High-tech company unveils game-changing alternative to traditional rubber tires: 'Attests to the responsible management … from plantation to factory'
The new Pirelli P Zero is the first standard-production tire "for the global market made with over 70% bio-based and recycled materials," according to a Pirelli press release.
The 22-inch tires, designed specifically for Jaguar Land Rover, incorporate steel recycled from scrap metal, oils from end-of-life tires, silica derived from rice husks, and Forest Stewardship Council-certified natural rubber, Pirelli said.
The tires also use bio-circular polymers made out of used cooking oil and plant-based plasticizers.
All of these advancements significantly reduce the amount of dirty-fuel-based materials used in the tire but without compromising the tire's ultra-high-performance rating, according to Pirelli.
The production, wear, and disposal of automobile tires take a significant, yet often overlooked, toll on public health and the environment.
"Global dependence on tires produced from natural rubber and petroleum-based compounds, including plastics, represents a persistent and complex environmental problem with only partial and often-times, ineffective solutions," the EPA said in a risk assessment.
The production and use of automobile tires produce heavy metals and other toxins that are released into the environment as "chemical cocktails," per the EPA.
"Tire dust emitted during use is a major component of urban runoff and a source of unique and highly potent toxic substances, many of which are currently unknown or poorly described," the EPA risk assessment found.
That Pirelli engineers have succeeded in developing an ultra-high-performance, 22-inch tire suitable for the luxury market while using 70% recycled and plant-based materials serves as proof that more environmentally friendly tires are possible.
What factor would make you most likely to get an induction stove?
Energy savings
Faster cook time
Cleaner air when cooking
Government incentives
Click your choice to see results and speak your mind.
In 2021, Pirelli manufactured its first tire using Forest Stewardship Council-certified rubber, and the company has said that all of its European manufacturing facilities will be FSC-certified by 2026.
"This certification attests to the responsible management of the natural rubber supply chain, from plantation to factory," Pirelli said in its press release.
The new Pirelli P Zero will be available on select 22-inch Range Rover wheel options, the company said.
Join our free newsletter for weekly updates on the latest innovations improving our lives and shaping our future, and don't miss this cool list of easy ways to help yourself while helping the planet.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
2 minutes ago
- Bloomberg
Attestor Alumnus Pietro Stella Opens Fund to Raise €250 Million
Fedaia Partners, a London-based alternative investment firm founded by former Attestor partner Pietro Stella in 2020, is seeking to raise €250 million ($289 million) in its first external fundraising. Fedaia is looking for external capital for its strategy focused on below-par investments in European asset-based special situations, according to a person familiar with the matter. The first closing is expected at the end of September, the person added, asking not to be identified discussing a private matter.
Business Wire
an hour ago
- Business Wire
Sally Beauty Holdings Reports Third Quarter Fiscal 2025 Results
DENTON, Texas--(BUSINESS WIRE)--Sally Beauty Holdings, Inc. (NYSE: SBH) (the 'Company'), the leader in professional hair color, today announced financial results for its third quarter ended June 30, 2025. The Company will hold a conference call today at 7:30 a.m. Central Time to discuss these results and its business. Fiscal 2025 Third Quarter Summary Consolidated net sales of $933 million, a decrease of 1.0% compared to the prior year; Consolidated comparable sales decrease of 0.4%; Global e-commerce sales of $99 million, represents 10.6% of net sales; GAAP gross margin expands 50 basis points to 51.5%; Adjusted Gross Margin expands 100 basis points to 52.0%; GAAP operating earnings of $78 million and GAAP operating margin expands 80 basis points to 8.4%; Adjusted Operating Earnings of $86 million and Adjusted Operating Margin expands 30 basis points to 9.2%; GAAP diluted net earnings per share of $0.44, increases 22% over the prior year; Adjusted Diluted Net Earnings Per Share of $0.51, increases 13% over the prior year; Cash flow from operations of $69 million and Operating Free Cash Flow of $49 million; and Completes $21 million in term loan repayment and $13 million in share repurchases. 'Our third quarter results, including improved topline trends and solid year-over-year growth in operating profit, showcase the resilience of our business and the customer service focus of our team,' said Denise Paulonis, president and chief executive officer. 