UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED: MARCH 31, 2025
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File No. 1-33145
SALLY BEAUTY HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware
36-2257936
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
3001 Colorado Boulevard
Denton, Texas
76210
(Address of principal executive offices)
(Zip Code)
(800) 777-5706
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, $0.01 par value
SBH
The New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Number of shares of common stock outstanding as of May 5, 2025: 100,894,229
TABLE OF CONTENTS
Page
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
4
Condensed Consolidated Balance Sheets
Condensed Consolidated Statements of Earnings
5
Condensed Consolidated Statements of Comprehensive Income
6
Condensed Consolidated Statements of Stockholders’ Equity
7
Condensed Consolidated Statements of Cash Flows
8
Notes to Condensed Consolidated Financial Statements
9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
16
Item 3. Quantitative and Qualitative Disclosures About Market Risk
23
Item 4. Controls and Procedures
PART II — OTHER INFORMATION
Item 1. Legal Proceedings
24
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.
Item 5. Other Information
Item 6. Exhibits
25
2
In this Quarterly Report, references to the "Company,” “Sally Beauty,” “our company,” “we,” “our,” “ours” and “us” refer to Sally Beauty Holdings, Inc. and its consolidated subsidiaries unless otherwise indicated or the context otherwise requires.
cautionary notice regarding forward-looking statements
Statements in this Quarterly Report on Form 10-Q and in the documents incorporated by reference herein that are not purely historical facts or that depend upon future events may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"). Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” or similar expressions may also identify such forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements. The most important factors that could cause our actual results to differ from our forward-looking statements are set forth in our description of risk factors in Item 1A contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, which should be read in conjunction with the forward-looking statements in this report. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement.
The events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. As a result, our actual results may differ materially from the results contemplated by these forward-looking statements.
3
Item 1. Financial Statements.
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
(In thousands, except par value data)
March 31,2025
September 30,2024
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
92,174
107,961
Trade accounts receivable, net
27,323
33,635
Accounts receivable, other
67,690
58,553
Inventory
1,006,604
1,036,624
Other current assets
45,322
68,541
Total current assets
1,239,113
1,305,314
Property and equipment, net of accumulated depreciation of $892,411 at March 31, 2025, and $881,818 at September 30, 2024
255,996
269,872
Operating lease assets
582,794
582,573
Goodwill
534,204
538,266
Intangible assets, excluding goodwill, net of accumulated amortization of $34,739 at March 31, 2025, and $33,761 at September 30, 2024
55,790
59,960
Other assets
37,976
36,914
Total assets
2,705,873
2,792,899
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt
4,041
4,127
Accounts payable
217,490
269,424
Accrued liabilities
151,171
162,950
Current operating lease liabilities
153,941
136,068
Income taxes payable
6,648
20,100
Total current liabilities
533,291
592,669
Long-term debt
902,794
978,255
Long-term operating lease liabilities
461,351
479,616
Other liabilities
20,969
22,066
Deferred income tax liabilities, net
87,652
91,758
Total liabilities
2,006,057
2,164,364
Stockholders’ equity:
Common stock, $0.01 par value. Authorized 500,000 shares; 100,894 and 101,854 shares issued and shares outstanding at March 31, 2025, and September 30, 2024, respectively
1,009
1,019
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued
—
Accumulated earnings
826,154
740,685
Accumulated other comprehensive loss, net of tax
(127,347
)
(113,169
Total stockholders’ equity
699,816
628,535
Total liabilities and stockholders’ equity
The accompanying notes are an integral part of these condensed consolidated financial statements.
(In thousands, except per share data)
Three Months Ended
Six Months Ended
March 31,
2025
2024
Net sales
883,146
908,361
1,821,041
1,839,663
Cost of goods sold
424,329
445,289
885,384
909,415
Gross profit
458,817
463,072
935,657
930,248
Selling, general and administrative expenses
389,444
403,435
765,964
801,573
Restructuring
63
(22
Operating earnings
69,373
59,574
169,693
128,697
Interest expense
16,289
20,523
33,731
37,837
Earnings before provision for income taxes
53,084
39,051
135,962
90,860
Provision for income taxes
13,874
9,807
35,739
23,226
Net earnings
39,210
29,244
100,223
67,634
Earnings per share:
Basic
0.39
0.28
0.98
0.64
Diluted
0.38
0.27
0.96
0.63
Weighted-average shares:
101,614
104,276
101,820
105,117
104,435
107,080
104,682
107,881
(In thousands)
Other comprehensive income (loss):
Foreign currency translation adjustments
10,791
(6,928
(15,824
7,449
Interest rate swap, net of tax
(407
1,584
744
(1,504
Foreign exchange contracts, net of tax
(581
468
902
(13
Other comprehensive income (loss), net of tax
9,803
(4,876
(14,178
5,932
Total comprehensive income
49,013
24,368
86,045
73,566
Accumulated
Additional
Other
Total
Common Stock
Paid-in
Comprehensive
Stockholders’
Shares
Amount
Capital
Earnings
Loss
Equity
Balance at September 30, 2024
101,854
61,013
Other comprehensive loss
(23,981
Share-based compensation
6,053
Stock issued for equity awards
1,162
12
69
81
Employee withholding taxes paid related to net share settlement
(392
(4
(5,260
(5,264
Repurchases and cancellations of common stock
(753
(8
(862
(9,078
(9,948
Balance at December 31, 2024
101,871
792,620
(137,150
656,489
4,238
112
1
321
322
(1
(7
(1,088
(11
(4,552
(5,676
(10,239
Balance at March 31, 2025
100,894
Balance at September 30, 2023
106,266
1,063
5,677
624,772
(122,764
508,748
38,390
Other comprehensive income
10,808
5,118
722
209
216
(192
(2
(1,738
(1,740
(1,939
(19
(9,266
(10,915
(20,200
Balance at December 31, 2023
