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1Z0-425 exam Dumps Source : Oracle Fusion CRM: Sales 2014 Implementation Essentials

Test Code : 1Z0-425
Test denomination : Oracle Fusion CRM: Sales 2014 Implementation Essentials
Vendor denomination : Oracle
: 146 actual Questions

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Oracle Oracle Fusion CRM: Sales

What Oracle Fusion CRM in the Cloud skill for Salesforce and Siebel consumers | actual Questions and Pass4sure dumps

home   →   CRM   →   What Oracle Fusion CRM within the Cloud capacity for Salesforce and Siebel purchasers Posted October 27, 2011 with the aid of Herman Mehling     comments

Oracle made a daring stream into cloud CRM this month, however what does it imply for competitors affection Salesforce and Microsoft and Oracle's personal Siebel valued clientele?

The CRM (customer relationship management) market got a bit of busier this month with the entry of Oracle's lengthy-awaited Oracle Fusion CRM, which is additionally the groundwork of Oracle's recent Public Cloud.

as the newest entry in a extremely competitive market, Oracle (NASDAQ: ORCL) will ought to stand out to bag observed. So how does it stack up against centered choices from the likes of Microsoft, and SAP? and perhaps more importantly for Oracle's longtime valued clientele, will Oracle Fusion CRM spell the conclusion of CRM On Demand, its present cloud providing in accordance with Siebel, and Siebel CRM?

"The Oracle cloud is a runt distinctive," stated Oracle CEO Larry Ellison when he introduced the product suite on the Oracle OpenWorld 2011 consumer conference currently. 

The Oracle Public Cloud is both a platform as a provider and purposes as a service, he defined.

"the indispensable thing contrast is the Oracle Public Cloud is in line with trade specifications and helps full interoperability with other clouds and your statistics seat on premise," he stated.

via standards, he essentially intended Java. Oracle's cloud claims to hasten any app written in Java. 

The End of Siebel and CRM On Demand?

one of the vital leading ideas of the Fusion applications progress application changed into to carry the most effective ideas, architectural patterns and enterprise practices of everything "legacy" functions (eBusiness Suite, PeopleSoft, JD Edwards, Siebel CRM, Retek, and the like) into the recent suite, wrote Alexander Hansal in his October 17 weblog post.

Hansal, a technical instructor in Siebel and an Oracle consultant, wrote, "The knowledgeable eye will view common 'Siebel patterns' in Fusion CRM. nonetheless, the necessities for CRM Have enormously changed within the last years, so there are lots of recent issues as smartly."

Hansal preeminent Siebel shoppers Have three alternate options: tarry with their legacy utility by using upgrading to probably the most ripen version (Siebel 8.1.1); augment their existing legacy app with recent functionality offered by using the Fusion purposes stack; or ditch the legacy stuff and embrace the recent Fusion world.

consumers can readily improve, he believes, because Fusion purposes are designed from the ground up to co-exist with Oracle's legacy apps.

Hansal concluded: "I correspond with that Siebel CRM isn't dead. Too many hours and bucks/euros/rubel were spent through customers in Siebel initiatives to naively deem that they'll just dump it considering version 1 of Fusion CRM.

"whereas I usually outcome not outcome too a entire lot IT crystal balling, they should still view a different decade of thriving Siebel projects, however there is a brand recent flower within the backyard which they mustn't neglect (translates to: wake up and bag educated on Fusion purposes."

Oracle Public Cloud: The complete CRM equipment?

"Oracle is the only seller that offers a finished suite of commercial enterprise solutions within the cloud, which comprises both utility functions and platform ones," travel Chowdhry, managing director of equity research at world Equities analysis, wrote in a fresh research note.

Oracle's application capabilities encompass Fusion CRM, Fusion HCM and gregarious Networks, whereas its platform functions consist of Java capabilities and Database features – and simply this week, Oracle brought cloud client carrier with the acquisition of RightNow.

Oracle claims, amongst different things, that its Oracle Fusion CRM Cloud service enables businesses to combine consumer and product grasp statistics assistance with everything CRM strategies – which the vendor says is a primary for cloud-based mostly CRM solutions. Oracle additionally claims that the carrier delivers a consolidated client middle for everything CRM traffic tactics.

Oracle Shuns Multi-tenancy

however Ellison indulged himself and his captive viewers in taking pot shots at Salesforce, Forrester research analyst James Staten pointed out he believes the Oracle providing can subsist extra of an instantaneous competitor to Amazon net services than 

The strongest proof is in Oracle's stance on multi-tenancy, spoke of Staten, noting that Ellison shunned a tenancy mannequin built on shared statistics retailers and application fashions, which are key to the profitability of (and most birthright SaaS and PaaS options).