'Ongoing financial rigor, coupled with our fuel for growth initiative, drove double-digit earnings per share growth and a fourth consecutive quarter of adjusted operating margin expansion. Importantly, our talented teams are continuing to advance our strategic pillars against a complex macro backdrop. Given the strength of our third quarter, we are raising our adjusted operating margin guidance for full year fiscal 2025.' Fiscal 2025 Third Quarter Operating Results Third quarter consolidated net sales were $933.3 million, a decrease of 1.0% compared to the prior year. The Company was operating 35 fewer stores at the end of the quarter compared to the prior year and foreign currency translation had no impact on consolidated net sales for the quarter. Global e-commerce sales were $99 million, or 10.6% of consolidated net sales, for the quarter. Consolidated comparable sales decreased 0.4%, primarily reflecting macro uncertainty, which impacted consumer spending at Sally Beauty, partially offset by strong growth in hair color and digital marketplaces at Sally Beauty as well as continued momentum at Beauty Systems Group from expanded distribution and new brand innovation. Consolidated gross profit for the third quarter was essentially flat at $481.0 million compared to $480.9 million in the prior year. Consolidated GAAP gross margin was 51.5%, an increase of 50 basis points compared to 51.0% in the prior year. Consolidated Adjusted Gross Margin, excluding the inventory write-off from the Company's European operations in connection with the fuel for growth initiative, was 52.0%, an increase of 100 basis points compared 51.0% in the prior year. The increase was driven primarily by the Sally Beauty segment, which delivered higher product margin resulting from benefits from the Company's fuel for growth initiative, lower distribution and freight costs, and lower shrink expense. GAAP selling, general and administrative (SG&A) expenses totaled $402.8 million, a decrease of $5.9 million compared to the prior year. As a percentage of sales, SG&A expenses were 43.2% compared to 43.4% in the prior year. Adjusted Selling, General and Administrative Expenses, excluding the Company's costs related to the fuel for growth initiative, expenses related to the sale of the Company's corporate headquarters, and other non-recurring expenses, totaled $398.9 million, an increase of $2.1 million compared to the prior year. The increase was driven primarily by higher labor and other compensation-related expenses, and higher information technology costs, partially offset by $6.4 million in savings from the Company's fuel for growth initiative and lower depreciation expense. As a percentage of sales, Adjusted SG&A expenses were 42.7% compared to 42.1% in the prior year. GAAP operating earnings and operating margin in the third quarter were $78.2 million and 8.4%, respectively, compared to $71.8 million and 7.6%, in the prior year. Adjusted Operating Earnings and Operating Margin, excluding the Company's costs related to the fuel for growth initiative, expenses related to the sale of the Company's corporate headquarters, costs related to restructuring efforts, and other non-recurring expenses, were $86.1 million and 9.2%, respectively, compared to $84.1 million and 8.9%, in the prior year. GAAP net earnings in the third quarter were $45.7 million, or $0.44 per diluted share, compared to GAAP net earnings of $37.7 million, or $0.36 per diluted share, in the prior year. Adjusted Net Earnings, excluding the Company's costs related to the fuel for growth initiative, expenses related to the sale of the Company's corporate headquarters, costs related to restructuring efforts, the loss on debt extinguishment, and other non-recurring expenses, were $52.4 million, or $0.51 per diluted share, compared to Adjusted Net Earnings of $48.1 million, or $0.45 per diluted share, in the prior year. Adjusted EBITDA in the third quarter was $115.3 million, a decrease of 1.3% compared to the prior year, and Adjusted EBITDA Margin was 12.4%, flat to the prior year. Balance Sheet and Cash Flow As of June 30, 2025, the Company had cash and cash equivalents of $113 million and no outstanding borrowings under its asset-based revolving line of credit. At the end of the quarter, inventory was $1.01 billion, down 1.7% versus a year ago. Third quarter cash flow from operations was $69.4 million and Operating Free Cash Flow totaled $49.1 million. During the quarter, the Company utilized its cash flow to repay $21 million of term loan B debt and repurchase 1.5 million shares under its share repurchase program at an aggregate cost of $13 million. The Company ended the quarter with a net debt leverage ratio of 1.7x. Fiscal 2025 Third Quarter Segment Results Sally Beauty Supply Segment net sales were $526.8 million in the quarter, a decrease of 1.8% compared to the prior year with a 1.1% decrease in segment comparable sales. The segment operated 32 fewer stores at the end of the quarter compared to the prior year and had a favorable impact of 10 basis points from foreign currency translation on reported sales. Segment e-commerce sales were $43 million, or 8.2% of segment net sales, for the quarter. GAAP gross margin