104,857
1,049
652,247
(111,956
541,340
3,964
184
1,396
1,398
(20
(1,526
(15
(5,341
(14,844
Balance at March 31, 2024
103,514
1,035
666,647
(116,832
550,850
Six Months Ended March 31,
Cash Flows from Operating Activities:
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
50,924
55,017
Share-based compensation expense
10,291
9,082
Amortization of deferred financing costs
1,092
1,272
Loss on early extinguishment of debt
759
2,037
Impairment of long-lived assets
1,779
Loss (gain) on disposal of equipment and other property
(26,641
Deferred income taxes
(4,581
171
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable
5,779
(1,054
(9,751
(10,141
20,759
(59,741
6,138
(1,412
666
(1,792
Operating leases, net
(509
(2,072
Accounts payable and accrued liabilities
(57,761
32,314
(13,583
(1,842
(1,063
(1,516
Net cash provided by operating activities
84,521
87,960
Cash Flows from Investing Activities:
Payments for property and equipment
(38,971
(44,659
Proceeds from sale of property and equipment, net
43,574
Acquisitions, net of cash acquired
(371
(218
Net cash provided (used) by investing activities
4,232
(44,877
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt and ABL facility
351,000
1,056,000
Repayments of long-term debt and ABL facility
(428,079
(1,076,054
Debt issuance costs
(1,525
(8,332
Proceeds from equity awards
403
1,614
Payments for common stock repurchased
(20,187
(40,400
Employee withholding taxes paid related to net share settlement of equity awards
(5,271
(1,760
Net cash used by financing activities
(103,659
(68,932
Effect of foreign exchange rate changes on cash and cash equivalents
(881
22
Net decrease in cash and cash equivalents
(15,787
(25,827
Cash and cash equivalents, beginning of period
123,001
Cash and cash equivalents, end of period
97,174
Supplemental Cash Flow Information:
Interest paid
33,344
48,253
Income taxes paid
55,815
32,007
Capital expenditures incurred but not paid
6,999
16,992
Sally Beauty Holdings, Inc. and Subsidiaries
1. Significant Accounting Policies
Basis of Presentation
The unaudited condensed consolidated interim financial statements of Sally Beauty Holdings, Inc. and its subsidiaries included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC, although we believe that the disclosures included herein are adequate for the interim period presented. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments that are of a normal recurring nature and that are necessary to present fairly our consolidated financial position as of March 31, 2025, and September 30, 2024, our consolidated results of operations, consolidated comprehensive income, consolidated statements of stockholders’ equity for the three and six months ended March 31, 2025 and 2024, and consolidated cash flows for the six months ended March 31, 2025 and 2024.
Principles of Consolidation
The unaudited condensed consolidated interim financial statements include all accounts of Sally Beauty Holdings, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. All amounts are in U.S. Dollars.
Accounting Policies
We adhere to the same accounting policies in the preparation of our condensed consolidated interim financial statements as we do in the preparation of our full year consolidated financial statements. As permitted under GAAP, interim accounting for certain expenses, including income taxes, is based on full-year assumptions. For interim financial reporting purposes, income taxes are recorded based upon our estimated annual effective income tax.
Use of Estimates
In order to present our financial statements in conformity with GAAP, we are required to make certain estimates and assumptions that impact our interim financial statements and supplementary disclosures. These estimates may use forecasted financial information based on reasonable information available, however they are subject to change in the future. Significant estimates and assumptions are part of our accounting for sales allowances, deferred revenue, valuation of inventory, amortization and depreciation, intangibles and goodwill, and other reserves. We believe these estimates and assumptions are reasonable; however, they are based on management’s current knowledge of events and actions, and changes in facts and circumstances may result in revised estimates and impact actual results.
2. Recent Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, to enhance segment disclosures for annual and interim consolidated financial statements, including significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”). The amendments in the update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, but we currently do not expect to early adopt this standard. The new standard is not expected to have a material impact on our consolidated financial statements; however, we expect to provide additional detail and disclosures upon adoption.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to expand disclosures in an entity’s income tax rate reconciliation table and the disaggregation of taxes paid in U.S. and foreign jurisdictions. The amendments in this update are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of this update, but we do not expect the update to impact our consolidated results of operations or financial position.
In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income (Topic 220-40): Expense Disaggregation Disclosures, that requires, among other things, more detailed disclosure about types of expenses in commonly presented expense captions such as cost of goods sold and selling, general and administrative expenses. The update is intended to improve disclosures by providing amounts recognized for the purchases of inventory, employee compensation, depreciation, and amortization. The amendments in this update are effective for fiscal years beginning after December 15, 2026, and interim periods
within fiscal years beginning after December 15, 2027. We are currently evaluating the impact of this update to our consolidated financial statements and disclosures.
3. Revenue Recognition
Substantially all of our revenue is derived through the sale of merchandise at the point-of-sale in our stores or when products are shipped for e-commerce orders. Revenue is recognized net of estimated sales returns and sales taxes. We estimate sales returns based on historical data.
