Sally Beauty Holdings, Inc. (NYSE:SBH) Q1 2023 Earnings Call Transcript

Denise Paulonis: Yes, not materially different in terms of trade down. I think when you think about the BSG side, people are stickier to their brands. So they’re just much more focused on getting value when value opportunities present themselves. But for the most part, stylists are pretty loyal particularly in color to what they know and what they use. So that’s been pretty steady. And on the Sally side, it becomes a little bit more on the frugality side of just not adding the extra items to the basket. So color sales have definitely remained strong as people are continuing to take care of themselves and that natural part of their hair that they want to maintain. It’s the incremental — inclusive of higher ticket items like styling tools that over the last few years had actually been quite strong.

And then as inflation started to tick up mid last year, those higher ticket items became more — people became more conservative in their choice around purchasing those. So I’d say it’s much more of the basket adds have gone down rather than necessarily seeing people trade down in terms of price point to this point.

Operator: And currently, no further questions in queue.

Denise Paulonis: Great. Well, thank you all for joining this morning. We are very pleased with the start of our new fiscal year and excited about the strategy that we have in front of us, those to deliver this year and in future years to come and drive long-term shareholder value. As a final point, as I always do, I would like to thank all of our associates around the globe for serving our customers, taking care of each other and really helping us drive a successful business and a happy business. So hopefully, everybody has a great day, and we look forward to talking to you again soon.

Operator: Thank you. And ladies and gentlemen, this conference will be available for a replay after 9:30 this morning and running through February 16 at midnight. You can access the AT&T replay system at any time by dialing 1866-207-1041 and entering the access code 723-2209. International parties may dial 402-970-0847. Those numbers again, 1866-207-1041. For international parties, 402-970-0847 with the access code 723-2209. That does conclude our call for today. Thanks for your participation and for using AT&T Teleconference. You may now disconnect.