As previously reported, Oppenheimer analyst Rupesh Parik downgraded Sally Beauty to Perform from Outperform after quarterly results. While the analyst "very much expected" a miss this quarter and had viewed management's full-year guidance as too aggressive, he notes that the bottom-line flow-through was worse than he had envisioned, driven by softer gross margins and greater expense deleverage. With the challenging retail backdrop and intensified efforts by others in the beauty category, Parik is less confident in Sally Beauty's ability to drive traffic back to stores in the near-term.