Oddity and Sally Beauty beat estimates with solid quarterly earnings

14 Aug 2024 --- Beauty industry titans Oddity and Sally Beauty report strong financial results for the second and third quarters, respectively, beating earnings estimates. While Oddity continues its technology-driven rise one year following its IPO, Sally Beauty sees a more gradual climb with a focus on core hair coloring business fundamentals.

Oddity exceeded its financial guidance for the second quarter “across every metric,” and raised its full-year 2024 outlook.

“Our business is firing on all cylinders. Results in the second quarter were driven by strong and profitable growth across brands, categories and products,” says Oran Holtzman, Oddity co-founder and CEO.

“I see massive growth for our business ahead. Our early investments in technology are transforming the industry, unlocking online and delivering huge financial rewards. We will continue investing our powerful cash flow in technology, science and building new brands to keep us years ahead of our competitors.”

In the first six months of 2024, the company generated US$78 million in net income and US$110 million in adjusted EBITDA.

Sally Beauty reported a 1.2% year-over year jump in quarterly net sales to US$942 million.“In the year since our IPO we have established a strong track record of delivering on our commitments: beating our financial targets every quarter since our IPO, breaking new records in our scale and profitability, and continuing to invest in future initiatives to ensure high long term growth,” details Holtzman.

“To add value to our shareholders, and with our board’s authorization, we have begun using our strong balance sheet for share buybacks.” 

Oddity posted “excellent and profitable” growth at Il Makiage and SpoiledChild brands across markets and products, while continuing to build the Oddity Labs molecule discovery platform, scaling teams and building processes.

“We are pleased with our financial results for the second quarter, which beat our guidance across revenue, gross margin, adjusted EBITDA and adjusted diluted EPS,” says Lindsay Drucker Mann, Oddity’s global CFO. 

Sally Beauty gains traction

Sally Beauty Holdings, specializing in professional hair color, reported a 1.2% year-over year jump in quarterly net sales to US$942 million. Consolidated comparable sales also rose 1.5% thanks, in part, to enhanced new and reactivated customer trends at Sally Beauty.

“We are pleased to report solid third-quarter results, including positive comparable sales in both our Sally Beauty and Beauty Systems Group segments,” says Denise Paulonis, president and CEO of the brand. “At Sally Beauty, we saw positive consumer response to our performance marketing efforts, marketplace expansions and digital enhancements.”

“These strategic initiatives among others have driven improving trends in new and reactivated customers. Turning to BSG, continued focus on innovation and territory expansion drove a third consecutive quarter of positive comparable sales. Adjusted gross margin remained strong at 51% and adjusted operating margin of 8.9% exceeded our guidance.”

Paulonis adds: “We continued to return capital to shareholders through our share repurchase program in the quarter, made progress on our fuel for growth initiative and remain focused on driving long-term profitable growth and shareholder value.”

Sally Beauty recently ramped up its digital presence in an Instacart partnership offering same-day delivery in “as fast as an hour” from more than 2,200 Sally Beauty store locations across the US. Customers can choose from over 7,000 items, including hair, skin and nail care products from proprietary brands.

By Benjamin Ferrer