increased by 110 basis points to 60.9% compared to the prior year. GAAP operating earnings were $83.3 million compared to $86.9 million in the prior year, representing a decrease of 4.2%. GAAP operating margin decreased to 15.8% compared to 16.2% in the prior year. Beauty Systems Group Segment net sales were $406.5 million in the quarter, an increase of 0.2% compared to the prior year with a 0.5% increase in segment comparable sales. The segment had an unfavorable impact of 10 basis points on reported sales from foreign currency translation and operated 3 fewer stores at the end of the quarter compared to the prior year. Segment e-commerce sales were $56 million, or 13.7% of segment net sales, for the quarter. GAAP gross margin was flat to the prior year at 39.4%. GAAP operating earnings were $50.7 million compared to $46.8 million in the prior year, representing an increase of 8.4%. GAAP operating margin in the quarter was 12.5% compared to 11.5% in the prior year. Fiscal Year 2025 Guidance* The Company is updating its full year comparable sales outlook to the high end of the prior range and raising its full year Adjusted Operating Margin guidance to reflect current business trends. Full Year Comparable sales are expected to be approximately flat (previously flat to down 1%) Consolidated net sales are expected to be approximately 75 basis points lower than comparable sales due to the expected unfavorable impact from foreign exchange rates on full year net sales and operating approximately 30 fewer stores compared to the prior year Adjusted Operating Margin is expected to be in the range of 8.6% to 8.7% (previously 8.0% to 8.5%) * The Company does not provide a reconciliation for forward-looking non-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of its reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of the Company's control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. Expand Conference Call and Where You Can Find Additional Information The Company will hold a conference call and live webcast at approximately 7:30 a.m. Central Time today, August 5, 2025, to discuss its financial results and its business. During the conference call, the Company may discuss and answer one or more questions concerning business and financial matters and trends affecting the Company. The Company's responses to these questions, as well as other matters discussed during the conference call, may contain or constitute material information that has not been previously disclosed. Participants can listen to the live webcast of the conference call by accessing the investor relations section of the Company's website at or through our third-party host at SBH Q3 Earnings Webcast. To join the conference call, participants can pre-register to receive a dial-in number and unique PIN using the following link: Pre-register SBH Q3 Earnings Call. Pre-registration can be completed at any time up to and following the call start time. A replay will be available on the Company's investor relations website after 10:00 a.m. Central Time on August 5, 2025, through August 5, 2026. About Sally Beauty Holdings, Inc. Sally Beauty Holdings, Inc. (NYSE: SBH), as the leader in professional hair color, sells and distributes professional beauty supplies globally through its Sally Beauty Supply and Beauty Systems Group segments. Sally Beauty Supply stores offer up to 7,000 products for hair color, hair care, nails, and skin care through proprietary brands such as Ion®, Bondbar®, Strawberry Leopard®, Generic Value Products®, Inspired by Nature® and Silk Elements® as well as professional lines such as Wella®, Clairol®, OPI®, L'Oreal®, Wahl® and Babyliss Pro®. Beauty Systems Group stores, branded as Cosmo Prof® or Armstrong McCall® stores, along with its outside sales consultants, sell up to 8,000 professionally branded products including Paul Mitchell®, Wella®, Matrix®, Schwarzkopf®, Kenra®, Goldwell®, Joico®, Amika® and Moroccanoil®, intended for use in salons and for resale by salons to retail consumers. For more information about Sally Beauty Holdings, Inc., please visit Cautionary Notice Regarding Forward-Looking Statements Statements in this news release and the schedules hereto that are not purely historical facts or that depend upon future events may be 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. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of words such as 'believes,' 'projects,' 'expects,' 'can,' 'may,' 'estimates,' 'should,' 'plans,' 'targets,' 'intends,' 'could,' 'will,' 'would,' 'anticipates,' 'potential,' 'confident,' 'optimistic,' or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters. Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made. Any forward-looking statements 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, including the 'Risk Factors' described under Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, and other filings with the U.S. Securities and Exchange Commission. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein. We assume no obligation to publicly update or revise any forward-looking statements. Use of Non-GAAP Financial Measures This news release and the schedules hereto include the following financial measures that have not been calculated in accordance with accounting principles generally accepted in the United States, ('GAAP'), and are therefore referred to as non-GAAP financial measures: (1) Adjusted Gross Margin; (2) Adjusted Selling, General and Administrative Expenses; (3) Adjusted EBITDA and EBITDA Margin; (4) Adjusted Operating Earnings and Operating Margin; (5) Adjusted Net Earnings; (6) Adjusted Diluted Net Earnings Per Share; and (7) Operating Free Cash Flow. We have provided definitions below for these non-GAAP financial measures and have provided tables in the schedules hereto to reconcile these non-GAAP financial measures to the comparable GAAP financial measures. Adjusted Gross Margin – We define the measure Adjusted Gross Margin as GAAP gross margin excluding the inventory write-off from the Company's European operations in connection with the fuel for growth initiative for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted Selling, General and Administrative Expenses – We define the measure Adjusted Selling, General and Administrative Expenses as GAAP selling, general and administrative expenses excluding the costs related to the Company's fuel for growth initiative, expenses related to the sale of the Company's corporate headquarters, and other non-recurring expenses for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted EBITDA and EBITDA Margin – We define the measure Adjusted EBITDA as GAAP net earnings before depreciation and amortization, interest expense, income taxes, share-based compensation, costs related to the Company's fuel for growth initiative, expenses related to the sale of the Company's corporate headquarters and other non-recurring expenses for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of net sales. Adjusted Operating Earnings and Operating Margin – Adjusted operating earnings are GAAP operating earnings that exclude the costs related to the Company's fuel for growth initiative, expenses related to the sale of the Company's corporate headquarters, costs related to restructuring efforts, and other non-recurring expenses for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted Operating Margin is Adjusted Operating Earnings as a percentage of net sales. Adjusted Net Earnings – Adjusted net earnings is GAAP net earnings that exclude the tax-effected the costs related to the Company's fuel for growth initiative, tax-effected expenses related to the sale of the Company's corporate headquarters, tax-effected costs from the loss on debt extinguishment, tax-effected costs related to restructuring efforts, and tax-effected other non-recurring expenses for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted Diluted Net Earnings Per Share – Adjusted diluted net earnings per share is GAAP diluted earnings per share that exclude the tax-effected costs related to the Company's fuel for growth initiative, tax-effected expenses related to the sale of the Company's corporate headquarters, tax-effected costs from the loss on debt extinguishment, tax-effected costs related to restructuring efforts, and tax-effected other non-recurring expenses for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Operating Free Cash Flow – We define the measure Operating Free Cash Flow as GAAP net cash provided by operating activities less payments for capital expenditures (net). We believe Operating Free Cash Flow is an important liquidity measure that provides useful information to investors about the amount of cash generated from operations after taking into account payments for capital expenditures (net). We believe that these non-GAAP financial measures provide valuable information regarding our earnings and business trends by excluding specific items that we believe are not indicative of the ongoing operating results of our businesses, providing a useful way for investors to make a comparison of our performance over time and against other companies in our industry. We have provided these non-GAAP financial measures as supplemental information to our GAAP financial measures and believe these non-GAAP measures provide investors with additional meaningful financial information regarding our operating performance and cash flows. Our management and Board of Directors also use these non-GAAP measures as supplemental measures to evaluate our businesses and the performance of management, including the determination of performance-based compensation, to make operating and strategic decisions, and to allocate financial resources. We believe that these non-GAAP measures also provide meaningful information for investors and securities analysts to evaluate our historical and prospective financial performance. These non-GAAP measures should not be considered a substitute for or superior to GAAP results. Furthermore, the non-GAAP measures presented by us may not be comparable to similarly titled measures of other companies. SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (In thousands, except per share data) (Unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 Percentage Change 2025 2024 Percentage Change Net sales $ 933,307 $ 942,340 (1.0 )% $ 2,754,348 $ 2,782,003 (1.0 )% Cost of products sold 452,322 461,457 (2.0 )% 1,337,706 1,370,872 (2.4 )% Gross profit 480,985 480,883 0.0 % 1,416,642 1,411,131 0.4 % Selling, general and administrative expenses 402,812 408,730 (1.4 )% 1,168,776 1,210,303 (3.4 )% Restructuring — 383 (100.0 )% — 361 (100.0 )% Operating earnings 78,173 71,770 8.9 % 247,866 200,467 23.6 % Interest expense 15,709 20,707 (24.1 )% 49,440 58,544 (15.6 )% Earnings before provision for income taxes 62,464 51,063 22.3 % 198,426 141,923 39.8 % Provision for income taxes 16,740 13,339 25.5 % 52,479 36,565 43.5 % Net earnings $ 45,724 $ 37,724 21.2 % $ 145,947 $ 105,358 38.5 % Earnings per share: Basic $ 0.46 $ 0.37 24.3 % $ 1.44 $ 1.01 42.6 % Diluted $ 0.44 $ 0.36 22.2 % $ 1.40 $ 0.98 42.9 % Weighted average shares: Basic 100,463 103,190 101,367 104,477 Diluted 103,239 105,897 104,187 107,186 Basis Point Change Basis Point Change Comparison as a percentage of net sales Consolidated gross margin 51.5 % 51.0 % 50 51.4 % 50.7 % 70 Selling, general and administrative expenses 43.2 % 43.4 % (20 ) 42.4 % 43.5 % (110 ) Consolidated operating margin 8.4 % 7.6 % 80 9.0 % 7.2 % 180 Effective tax rate 26.8 % 26.1 % 70 26.4 % 25.8 % 60 Expand SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands) (Unaudited) June 30 2025 2024 Cash and cash equivalents $ 112,800 $ 107,961 Trade and other accounts receivable 95,957 92,188 Inventory 1,005,365 1,036,624 Other current assets 47,522 68,541 Total current assets 1,261,644 1,305,314 Property and equipment, net 256,472 269,872 Operating lease assets 589,960 582,573 Goodwill and other intangible assets 597,165 598,226 Other assets 38,859 36,914 Total assets $ 2,744,100 $ 2,792,899 Current maturities of long-term debt $ 4,000 $ 4,127 Accounts payable 193,040 269,424 Accrued liabilities 165,291 162,950 Current operating lease liabilities 155,591 136,068 Income taxes payable 5,920 20,100 Total current liabilities 523,842 592,669 Long-term debt, including capital leases 882,383 978,255 Long-term operating lease liabilities 468,998 479,616 Other liabilities 20,874 22,066 Deferred income tax liabilities, net 85,094 91,758 Total liabilities 1,981,191 2,164,364 Total stockholders' equity 762,909 628,535 Total liabilities and stockholders' equity $ 2,744,100 $ 2,792,899 Expand Supplemental Schedule 1 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Segment Information (In thousands) (Unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 Percentage Change 2025 2024 Percentage Change Net sales: Sally Beauty Supply ("SBS") $ 526,782 $ 536,536 (1.8 )% $ 1,552,803 $ 1,573,015 (1.3 )% Beauty Systems Group ("BSG") 406,525 405,804 0.2 % 1,201,545 1,208,988 (0.6 )% Total net sales $ 933,307 $ 942,340 (1.0 )% $ 2,754,348 $ 2,782,003 (1.0 )% Operating earnings: SBS $ 83,305 $ 86,938 (4.2 )% $ 240,484 $ 241,387 (0.4 )% BSG 50,672 46,753 8.4 % 145,075 134,395 7.9 % Segment operating earnings 133,977 133,691 0.2 % 385,559 375,782 2.6 % Unallocated expenses (1) 55,804 61,538 (9.3 )% 137,693 174,954 (21.3 )% Restructuring — 383 (100.0 )% — 361 (100.0 )% Interest expense 15,709 20,707 (24.1 )% 49,440 58,544 (15.6 )% Earnings before provision for income taxes $ 62,464 $ 51,063 22.3 % $ 198,426 $ 141,923 39.8 % Segment gross margin: 2025 2024 Basis Point Change 2025 2024 Basis Point Change SBS 60.9 % 59.8 % 110 60.6 % 59.5 % 110 BSG 39.4 % 39.4 % — 39.6 % 39.4 % 20 Segment operating margin: SBS 15.8 % 16.2 % (40 ) 15.5 % 15.3 % 20 BSG 12.5 % 11.5 % 100 12.1 % 11.1 % 100 Consolidated operating margin 8.4 % 7.6 % 80 9.0 % 7.2 % 180 (1) Unallocated expenses, including share-based compensation expense, consist of corporate and shared costs and are included in selling, general and administrative expenses. Additionally, unallocated expenses include costs associated with our Fuel for Growth initiative and a gain from the sale of our corporate headquarters. Expand Supplemental Schedule 2 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Non-GAAP Financial Measures Reconciliations (In thousands, except per share data) (Unaudited) Three Months Ended June 30, 2025 As Reported (GAAP) Fuel for Growth and Other (1) Corporate HQ Relocation (2) As Adjusted (Non-GAAP) Cost of products sold $ 452,322 $ (4,068 ) $ — $ 448,254 Consolidated gross margin 51.5 % 52.0 % Selling, general and administrative expenses 402,812 (3,737 ) (137 ) 398,938 SG&A expenses, as a percentage of sales 43.2 % 42.7 % Operating earnings 78,173 7,805 137 86,115 Operating margin 8.4 % 9.2 % Interest expense 15,709 — — 15,709 Earnings before provision for income taxes 62,464 7,805 137 70,406 Provision for income taxes (5) 16,740 1,263 10 18,013 Net earnings $ 45,724 $ 6,542 $ 127 $ 52,393 Earnings per share: (6) Basic $ 0.46 $ 0.07 $ 0.00 $ 0.52 Diluted $ 0.44 $ 0.06 $ 0.00 $ 0.51 Three Months Ended June 30, 2024 As Reported (GAAP) Fuel for Growth and Other (1) Restructuring (3) Loss on Debt Extinguishment (4) As Adjusted (Non-GAAP) Cost of products sold $ 461,457 $ — $ — $ — $ 461,457 Consolidated gross margin 51.0 % 51.0 % Selling, general and administrative expenses 408,730 (11,933 ) — — 396,797 SG&A expenses, as a percentage of sales 43.4 % 42.1 % Restructuring 383 — (383 ) — — Operating earnings 71,770 11,933 383 — 84,086 Operating margin 7.6 % 8.9 % Interest expense 20,707 — — (1,697 ) 19,010 Earnings before provision for income taxes 51,063 11,933 383 1,697 65,076 Provision for income taxes (5) 13,339 3,066 99 436 16,940 Net earnings $ 37,724 $ 8,867 $ 284 $ 1,261 $ 48,136 Earnings per share: (6) Basic $ 0.37 $ 0.09 $ 0.00 $ 0.01 $ 0.47 Diluted $ 0.36 $ 0.08 $ 0.00 $ 0.01 $ 0.45 Expand (1) Fuel for Growth and other represents expenses primarily related expenses associated with our Fuel for Growth program and other non-recurring items, including the divesture of operations in Spain. (2) Primarily represents expenses in connection with the relocation of our headquarters. (3) Restructuring represents expenses and adjustments incurred primarily in connection with our Distribution Center Consolidation and Store Optimization Plan. (4) Loss on debt extinguishment relates to the write-off of unamortized deferred financing costs related to the repricing of our Term Loan B due 2030. (5) The provision for income taxes was calculated using the applicable tax rates for each country, while excluding the tax benefits for countries where the tax benefit is not currently deemed probable of being realized. (6) The sum of the earnings per share may not equal the full amount due to rounding of the calculated amounts. Expand Supplemental Schedule 3 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Non-GAAP Financial Measures Reconciliations, Continued (In thousands, except per share data) (Unaudited) Nine Months Ended June 30, 2025 As Reported (GAAP) Fuel for Growth and Other (1) Corporate HQ Relocation (2) Asset Impairment (3) As Adjusted (Non-GAAP) Cost of products sold $ 1,337,706 $ (4,068 ) $ — $ — $ 1,333,638 Consolidated gross margin 51.4 % 51.6 % Selling, general and administrative expenses 1,168,776 (12,412 ) 26,296 (1,779 ) 1,180,881 SG&A expenses, as a percentage of sales 42.4 % 42.9 % Operating earnings 247,866 16,480 (26,296 ) 1,779 239,829 Operating margin 9.0 % 8.7 % Interest expense 49,440 — — — 49,440 Earnings before provision for income taxes 198,426 16,480 (26,296 ) 1,779 190,389 Provision for income taxes (6) 52,479 3,485 (6,788 ) 444 49,620 Net earnings $ 145,947 $ 12,995 $ (19,508 ) $ 1,335 $ 140,769 Earnings per share: (7) Basic $ 1.44 $ 0.13 $ (0.19 ) $ 0.01 $ 1.39 Diluted $ 1.40 $ 0.12 $ (0.19 ) $ 0.01 $ 1.35 Nine Months Ended June 30, 2024 As Reported (GAAP) Fuel for Growth and Other (1) Restructuring (4) Loss on Debt Extinguishment (5) As Adjusted (Non-GAAP) Cost of products sold $ 1,370,872 $ — $ — $ — $ 1,370,872 Consolidated gross margin 50.7 % 50.7 % Selling, general and administrative expenses 1,210,303 (25,760 ) — — 1,184,543 SG&A expenses, as a percentage of sales 43.5 % 42.6 % Restructuring 361 — (361 ) — — Operating earnings 200,467 25,760 361 — 226,588 Operating margin 7.2 % 8.1 % Interest expense 58,544 — — (4,261 ) 54,283 Earnings before provision for income taxes 141,923 25,760 361 4,261 172,305 Provision for income taxes (6) 36,565 6,618 93 1,095 44,371 Net earnings $ 105,358 $ 19,142 $ 268 $ 3,166 $ 127,934 Earnings per share: (7) Basic $ 1.01 $ 0.18 $ 0.00 $ 0.03 $ 1.22 Diluted $ 0.98 $ 0.18 $ 0.00 $ 0.03 $ 1.19 Expand (1) Fuel for Growth and other represents expenses primarily related expenses associated with our Fuel for Growth program and other non-recurring items, including our divestiture of operations in Spain. (2) Primarily represents a $26.6 million gain from the sale of our headquarters in Denton, TX and expenses in connection with the relocation of our headquarters. (3) Impairment related to the write-off of certain tradenames used in Europe. (4) Restructuring represents expenses and adjustments incurred primarily in connection with our Distribution Center Consolidation and Store Optimization Plan. (5) Loss on debt extinguishment relates to the repayment of our 5.625% Senior Notes due 2025, which included a the write-off of unamortized deferred financing costs of $2.0 million, and overlapping interest, net of interest earned on short-term cash equivalents, in the amount of $0.5 million on such senior notes after February 27, 2024 and until their redemption. These pro-forma adjustments assume the redeemed senior notes were repaid on February 27, 2024 at the time of closing on our 6.75% Senior Notes due 2032. In connection with the repricing of our Term Loan B, we recognized a write-off of unamortized deferred financing costs of $1.7 million. (6) The provision for income taxes was calculated using the applicable tax rates for each country, while excluding the tax benefits for countries where the tax benefit is not currently deemed probable of being realized. (7) The sum of the earnings per share may not equal the full amount due to rounding of the calculated amounts. Expand