The Oracle Cloud offering is based mostly not on multi-tenancy, however on virtualization containers that allow purchasers to seamlessly switch from side to side between the private and the public clouds.

"Oracle will runt question exhaust its personal Xen-based hypervisor, OracleVM, as opposed to the enterprise general VMware vSphere," referred to Staten, noting that photograph conversion between both platforms is pretty handy.

whereas many commercial enterprise infrastructure and operational gurus will applaud this strategy, this IaaS-centric structure is artery more useful resource-intensive for helping distinctive shoppers than the Salesforce mannequin, Staten talked about.

Microsoft seems to accept as birthright with Salesforce, as its home windows Azure mannequin applies tenancy at the utility smooth as well, he brought. 

a large selling aspect for Oracle may subsist that the identical Fusion middleware application bought on-premises is purchasable in the cloud and that the programming mannequin for Oracle Public Cloud is an identical open specifications-based languages of Java, BPEL and net capabilities. 

"this is in lucid contrast to the walled gardens of most other PaaS offerings," referred to Staten. "Microsoft comes closest to this cost proposition as most open languages and internet functions are supported but the middleware capabilities of Azure don't appear to subsist one-for-one with their on-premise equivalents."

little doubt some IT pros will laud this architectural consistency, as it vastly eases the migration of Java apps between on-premises and cloud.

Pricing and Financials Coming

whereas Ellison announced a group of cloud functions – four SaaS purposes and four PaaS capabilities – handiest a subset of those appear on the site. 

handiest the business's database and Java capabilities are shown as PaaS functions, with the already pre-existing CRM and human capital administration as SaaS purposes.

Staten preeminent management and Fusion Financials (Oracle eBusiness Suite) are anticipated to follow on the SaaS layer, with an information provider to supposedly rival Azure. loads of unknowns continue to subsist for this provider, the biggest being pricing, mentioned Staten.

while Ellison said an AWS-like pay-per-use model, he moreover mentioned the requirement of a subscription. 

As each illustration will embrace at least both an Oracle database or a WebLogic app server, users can are expecting each and every instance to suffuse excess of Amazon's $0.08 for a tiny VM, referred to Staten.

SpringCM content Cloud capabilities Streamline revenue approaches for Oracle income Cloud (Fusion CRM) shoppers | actual Questions and Pass4sure dumps

SAN FRANCISCO, CA--(Marketwired - Sep 24, 2013) - SpringCM®, a Silver degree member of Oracle PartnerNetwork (OPN), these days introduced that the business's content material Cloud capabilities had been integrated with Oracle sales Cloud (Fusion CRM). SpringCM's Cloud content material capabilities along with Oracle sales Cloud provides a separate destination for storing, sharing and dealing with content, from theory to completion, on practically any device. The integrated solution offers Oracle sales Cloud clients one-click entry to earnings-connected documents, enabling them to better manage content material, comparable to rates and contracts, everything the artery through the earnings process. The integrated solution is now obtainable within the recent Oracle Cloud market.

SpringCM will account for the integrated Oracle revenue Cloud and SpringCM solution within the Cloud Pavilion at Oracle OpenWorld 2013, September 22-26.

SpringCM and Oracle earnings Cloud Fusion the combination of Oracle earnings Cloud and SpringCM content Cloud services helps revenue and operations teams dispose of the time-ingesting snags in sales cycles, that can assist businesses recognise expanded salary volume and pace. SpringCM combines the benefit-of-use of buyer cloud storage capabilities with strong commercial enterprise-category content administration capabilities designed to Place content material to work.

the exhaust of a full-featured SpringCM folder embedded in Oracle revenue Cloud, clients can with ease and hastily upload and work with latest content devoid of leaving Oracle. users can edit, share and collaborate on content material, such as advertising materials, proposals, rates and contracts, with inside group members and exterior clients and partners. And clients can at everything times Have probably the most latest content with SpringCM's prosperous assist for versioning, grasp a view at/check in, notifications and designated audit trails and wield over who can view and alter content material.

further features encompass:

  • automated workflows, driven by using SpringCM, for developing and managing documents, with checklists to automatically coerce approaches and "round travel" emails for experiences and approvals
  • effective search capabilities, enabling fleet finds of captious content material
  • Simplified sharing, making it handy to collaborate, internally and externally
  • enterprise-energy protection controlling who can view, edit, sync and delete content
  • "SpringCM ties into Oracle earnings Cloud for an accelerated and entirely integrated income and contract administration system," spoke of Jonathan Leitner, Senior vice chairman of enterprise construction at SpringCM. "Giving revenue teams one-click entry to content material makes every runt thing sooner and more straightforward -- from contract creation through negotiation, changes, approvals, signatures, archiving and renewals. Reps can focal point on possibilities, purchasers and closing offers, in its Place of chasing content. With Oracle income Cloud and SpringCM, organizations can straight away and dramatically augment their income approaches."