Changes to our contract liabilities, which are included in accrued liabilities in our condensed consolidated balance sheets, were as follows (in thousands):
Beginning Balance
11,493
14,038
Loyalty points and gift cards issued but not redeemed, net of estimated breakage
4,545
8,700
Revenue recognized from beginning liability
(4,618
(9,997
Ending Balance
11,420
12,741
See Note 12, Segment Reporting, for additional information regarding the disaggregation of our sales revenue.
4. Fair Value Measurements
We measure on a recurring basis and disclose the fair value of our financial instruments under the provisions of ASC Topic 820, Fair Value Measurement, as amended (“ASC 820”). We define “fair value” as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level hierarchy for measuring fair value and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. This valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date.
The three levels of that hierarchy are defined as follows:
Level 1 - Quoted prices are available in active markets for identical assets or liabilities;
Level 2 - Pricing inputs are other than quoted prices in active markets, included in Level 1, that are either directly or indirectly observable; and
Level 3 - Unobservable pricing inputs in which little or no market activity exists, therefore requiring an entity to develop its own model with estimates and assumptions.
Financial instruments measured at fair value on recurring basis
Consistent with the fair value hierarchy, we categorized our financial assets and liabilities as follows:
(in thousands)
Classification
Fair Value Hierarchy Level
Financial Assets:
Foreign exchange contracts
Designated cash flow hedges
Level 2
614
Non-designated cash flow hedges
195
1,207
Interest rate swap
365
1,174
.
Financial Liabilities:
111
843
1,485
Other Liabilities
635
954
2,120
The fair value of each asset and liability were measured using widely accepted valuation techniques, including discounted cash flow analyses and observable inputs, such as market interest rates and foreign exchange rates.
10
Other fair value disclosures
The carrying amounts, if any, of cash equivalents, trade and other accounts receivable, and accounts payable and borrowing under our $500 million asset-based senior secured loan facility (the “ABL facility”) approximate their respective fair values due to the short-term nature of these financial instruments. Carrying amounts and the related estimated fair value of our long-term debt, excluding finance lease obligations, debt issuance costs and original issue discounts, are as follows:
Fair Value
March 31, 2025
September 30, 2024
Hierarchy Level
Carrying Value
Long-term debt, excluding finance lease obligations
2032 Senior Notes
600,000
601,500
615,000
Term Loan B
317,000
315,811
394,000
393,508
Total long-term debt
917,000
917,311
994,000
1,008,508
The fair value of our senior notes was measured using unadjusted quoted market prices. The fair value of our Term Loan B agreement was measured using unadjusted quoted market prices for similar debt securities in active markets.
5. Stockholders’ Equity
Share Repurchases
In August 2017, our Board of Directors (“Board”) approved a share repurchase program authorizing us to repurchase up to $1.0 billion of our common stock, subject to certain limitations governed by our debt agreements. In July 2021, our Board approved a term extension of our share repurchase program to September 30, 2025. As of March 31, 2025, we had approximately $500.8 million of additional share repurchase authorizations remaining under our share repurchase program. For the three and six months ended March 31, 2025, we repurchased 1.1 million shares and 1.8 million shares of our common stock at a total cost of $10.0 million and $20.0 million, respectively, excluding the impact of excise taxes. For the three and six months ended March 31, 2024, we repurchased 1.5 million shares and 3.5 million shares of our common stock at a total cost of $20.0 million and $40.0 million, respectively, excluding the impact of excise taxes.
Accumulated Other Comprehensive Loss
The change in accumulated other comprehensive loss (“AOCL”) was as follows (in thousands):
Foreign Currency Translation Adjustments
Interest Rate Swap
Foreign Exchange Contracts
(112,409
(431
(329
Other comprehensive income (loss) before reclassification, net of tax
1,432
969
(13,423
Reclassification to net earnings, net of tax
(688
(67
(755
(128,233
313
573
The tax impacts for the changes in other comprehensive income (loss) and the reclassifications to net earnings were not material.
6. Weighted-Average Shares
The following table sets forth the reconciliation of basic and diluted weighted-average shares (in thousands):
Three Months EndedMarch 31,
Six Months EndedMarch 31,
Weighted-average basic shares
Dilutive securities:
Stock option and stock award programs
2,821
2,804
2,862
2,764
Weighted-average diluted shares
Anti-dilutive options excluded from our computation of diluted shares
1,528
1,733
1,754
11
7. Property and Equipment, Net
During the six months ended March 31, 2025, we sold our corporate headquarters located in Denton, Texas to Denton County, Texas for $45.5 million, excluding $1.5 million in closing costs. As of September 30, 2024, the assets included in the sale were classified as held for sale within other current assets on our condensed consolidated balance sheet. As a result of the sale, we recognized a gain of approximately $26.6 million within selling, general and administrative expenses in our condensed consolidated statements of earnings. Additionally, we entered into a lease agreement with Denton County, Texas, to lease the building for $35,000 per month for twelve months, with the option to extend three additional months.
8. Goodwill and Intangible Assets
During the three months ended March 31, 2025, we completed our annual assessments for impairment of goodwill and indefinite-lived intangible assets. For our goodwill testing, we performed a qualitative analysis and determined that there was no indication of impairment requiring further quantitative testing. For our indefinite-lived intangible asset assessment, we performed a quantitative analysis and determined a trade name within the SBS reporting segment, as defined below, was fully impaired and recorded a $1.8 million impairment loss within selling, general, and administrative expenses. No material impairment losses were recognized in the prior periods presented in connection with our goodwill and intangible assets.