Supplemental Schedule 4 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Non-GAAP Financial Measures Reconciliations, Continued (In thousands) (Unaudited) Three Months Ended June 30, Nine Months Ended June 30, Adjusted EBITDA: 2025 2024 Percentage Change 2025 2024 Percentage Change Net earnings $ 45,724 $ 37,724 21.2 % $ 145,947 $ 105,358 38.5 % Add: Depreciation and amortization 24,669 28,516 (13.5 )% 75,593 83,533 (9.5 )% Interest expense 15,709 20,707 (24.1 )% 49,440 58,544 (15.6 )% Provision for income taxes 16,740 13,339 25.5 % 52,479 36,565 43.5 % EBITDA (non-GAAP) 102,842 100,286 2.5 % 323,459 284,000 13.9 % Share-based compensation 4,509 4,178 7.9 % 14,800 13,260 11.6 % Fuel for Growth and Other 7,805 11,933 (34.6 )% 16,480 25,760 (36.0 )% Corporate HQ Relocation 137 — 100.0 % (26,296 ) — 100.0 % Asset Impairment — — — 1,779 — 100.0 % Restructuring — 383 (100.0 )% — 361 (100.0 )% Adjusted EBITDA (non-GAAP) $ 115,293 $ 116,780 (1.3 )% $ 330,222 $ 323,381 2.1 % Basis Point Change Basis Point Change Operating Free Cash Flow: 2025 2024 Percentage Change 2025 2024 Percentage Change Net cash provided by operating activities $ 69,432 $ 47,895 45.0 % $ 153,953 $ 135,855 13.3 % Less: Payments for property and equipment, net (1) 20,300 19,149 6.0 % 15,697 63,808 (75.4 )% Operating free cash flow (non-GAAP) $ 49,132 $ 28,746 70.9 % $ 138,256 $ 72,047 91.9 % Expand (1) For the nine months ended June 30, 2025, payments for property and equipment, net include $43.6 million in proceeds from the sale of our corporate headquarters. Expand Supplemental Schedule 5 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Store Count and Comparable Sales (Unaudited) As of June 30, 2025 2024 Change Number of stores: SBS stores 3,096 3,128 (32 ) BSG: Company-operated stores 1,198 1,200 (2 ) Franchise stores 131 132 (1 ) Total BSG 1,329 1,332 (3 ) Total consolidated 4,425 4,460 (35 ) Number of BSG distributor sales consultants (1) 611 659 (48 ) (1) BSG distributor sales consultants (DSC) include 191 sales consultants employed by our franchisees at June 30, 2025 and 2024. Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 Basis Point Change 2025 2024 Basis Point Change Comparable sales growth (decline): SBS (1.1 )% 0.7 % (180 ) 0.1 % (1.7 )% 180 BSG 0.5 % 2.6 % (210 ) (0.2 )% 1.8 % (200 ) Consolidated (0.4 )% 1.5 % (190 ) 0.0 % (0.2 )% 20 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 e-commerce revenue. Additionally, our comparable sales include sales to franchisees and full-service sales. Our comparable sales amounts exclude 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. Expand
Los Angeles Times
2 hours ago
- Los Angeles Times
Trump's EPA proposes to end the U.S. fight against climate change
President Trump has been trying to eliminate climate regulations since his first day back in office when he signed an executive order declaring the primacy of fossil fuels. But his administration's most radical step came last week, when the Environmental Protection Agency unveiled a proposal that would rescind its 2009 'endangerment finding' — the scientific conclusion that greenhouse gases contribute to global warming and harm human health and well-being. This isn't just another regulatory rollback. It's an assault on the foundation of all federal climate policy. The endangerment finding originally applied to vehicle emissions, but it also underpins every major federal climate rule in America: car and truck emissions standards, power plant regulations and limits on oil and gas facilities. By removing this cornerstone, Trump's EPA is repudiating federal authority to limit greenhouse gases, our most powerful tool for fighting climate change. The irony is that no industry asked for this extreme step. Car makers need stable federal rules to compete globally. Power companies have invested billions in renewable energy, which regulatory uncertainty puts at risk. Even most oil and gas companies support a national approach to limiting methane. Companies may stay quiet to avoid crossing a vengeful administration, but they know climate change is real and that some federal regulation makes business sense. As the federal government retreats, states such as California will try to fill the void. But Trump is trying to block them too, directing the Justice Department to challenge state climate policies. With its cap-and-trade program, renewable energy standards and clean transportation incentives, California is helping to cut harmful emissions, and it could do more. Yet even the most ambitious state measures can't substitute for the national standards needed to tackle a problem the size of climate change. The legal foundation the administration is attacking seemed unshakeable. The Clean Air Act requires the EPA to regulate air pollutants that endanger human health and welfare. In 2007, in Massachusetts vs. EPA, the Supreme Court ruled 5-4 that greenhouse gases are air pollutants, and that the endangerment decision must be based on science. Two years later, after the EPA reviewed studies by the National Climate Assessment, the National Research Council