Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Sally Beauty Holdings Inc Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Sally Beauty Holdings Inc  (NYSE: SBH  ) were getting dumped today, falling as much as 11% and finishing down 7.5% after a posting a disappointing earnings report and announcing its CEO succession plan.

So what: The beauty-products retailer saw revenue tick up 2.4% in its second quarter to $919.5 million, but that was short of analyst estimates at $932.8 million. Profits also missed, coming in at $0.36 against expectations of $0.39 as CEO Gary Winterhalter noted "extremely unfavorable weather" in the quarter. Still, the company managed to deliver a 1% gain in same-store sales, and Winterhalter said warm weather locations saw positive traffic, which bodes well for the company as a whole going forward.

Now what: Separately, the company also announced its CEO succession plan, saying it had appointed Christian Brickman as its new COO and president and that Brickman would replace Winterhalter as CEO one year from now. Winterhalter has been CEO since 2006, during which time the stock has tripled, so investors may be reluctant to see him go, but he will remain as chairman of the board through January 2018. Though Sally Beauty missed estimates in the quarter, I wouldn't be too concerned with the performance, as many retailers blamed poor weather for slow traffic, and the company still managed to grow comps during the period, which shows resilience and organic strength.

Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2940383, ~/Articles/ArticleHandler.aspx, 9/1/2015 10:35:49 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Jeremy Bowman

Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market.

Today's Market

updated 1 hour ago Sponsored by:
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASD 4,636.11 -140.40 -2.94%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 4:01 PM
SBH $25.84 Down -0.30 -1.15%
Sally Beauty Holdi… CAPS Rating: *****