Goodwill allocated to our Sally Beauty Supply ("SBS") and Beauty Systems Group ("BSG") reporting units, which are also defined as our SBS and BSG segments, was $85.9 million and $448.3 million, respectively, as of March 31, 2025.
Intangible assets amortization expense
841
791
1,699
1,651
For the six months ended March 31, 2025, changes in goodwill reflect the effects of foreign currency exchange rates of $4.4 million and adjustments of $0.4 million from the completion of our Exclusive Beauty Supply, Inc. acquisition fair value assessment. Additionally, the changes to other intangibles include the effects of foreign currency exchange rates of $0.7 million.
9. Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
Compensation and benefits
66,515
76,649
Deferred revenue
16,923
16,080
Accrued freight
10,724
8,240
Rental obligations
10,488
11,039
Insurance reserves
7,302
7,526
Interest payable
3,991
4,108
Operating accruals and other
35,228
39,308
Total accrued liabilities
10. Short-term and Long-term Debt
In December 2024, the Company and other parties to the ABL facility entered into a fifth amendment which, among other things, extended the maturity date to December 11, 2029, improved certain covenant terms, and slightly increased our commitment fee to 0.25% from 0.20%. At March 31, 2025, there were no outstanding borrowings under our ABL facility, and we had $482.7 million available for borrowing, including under our Canadian sub-facility, subject to a borrowing base limitation, as reduced by outstanding letters of credit. In connection with the amendment, we incurred approximately $1.5 million in debt issuance costs that are being amortized over the remaining life of the ABL facility.
Additionally, during the three months ended December 31, 2024 and March 31, 2025, we voluntarily repaid $40.0 million and $35.0 million, respectively, of outstanding Term Loan B principle. In connection with the repayments, we recognized a $0.7 million loss on debt extinguishment within interest expense related to unamortized debt issuance costs for the six months ended March 31, 2025.
11. Derivative Instruments and Hedging Activities
During the six months ended March 31, 2025, we did not purchase or hold any derivative instruments for trading or speculative purposes. See Note 4, Fair Value Measurements, for the classification and fair value of our derivative instruments.
Designated Cash Flow Hedges
Foreign Currency Forwards
We regularly enter into foreign currency forwards to mitigate our exposure to exchange rate changes on forecasted inventory purchases in U.S. dollars by our foreign subsidiaries. At March 31, 2025, we held forwards, which expire ratably through September 30, 2025, with a notional amount, based upon exchange rates at March 31, 2025, as follows (in thousands):
Notional Currency
Notional Amount
Mexican Peso
11,007
Canadian Dollar
5,785
Euro
2,971
19,763
The changes in fair value related to these foreign currency forwards are recorded quarterly into AOCL. As the forwards are exercised, the realized value is recognized into cost of goods sold (“COGS”), based on inventory turns, in our condensed consolidated statements of earnings. For the three months ended March 31, 2025 and 2024, we recognized gains of $0.3 million and losses of $0.6 million, respectively. For the six months ended March 31, 2025 and 2024, we recognized gains of $0.1 million and losses of $2.0 million, respectively. Based on March 31, 2025, valuations and exchange rates, we expect to reclassify gains of approximately $1.0 million out of AOCL and into COGS over the next 12 months.
In April 2023, we entered into a three-year interest rate swap with an initial notional amount of $200 million (the “interest rate swap”) to mitigate the exposure to higher interest rates in connection with our Term Loan B due in 2030. The interest rate swap involves fixed monthly payments at the contract rate of 3.705%, and in return, we will receive a floating interest payment based on the 1-month Adjusted Term SOFR Rate. The interest rate swap will mature in April 2026 and is designated as a cash flow hedge. Changes in the fair value of the interest rate swap are recorded quarterly, net of income tax, and included in AOCL.
Each month, we recognize either income or expense, based on the position of the interest rates, into interest expense on our condensed consolidated statements of earnings related to the interest rate swap. For the three months ended March 31, 2025 and 2024, we recognized income of $0.4 million and $0.8 million, respectively. For the six months ended March 31, 2025 and 2024, we recognized income of $0.9 million and $1.7 million, respectively. At March 31, 2025, we expect to reclassify gains of approximately $0.4 million out of AOCL and into interest expense over the next 12 months.
Non-Designated Derivative Instruments
We also use foreign exchange contracts to mitigate our exposure to exchange rate changes in connection with certain intercompany balances not permanently invested. At March 31, 2025, we held forwards, which settle on various dates in the first month of the next two fiscal quarters, with a notional amount, based upon exchange rates at March 31, 2025, as follows (in thousands):
British Pound
31,487
11,056
9,351
9,110
61,004
We record changes in fair value and realized gains or losses related to these foreign currency forwards into selling, general and administrative expenses. For the three months ended March 31, 2025 and 2024, the effects of these foreign exchange contracts on our condensed consolidated financial statements were losses of $0.7 million and $0.3 million, respectively. For the six months ended March 31, 2025 and 2024, the effects of these foreign exchange contracts on our condensed consolidated financial statements were gains of $1.0 million and losses of $1.6 million, respectively.
13
12. Segment Reporting
Segment data for the three and six months ended March 31, 2025 and 2024, is as follows (in thousands):
Three Months Ended March 31,
Net sales:
SBS
500,575
513,241
1,026,021
1,036,479
BSG
382,571
395,120
795,020
803,184
Earnings before provision for income taxes:
Segment operating earnings:
77,305
76,820
157,179
154,449
43,934
43,015
94,403
87,642
Segment operating earnings
121,239
119,835
251,582
242,091
Unallocated expenses (a)
51,866
60,198
81,889
113,416
Consolidated operating earnings
Sales between segments, which are eliminated in consolidation, were not material during the three and six months ended March 31, 2025 and 2024.