and the U.N. Intergovernmental Panel on Climate Change, it found that greenhouse gases accumulating in the atmosphere are a danger, pointing to higher temperatures, worse air quality, extreme weather events, spreading drought and more food- and water-borne pathogens. Following the process set out in the Clean Air Act, the agency then established national emission standards for the sources in each sector of the U.S. economy that contribute to this problem. To unravel all of this, the Trump administration proposal offers a medley of strained legal and scientific arguments. First, it claims that greenhouse gases are not pollutants because they have global, not local, effects. This argument is hard to square with the Supreme Court's ruling to the contrary, but they are trying it anyway. The proposal also asserts that U.S. emissions don't contribute to harms from climate change because climate impacts are too remote and American emissions are too small a share of the global total to matter. The first point demands a direct link between U.S. emissions and specific climate impacts, which is impossible to prove given that the effects of climate change are the result of global pollution from numerous sources. The second point rests on a contrived method for calculating emissions piecemeal, which makes them appear vanishingly small. No category of sources, whether cars or power plants, would produce a large enough share of greenhouse gases to justify regulation under this approach. It's a test designed to be impossible to pass. (Studies show, to the contrary, that every ton of emissions avoided counts when it comes to reducing climate risks, and that even incremental reductions bring significant public health and economic gains.) The proposal goes on to attack the scientific basis for the endangerment finding, calling it unreliable based largely on a report from the Department of Energy written by five handpicked scientists known for their outlier views. The report asserts, among other things, that global warming is on balance more beneficial than harmful, that cold temperatures are the greater threat and that extreme weather events are not worse than they have been historically. To say that such claims defy the consensus is an understatement. Relying on a commissioned report by a closed group looks especially suspect given that Trump disbanded the National Climate Assessment, a congressionally mandated periodic review conducted by hundreds of climate scientists and involving more than a dozen government agencies, which has warned of climate dangers in five reports since 2000. The proposal also folds policy objections into the scientific assessment, asserting that regulating greenhouse gases simply costs too much and accomplishes too little. But this muddles the issues. Whether climate change is harmful is a purely scientific assessment. How stringently to regulate is a separate question that must weigh both costs and benefits. On that score, the proposal's cost analysis is highly skewed, citing the burdens of regulation while ignoring the substantial public health and economic benefits of limiting warming. In all, the proposal's scattershot justifications seem designed to offer the conservative supermajority on the Supreme Court — where the issue will likely land — a variety of ways to agree. After all, the five members of the Massachusetts vs. EPA majority have retired or died, while three of the four dissenters remain. The current court has steadily limited that decision's reach by narrowing the EPA's authority. Given their recent rulings, the justices could well reject the proposal's most far-fetched arguments while concluding that the EPA simply has broad discretion not to regulate greenhouse gases. Even if the administration ultimately loses in court, it wins by paralyzing climate action for years. As EPA Administrator Lee Zeldin put it in announcing the proposal, the administration is 'driving a dagger through the heart of climate change religion.' But climate change isn't a religion — it's physics and chemistry. And science doesn't care about politics. We can't solve climate change with regulation alone. But we certainly can't solve it by pretending the problem doesn't exist. The administration's assault on climate action won't change the evidence or reality of climate change. As scientists have predicted, storms are growing more intense, heat waves more deadly, wildfires more destructive. We spend billions annually on disaster response while other countries surge ahead in clean energy innovation and manufacturing. China now dominates solar panel and electric vehicle production; Europe leads in offshore wind. The question isn't whether we'll eventually return to responsible climate policy — we will because we must. The question is how much time we'll lose, and how much damage we'll suffer, while politics masquerades as good policy. Jody Freeman is a professor and director of the Environmental and Energy Law Program at Harvard University. She was counselor for energy and climate change during the Obama administration.