    About SpringCM SpringCM is a frontrunner in content material Cloud features for the enterprise. businesses deserve to outcome greater than shop and share content -- they deserve to set aside content to work to accelerate company results. SpringCM helps global manufacturers and public sector groups -- Google, facebook and the Commonwealth of Virginia, amongst others -- remedy content-connected issues that stand in the artery of optimizing revenues, chopping prices, and mitigating possibility.

    About Oracle PartnerNetwork Oracle PartnerNetwork (OPN) really expert is the latest version of Oracle's accomplice program that offers companions with tools to better develop, promote and enforce Oracle solutions. OPN really qualified offers substances to train and assist specialized skills of Oracle products and options and has advanced to recognize Oracle's starting to subsist product portfolio, ally groundwork and enterprise possibility. Key to the latest enhancements to OPN is the capability for partners to distinguish through Specializations. Specializations are executed via competency construction, enterprise outcomes, skills and confirmed success. To find out more consult with

    trademarks Oracle and Java are registered emblems of Oracle and/or its associates.

    Will Oracle’s Fusion CRM pave the style for the relaxation of the Fusion apps? | actual Questions and Pass4sure dumps

    Oracle's lengthy march towards Fusion applications, a massive application to bring together the most desirable functionality of its many acquisitions, took a tremendous step ahead ultimate week at OpenWorld when CEO Larry Ellison tested the forthcoming Oracle Fusion functions.

    "We basically determined to grasp the entire surest facets of PeopleSoft, Oracle and Siebel and reimplement these features on properly of a modern middleware infrastructure completely written from Java," Ellison referred to. "we can convey these applications to actual shoppers at the End of this 12 months."

    It’s a significant step for an application "greater than 5 years in the making," in accordance with Ellison, however for valued clientele, it is barely the beginning.

    while Oracle has persisted to guide, and even update, PeopleSoft, JD Edwards, and Siebel under its purposes unlimited software, the recent functions require some cautious considering.

    as an example, Pella Corp., the window brand, has meticulously maintained its Oracle purposes environment for years and is planning to supersede its Oracle E-enterprise Suite (EBS) in December. with a view to permit for an easier transition to Fusion applications, but that doesn't insinuate that Pella is diving in headfirst. It at the instant runs Oracle's own CRM product from EBS and has some seats of Oracle CRM On require live.

    "there may subsist some enjoyment amongst their team," stated Rick Hassman, director of applications with the Pella, Iowa-based enterprise. "we Have made a option to bag to [E-Business Suite] 12, so they had the pliability to pick and determine around the Fusion apps they requisite to pushover ahead with."

    Which applications Pella sooner or later adopts will subsist selected a assignment groundwork, and it’s the CRM functionality that holds many of the enchantment.

    "We’re stable and not trying to find a lot of enhancements in manufacturing," Hassman talked about. "there may subsist less likelihood they would evanesce down that street. As we're looking at the MDM stuff, territory administration stuff, they've shown us capabilities that Have been very inviting. I bag notes from one among my managers in CRM: 'We simply had the demo and it seems affection there's a lot of potential.'"

    CRM represents the early Fusion applications

    definitely, CRM has led the style for Fusion functions. It turned into three years ago that Ellison first introduced that Fusion applications had arrived, demonstrating a yoke of gregarious CRM gear for revenue collaboration. moreover, it became lucid from classes at OpenWorld that the Fusion CRM capabilities acquired lots of consideration. it will probably bag a lot of customer attention as smartly, thanks partly to the core consumer facts model.

    "one of the most core issues in Fusion CRM is that as individuals are genesis to exhaust distinctive items, everything of it comes lower back to the statistics mannequin," observed Ray Wang, accomplice, enterprise strategy, with San Mateo, Calif.-based Altimeter community. "The consumer record gets tied back to Fusion CRM. americans will gravitate to that as a result of a lot of the core Fusion CRM product has been developed on the Siebel consumer model."

    while the "first" Fusion purposes were Oracle's gregarious CRM tools, the company has poured most of its CRM edifice efforts into CRM On Demand, its software as a carrier (SaaS) functions in accordance with what changed into originally Siebel On Demand. Most recent sales of CRM at Oracle had been the CRM On require product, according to Wang.

    "in case you loom on the sales constitution, most americans are on CRM On Demand. The transition is going to subsist a qualified deal less complicated for them," he noted.