14
Disaggregation of net sales by segment
Periodically, we make minor adjustments to our product hierarchy, which impacts the roll-up of our merchandise categories. As a result, certain prior year amounts have been reclassified to conform to current year presentation. The following tables disaggregate our segment revenues by merchandise category.
Hair color
42.3
%
39.6
41.3
39.2
Hair care
23.6
25.2
23.7
24.6
Styling tools and supplies
16.2
17.0
16.8
17.6
Nail
10.0
9.9
Skin and cosmetics
7.4
7.9
7.6
8.0
Other beauty items
0.5
0.4
0.6
100.0
42.8
41.5
41.4
40.4
40.9
41.8
41.9
42.4
10.5
10.6
10.7
3.4
3.5
3.6
3.9
2.2
2.3
2.4
0.2
0.3
The following tables disaggregate our segment revenue by sales channels:
Company-operated stores
91.8
93.4
92.0
93.3
E-commerce
8.2
6.6
6.7
69.3
67.8
69.4
68.2
13.9
14.1
14.0
Distributor sales consultants
9.3
9.5
Franchise stores
7.5
7.1
7.3
15
This section discusses management’s view of the financial condition, results of operations and cash flows of Sally Beauty for the periods covered by this Quarterly Report. This section should be read in conjunction with the information contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, including the Risk Factors sections therein, and information contained elsewhere in this Quarterly Report, including the condensed consolidated interim financial statements and notes to those financial statements.
Financial Summary for the Three Months Ended March 31, 2025
Comparable Sales
We believe that comparable sales is an appropriate performance indicator to measure our sales growth compared to the prior period. Our comparable sales include sales from stores that have been operating for 14 months or longer as of the last day of a month and from e-commerce revenue. Additionally, comparable sales include sales to franchisees and full service sales. Our comparable sales excludes the effect of changes in foreign exchange rates and sales from stores relocated until 14 months after the relocation. Revenue from acquired stores is excluded from our comparable sales calculation until 14 months after the acquisition. Our calculation of comparable sales might not be the same as other retailers as the calculation varies across the retail industry.
Overview
Key Operating Metrics
The following table sets forth, for the periods indicated, information concerning key measures on which we rely to evaluate our operating performance (dollars in thousands):
Increase (Decrease)
(12,666
(2.5
)%
(10,458
(1.0
(12,549
(3.2
(8,164
Consolidated
(25,215
(2.8
(18,622
Gross profit:
306,397
307,578
(1,181
(0.4
619,653
614,138
5,515
0.9
152,420
155,494
(3,074
(2.0
316,004
316,110
(106
0.0
(4,255
(0.9
5,409
Segment gross margin:
61.2
59.9
130
bps
60.4
59.3
110
39.8
39.4
40
39.7
30
52.0
51.0
100
51.4
50.6
80
Net earnings:
485
2,730
1.8
919
2.1
6,761
7.7
1,404
1.2
9,491
Unallocated expenses and restructuring(a)
60,261
(8,395
(13.9
113,394
(31,505
(27.8
9,799
16.4
40,996
31.9
(4,234
(20.6
(4,106
(10.9
14,033
35.9
45,102
49.6
4,067
12,513
53.9
9,966
34.1
32,589
48.2
Comparable sales growth (decline):
(0.3
(4.0
370
0.8
(3.0
380
(2.7
2.0
(470)
(0.6
1.3
(190)
(1.3
(1.5
20
(1.1
Number of stores at end-of-period (including franchises):
3,117
3,134
(17
(0.5
1,329
1,334
(5
4,446
4,468
17
Results of Operations
The Three Months Ended March 31, 2025, compared to the Three Months Ended March 31, 2024
Net Sales
SBS. The decrease in net sales for SBS was primarily driven by the following (in thousands):
Comparable sales
(1,322
Sales outside comparable sales (a)
(3,559
Foreign currency exchange
(7,785
SBS’s net sales decrease was driven primarily by the negative impacts from foreign exchange rates, net closed stores, and lower comparable sales. The decrease in comparable sales was primarily a result of external factors that impacted consumer spending, including weather, an unusually harsh flu season and macro uncertainty, partially offset by strong growth in hair color and digital marketplaces.
BSG. The decrease in net sales for BSG was primarily driven by the following (in thousands):
(10,533
(138
(1,878
BSG’s net sales decrease was primarily reflecting external factors that impacted stylist purchasing behavior, including weather, an unusually harsh flu season and macro uncertainty and a negative impact from foreign exchange rates, partially offset by continued momentum from expanded distribution and new brand innovation.
Gross Profit
SBS. SBS’s gross profit decreased for the three months ended March 31, 2025, as a result of lower net sales, partially offset by a higher gross margin. SBS’s gross margin improvement was driven primarily by lower distribution and freight costs, higher product margins resulting from enhanced promotional strategies and benefits from our Fuel for Growth initiative, and lower shrink expense.
