct sales consultants. The Sally Beauty division accounts for about 57% of revenues, and the Beauty Systems Group generates around 43% of total sales, each year. This company has successfully developed many of its own brands which offer high margins and it has exclusive distribution agreements with many leading brands as well. As shown below, it also has 16 million loyalty members which account for about 77% of sales in the U.S. and Canada....
Sally Beauty: This Undervalued Stock Could Surprise To The Upside