    The migration may subsist greater difficult for PeopleSoft customers, he warned, but for those who actually are looking to outcome the circulate to Fusion CRM, rise up to this point first.

    "the key component for shoppers is if you are coming in from Siebel, are trying to bag onto the On require product, try to bag to the newest version of Siebel," Wang talked about. "The upgrade route is encompassing further and further Fusion add-ons. definitely, a lot of the Fusion middleware components which are required are displaying up in later releases. as long as you might subsist in an upgradeable free up, you might subsist on the revise course."

    Oracle CRM purchasers thinking forward

    it truly is been the considering at Pella – although a key query has emerged.

    "we Have now at everything times performed the point releases," Hassman talked about. "[The upgrades] are painful but they are value it. They really justify themselves. If they delivery doing element enhancements on sure areas, will that bag us out of sync in their total integration? Is there a chance one district receives at the back of, one receives forward, and that i can not grasp potential of something?"

    the brand recent Fusion CRM purposes cling some engage for Eric Pozil, managing director of CRM Northwest, a Seattle-primarily based consultancy that helps businesses with their CRM decisions and moreover runs CRM On require internally.

    "The finished hub round clients and contacts, planning skill and integration everything seemed decent," Pozil stated. "however you should exhaust the complete ball of wax, it feels like. I don’t comprehend if a consumer, from a TCO viewpoint, may subsist inclined to pushover to everything of the add-ons. I actually Have a sense the subscription can suffuse might subsist greatly extra. Will the boost in performance subsist overwhelming in comparison to CRM On require or"

    Oracle did not unencumber pricing information on any of the Fusion purposes. it's making the applications obtainable to beta testers on the conclusion of this yr, and the purposes might subsist often accessible in the first quarter of 2011.customers up to date on their protection and assist may subsist in a position to outcome a like-to-like swap.

    "They've taken the time to determine what the largest Siebel client wishes and what their footprint is," Wang stated. "anything in these huge installed bases, they've agreed for like-to-like swap."

    customers would should pay for modules they don't Have already got set aside in.

    sooner or later, it will nevertheless subsist years earlier than Fusion CRM is fully deployed in the market.

    "What we're seeing is in fact horizontal widely wide-spread-intention CRM options [that] a manufacturer-new consumer will exhaust these days," Wang referred to. "In two to 3 years, the first of the functionality may subsist built out, and within the next three to four years, Fusion CRM will Have finished parity with the groundwork horizontal functionality."

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    Salesforce - Overvalued And Not Significantly Diversified | actual questions and Pass4sure dumps

    No result found, try recent keyword!Salesforce's flagship subscription product generates 93% of sales. Several large players are moving into the CRM space and a poorly diversified ... Saleforce’s largest competitors embrace Microsoft, O...

    Sally Beauty Holdings Inc (SBH) Q1 2019 Earnings Conference summon Transcript | actual questions and Pass4sure dumps

    Image source The Motley Fool.

    Q1 2019 Earnings Conference CallFeb. 05, 2019, 8:30 a.m. ET

    Ladies and gentlemen, thank for standing-by, and welcome to the Sally Beauty Holdings First Quarter Results. At this time, everything lines are in a listen-only mode. Later, they will conduct a question-and-answer session. Instructions will subsist given to you at that time. (Operator Instructions) And as a reminder, today's conference summon is being recorded.

    I would now affection to eddy the conference over to Mr. Jeff Harkins. please evanesce ahead.

    Thank you, Cynthia. Before they begin, I would affection to remind you that sure comments, including matters such as forecasted financial information, contracts or traffic and trend information, made during this summon may hold forward-looking statements within the signification of Section 27A of Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Many of these forward-looking statements can subsist identified by the exhaust of words such as believe, project, expect, can, may, estimate, should, plan, target, intend, could, will, would, anticipate, potential, confident, optimistic and other similar words or phrases.

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    With me on the summon today are Chris Brickman, President and Chief Executive Officer; Aaron Alt, Senior Vice President, Chief financial Officer and President of Sally Beauty Supply; and Brent Baxter, Group Vice President and Principal Accounting Officer. Chris will provide a brief overview of their performance for the quarter and give you an update on their first quarter efforts against their transformation plan. Aaron will then contend their first quarter financial results, highlights and key changes within their North American traffic and then tender some thoughts around maintaining their full year guidance.

    Now, I'd affection to eddy the summon over to Chris.