BSG. BSG’s gross profit decreased for the three months ended March 31, 2025, as a result of lower net sales, partially offset by a higher gross margin. BSG’s gross margin improvement was driven by lower distribution and freight costs and lower shrink expense, partially offset by lower product margins related to brand mix
Selling, General and Administrative Expenses
SBS. SBS’s selling, general and administrative expenses decreased $1.7 million, or 0.7%, for the three months ended March 31, 2025, and included a favorable impact from foreign exchange rates of $3.4 million. As a percentage of SBS net sales, selling, general and administrative expenses for the three months ended March 31, 2025, were 45.8%, compared to 45.0% for the three months ended March 31, 2024. The increase as a percentage of sales was primarily due to deleveraging resulting from lower net sales, an impairment charge related to a trade name (non-cash expense of $1.8 million), and higher labor and other compensation-related expenses, partially offset by lower advertising expense.
BSG. BSG’s selling, general and administrative expenses decreased $4.0 million, or 3.5%, for the three months ended March 31, 2025. As a percentage of BSG net sales, selling, general and administrative expenses for the three months ended March 31, 2025, were 28.4% compared to 28.5% for the three months ended March 31, 2024. The decrease as a percentage of sales was primarily due to a decrease in depreciation expenses, partially offset by higher labor and other compensation-related expenses.
Unallocated. Unallocated selling, general and administrative expenses, which represent certain corporate costs that have not been charged to our reporting segments, decreased $8.3 million, or 13.8%, for the three months ended March 31, 2025, primarily due to lower professional fees and severance costs in connection to our Fuel for Growth initiative, lower labor and other compensation-related expenses, and savings generated from our Fuel for Growth initiative.
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Interest Expense
The decrease in interest expense was driven by a lower outstanding principle balance and interest rate on our Term Loan B, lower losses on debt extinguishment, and lower interest costs related to our senior notes as we incurred interest costs on both our current 2032 Senior Note and our prior 2025 Senior Notes for the brief redemption notice period in the prior year.
Provision for Income Taxes
The effective tax rate was 26.1% and 25.1% for the three months ended March 31, 2025 and 2024, respectively. The increase in the effective tax rate was primarily due to foreign operations and federal tax credits in the prior year.
In December of 2021, the Organization for Economic Cooperation and Development (OECD) established a framework, referred to as Pillar 2, designed to ensure large multinational enterprises pay a minimum 15 percent level of tax on the income arising in each jurisdiction in which they operate. The earliest effective date is for taxable years beginning after December 31, 2023, which for us is fiscal year 2025. Numerous jurisdictions in which Sally Beauty operates have enacted the OECD model rules or drafted legislation, including Belgium, Canada, France, Germany, Ireland, Italy, Netherlands, Spain, and the United Kingdom. The United States is not subject to Pillar 2. We do not expect this legislation to have a material impact on our consolidated financial statements. We will continue to monitor and evaluate new legislation and guidance, which could change our current assessment.
The Six Months Ended March 31, 2025, compared to the Six Months Ended March 31, 2024
7,604
(5,564
(12,498
SBS’s net sales decrease was primarily driven by negative impacts from foreign exchange rates and net stores closed during the prior 12 months, partially offset by an increase in comparable sales. The increase in comparable sales was primarily driven by strong growth in hair color and digital marketplaces, partially offset by external factors that impacted consumer spending, including weather, an unusually harsh flu season and macro uncertainty.
(4,754
(543
(2,867
BSG’s net sales decrease was primarily driven by reflecting external factors that impacted stylist purchasing behavior, including weather, an unusually harsh flu season and macro uncertainty, and negative impacts from foreign exchange rates, partially offset by continued momentum from expanded distribution and new brand innovation.
SBS. SBS’s gross profit increased for the six months ended March 31, 2025, as a result of lower net sales, partially offset by a higher gross margin. SBS’s gross margin improvement was primarily driven by lower distribution and freight costs, higher product margins, resulting from enhanced promotional strategies and benefits from our Fuel for Growth initiative, and lower shrink expense.
BSG. BSG’s gross profit was relatively unchanged for the six months ended March 31, 2025, as a result of fewer net sales, partially offset by a higher gross margin. BSG’s gross margin improvement was driven by lower distribution and freight costs from supply chain efficiencies and lower shrink expense, partially offset by lower product margins related to brand mix.
SBS. SBS’s selling, general and administrative expenses increased $2.8 million, or 0.6%, for the six months ended March 31, 2025, and included a favorable impact from foreign exchange rates of $4.9 million. As a percentage of SBS net sales, selling, general and administrative expenses for the six months ended March 31, 2025, were 45.1%, compared to 44.4% for the six months ended March 31, 2024. The increase as a percentage of sales was primarily due to increased labor and other compensation-related expenses and an impairment charge related to a trade name (non-cash expense of $1.8 million), partially offset by other Fuel for Growth benefits.
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BSG. BSG’s selling, general and administrative expenses decreased $6.9 million, or 3.0%, for the six months ended March 31, 2025. As a percentage of BSG net sales, selling, general and administrative expenses for the six months ended March 31, 2025, were 27.9% compared to 28.4% for the six months ended March 31, 2024. The decrease as a percentage of sales was primarily due to decreases in delivery expense, depreciation expense, and savings generated from our Fuel for Growth initiative.
Unallocated. Unallocated selling, general and administrative expenses, which represent certain corporate costs that have not been charged to our reporting segments, decreased $31.5 million, or 27.8%, for the six months ended March 31, 2025, primarily due to a $26.6 million gain on the sale of our corporate headquarters, lower professional fees and severance costs in connection to our Fuel for Growth initiative, and lower depreciation expense, partially offset by increased labor and other compensation-related expenses.
The effective tax rate was 26.3% and 25.6% for the six months ended March 31, 2025 and 2024, respectively. The increase in the effective tax rate was primarily due to foreign operations, offset by the tax impact of share-based compensation which was more detrimental in the prior year.
Liquidity and Capital Resources
Our principal sources of liquidity are cash from operations, cash and cash equivalents and borrowings under our ABL facility. A substantial portion of our liquidity needs arise from funding the costs of our operations, working capital, capital expenditures, debt interest and principal payments. Additionally, under our share repurchase program (see below for more details) we will from time to time repurchase shares of our common stock on the open market to return value to our shareholders. At March 31, 2025, we had $574.9 million of available liquidity, which includes $482.7 million available for borrowing under our ABL facility and cash and cash equivalents of $92.2 million.
Our working capital (current assets less current liabilities) decreased $6.8 million, to $705.8 million at March 31, 2025, compared to $712.6 million at September 30, 2024. The decrease was primarily driven by lower inventory, as a result of a strategic reduction in slower moving products and the negative impacts of foreign exchange rates of $9.2 million, the disposal of assets held for sale previously included in other current assets as a result of the sale of our corporate headquarters, and the timing of lease renewals, partially offset by the timing of accounts payable.
We anticipate that existing cash balances (excluding certain amounts permanently invested in connection with foreign operations), cash expected to be generated by operations, and funds available under our ABL facility will be sufficient to fund our working capital and capital expenditure requirements over the next twelve months.
Cash Flows
Net Cash Provided by Operating Activities
The decrease in cash provided by operating activities was primarily driven by the timing of accounts payable and income tax payments and lower cash receipts from customers, partially offset by lower inventory purchases and the timing of debt interest payments.
Net Cash Provided (Used) by Investing Activities
The change in investing activities was primarily the result of receiving $43.6 million from the sale of our corporate headquarters and lower capital expenditures as we lapped technology investments in the prior year, offset by investments in store improvements.
Net Cash Used by Financing Activities
The increase in cash used by financing activities was primarily due to the higher net paydown of our long-term debt in the current year compared to the prior year, partially offset by fewer shares repurchased in the current year under our share repurchase program and lower issuance costs related to our debt financing activities.
Debt and Guarantor Financial Information
At March 31, 2025, we had $917.0 million in outstanding debt principal, excluding finance lease obligations, unamortized debt issuance costs and debt discounts, in the aggregate, of $10.2 million. Our debt consists of $600.0 million in 2032 Senior Notes outstanding, and $317.0 million remaining on our Term Loan B. There were no outstanding borrowings under our ABL facility. See Note 10, Short-term and Long-term Debt, in Item 1 of this quarterly report for more information on our debt.
We utilize our ABL facility for the issuance of letters of credit, certain working capital and liquidity needs, and to manage normal fluctuations in our operational cash flow. In that regard, we may from time to time draw funds under the ABL facility for general corporate purposes including funding of capital expenditures, acquisitions, paying down other debt and share repurchases. Amounts drawn on our ABL facility are generally paid down with cash provided by our operating activities. During the six months ended March 31, 2025, the weighted average interest rate on our borrowings under the ABL facility was 7.3%.
We are currently in compliance with the agreements and instruments governing our debt, including our financial covenants.
Guarantor Financial Information
Our 2032 Senior Notes were issued by our wholly owned subsidiaries, Sally Holdings LLC and Sally Capital Inc. (together, the “Issuers”). The notes are unsecured debt instruments guaranteed by us and certain of our wholly owned domestic subsidiaries (together, the “Guarantors”) and have certain restrictions on the ability of our subsidiaries to make certain restrictive payments to Sally Beauty. The guarantees are joint and several, and full and unconditional. Certain other subsidiaries, including our foreign subsidiaries, do not serve as guarantors.
The following summarized consolidating financial information represents financial information for the Issuers and the Guarantors on a combined basis. All transactions and intercompany balances between these combined entities have been eliminated.
The following table presents the summarized balance sheets information for the Issuers and the Guarantors as of March 31, 2025, and September 30, 2024:
30,105
32,817
764,413
781,512
Current assets
891,647
914,686
2,054,979
2,085,179
Intercompany payable
15,367
6,939
Current liabilities
446,444
479,052
1,827,088
1,951,874
The following table presents the summarized statement of earnings information for the Issuers and the Guarantors for the six months ended March 31, 2025 (in thousands):
1,474,589
769,147
123,660
Net Earnings
92,106
Share Repurchase Programs
Under our current share repurchase program, we may from time to time repurchase our common stock on the open market. During the six months ended March 31, 2025 and 2024, we repurchased 1.1 million shares and 1.8 million shares of our common stock for $10.0 million and $20.0 million, respectively, under our share repurchase program, excluding the impact of excise taxes. See Note 5, Stockholders’ Equity, for more information about our share repurchase program.
Contractual Obligations
Other than our debt, as discussed above, there have been no material changes outside the ordinary course of our business to our contractual obligations since September 30, 2024.
Off-Balance Sheet Financing Arrangements
At March 31, 2025, and September 30, 2024, we had no off-balance sheet financing arrangements other than outstanding letters of credit related to inventory purchases and self-insurance programs.
21
Critical Accounting Estimates
There have been no material changes to our critical accounting estimates or assumptions as disclosed in Item 7. "Management Discussion and Analysis of Financial Condition and Results of Operation" in Part II on our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.
Recent Accounting Pronouncements
See Note 2 of the Notes to Condensed Consolidated Financial Statements in Item 1 – “Financial Statements” in Part I – Financial Information.
As a multinational corporation, we are subject to certain market risks including foreign currency fluctuations, interest rates and government actions. There have been no material changes to our market risks from those disclosed in Item 7A. “Quantitative and Qualitative Disclosures about Market Risk” in Part II of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.
Controls Evaluation and Related CEO and CFO Certifications. Our management, with the participation of our principal executive officer (“CEO”) and principal financial officer (“CFO”), conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2025. The controls evaluation was conducted by our Disclosure Committee, comprised of senior representatives from our finance, accounting, internal audit, and legal departments under the supervision of our CEO and CFO.
Certifications of our CEO and our CFO, which are required in accordance with Rule 13a-14 of the Exchange Act, are attached as exhibits to this Quarterly Report. This “Controls and Procedures” section includes the information concerning the controls evaluation referred to in the certifications, and it should be read in conjunction with the certifications for a more complete understanding of the topics presented.
Limitations on the Effectiveness of Controls. We do not expect that our disclosure controls and procedures will prevent all errors and all fraud. A system of controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the system are met. Because of the limitations in all such systems, no evaluation can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. Furthermore, the design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how unlikely. Because of these inherent limitations in a cost-effective system of controls and procedures, misstatements or omissions due to error or fraud may occur and not be detected.
Scope of the Controls Evaluation. The evaluation of our disclosure controls and procedures included a review of their objectives and design, our implementation of the controls and procedures and the effect of the controls and procedures on the information generated for use in this Quarterly Report. In the course of the evaluation, we sought to identify whether we had any data errors, control problems or acts of fraud and to confirm that appropriate corrective action, including process improvements, was being undertaken if needed. This type of evaluation is performed on a quarterly basis so that conclusions concerning the effectiveness of our disclosure controls and procedures can be reported in our Quarterly Reports on Form 10-Q and our Annual Reports on Form 10-K. Many of the components of our disclosure controls and procedures are also evaluated by our internal audit department, by our legal department and by personnel in our finance organization. The overall goals of these various evaluation activities are to monitor our disclosure controls and procedures on an ongoing basis and to maintain them as dynamic systems that change as conditions warrant.
Conclusions regarding Disclosure Controls. Based on the required evaluation of our disclosure controls and procedures, our CEO and CFO have concluded that, as of March 31, 2025, we maintain disclosure controls and procedures that are effective in providing reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting. During our most recent fiscal quarter there have been no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
We are involved, from time to time, in various claims and lawsuits incidental to the conduct of our business in the ordinary course. We carry insurance coverage in such amounts in excess of our self-insured retention as we believe to be reasonable under the circumstances and that may or may not cover any or all of our liabilities in respect of these matters. We do not believe that the ultimate resolution of these matters will have a material adverse impact on our consolidated financial position, cash flows or results of operations.
We are subject to a number of U.S., federal, state and local laws and regulations, as well as the laws and regulations applicable in each foreign country or jurisdiction in which we do business. These laws and regulations govern, among other things, the composition, packaging, labeling and safety of the products we sell, the methods we use to sell these products and the methods we use to import these products. We believe that we are in material compliance with such laws and regulations, although no assurance can be provided that this will remain true going forward.
In addition to the other information set forth in this Quarterly Report, you should carefully consider the factors contained in Item 1A. “Risk Factors” in Part I of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, which could materially affect our business, financial condition or future results. There have been no material changes from the risk factors disclosed in such Annual Report. The risks described in such Annual Report and herein are not the only risks facing our company.
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities
Information regarding shares of common stock we repurchased during the quarter ended March 31, 2025, excluding the impact of excise taxes, is as follows:
Fiscal Period
Total Number of Shares Purchased (1)(3)
Average Price Paid per Share (2)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)(3)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
Jan 1 - Jan 31, 2025
510,792,456
Feb 1 - Feb 28, 2025
426,613
9.32
506,816,515
Mar 1 - Mar 31, 2025
661,549
9.11
500,792,460
Total this quarter
1,088,162
9.19
During the quarter ended March 31, 2025, no director or officer of the Company adopted, modified, or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as such terms are defined in Item 408(a) of Regulation S-K.
Exhibit No.
Description
3.1
Third Restated Certificate of Incorporation of Sally Beauty Holdings, Inc., dated January 30, 2014, which is incorporated herein by reference from Exhibit 3.3 to the Company’s Current Report on Form 8-K filed on January 30, 2014
3.2
Amended and Restated Bylaws of Sally Beauty Holdings, Inc., dated April 26, 2017, which is incorporated herein by reference from Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on April 28, 2017
List of Subsidiary Guarantors*
31.1
Rule 13a-14(a)/15d-14(a) Certification of Denise Paulonis*
31.2
Rule 13a-14(a)/15d-14(a) Certification of Marlo M. Cormier*
32.1
Section 1350 Certification of Denise Paulonis*
32.2
Section 1350 Certification of Marlo M. Cormier*
101
The following financial information from our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2025, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets; (ii) the Condensed Consolidated Statements of Earnings; (iii) the Condensed Consolidated Statements of Comprehensive Income; (iv) the Condensed Consolidated Statements of Stockholders’ Equity; (v) the Condensed Consolidated Statements of Cash Flows; and (vi) the Notes to Condensed Consolidated Financial Statements.
104
The cover page from our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2025, formatted in iXBRL (contained in Exhibit 101).
* Included herewith
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
(Registrant)
Date: May 12, 2025
By:
/s/ Marlo M. Cormier
Marlo M. Cormier
Senior Vice President, Chief Financial Officer
For the Registrant and as its Principal Financial Officer
26