    Christian A. Brickman -- President and Chief Executive Officer

    Thank you, Jeff, and qualified morning, everyone. They are making even progress against their transformation draw and remain on track for their key initiatives for the remnant of this fiscal year. For the quarter, they delivered positive consolidated same-store sales as both traffic segments continued to improve. They are moreover pleased with their results on the bottom line, while acknowledging that they still Have runway in front of us. If you mediate back to their last earnings call, they called out four primary objectives for their businesses for fiscal year 2019: enhancing their focus on their defensible categories of hair color and hair care, improving their execution of basic retail fundamentals, advancing their digital service platforms and optimizing their cost base.

    We're making qualified progress against these efforts, and their first quarter results reflect that, particularly in the North American portions of Sally Beauty Supply. That said, they Have significant work ahead of us, and their second and third quarters will view fundamental change in Sally Beauty Holdings. They remain firm in their credence that their efforts are putting Sally Beauty Holdings on the birthright track for long-term success.

    I'd affection to highlight some of the steps they took in the first quarter and so far in the second quarter. First, playing to win in their differentiated core of hair color and hair care. Sally Beauty Holdings' businesses Have differentiated core -- a differentiated core tied to their assortment and their expertise in hair color and hair care. This manifest itself in a number of ways. First, their assortment is anchored by higher margin owned and exclusive brands, and they are constantly looking for additional opportunities in this area. For instance, for the first quarter of fiscal year '19, owned and exclusive brands comprised approximately 46% of Sally Beauty Supply's revenue, with the majority of those sales being owned brands. Similarly, owned and exclusive brands comprise roughly 53% of Beauty Systems Group sales, with the vast majority of those sales being exclusive brands, signification accepted third-party brands for which they Have exclusive wholesale distribution rights, within defined territories.

    Our differentiated assortment is essential to their success and they continue to focus their efforts against this core strength. Here are a yoke of examples of how they are doing that. Ion is Sally Beauty's largest owned brand. Borrowing from its sister business, Beauty Systems Group successfully launched high character Ion electrical appliances in the first quarter. Sales Have been excellent thus far. You may Have noticed that two weeks ago, qualified Morning America ran a segment which highlighted their Ion Titanium Pro Curling Iron on the air, as qualified Housekeeping's top pick for curling irons regardless of price. This item, which is available in both Beauty Systems Group and Sally Beauty Supply, demonstrates the character of their own brand product.

    BSG is exploring options to quickly add more own brands in adjacent categories. In color and care, Beauty Systems Group focus will remain on their partnerships with their exclusive brands. moreover in Beauty Systems Group, they added to the portfolio by rolling out the prestigious hair color line Pravana in November and then followed it up with the launch Pravana hair care in January. Pravana is known for its groundbreaking innovation, particularly its vivid colors, and has a loyal following among stylists, and they are seeing genuine excitement from their customers associated with this launch. Despite some early vendor supply chain issues with Henkel, they are ahead of draw with respect to their Pravana sales.

    Beauty Systems Group moreover reinforced two existing lines with innovation, namely Guy Tang's #mydentity hair care products and the recent reformulated Wella hair color line, Koleston Perfect. Guy Tang is a well-known professional stylist with over 2 million followers on Instagram. His recent hair care products are an expansion of his current hair color brand and are designed for long, vibrant color tone. The reformulated Wella Koleston consummate line uses ME+ technology, designed to reduce the risk of developing hair color allergies, while delivering absolute and balanced hair color results. These products are now available throughout the entire Beauty Systems Group network in the US and Canada.

    While they had some mighty wins in Q1, they are already making progress in this district in Q2. Beauty Systems Group just completed two tiny acquisitions, acquiring exclusive wholesale distribution rights for Joico in the Boston district and for exclusive wholesale distribution rights for Paul Mitchell in the Hawaiian market. They are assessing further opportunities of this sort, whether it's through recent partnerships, acquisitions or expanding current distribution agreements. And as they mentioned previously, BSG has signed an exclusive distribution agreement with the Swedish vegan hair care brand, Maria Nila. This is an indispensable assortment gain for BSG, as Maria Nila is a rising premium brand that appeals to recent industry trends around natural products. They will bag this product to shelf before the End of Q2. Not to subsist outdone, Sally Beauty Supply is moreover raising its gain.

    During the first two quarters of fiscal 2019, Sally Beauty will launch 14 recent brands in color and care, with a focus on influencer-linked brands. In January, Sally Beauty launched a recent vegan cruelty-free hair color line, qualified Dye Young, co-created by Hayley Williams, the lead singer of the Grammy Award winning corps Paramore. Williams moreover has more than 2 million followers on Instagram. qualified Dye green is now available nationwide on and is moreover in select Sally Beauty stores. They anticipate a full launch across everything Sally Beauty supply stores by the End of the third quarter. At the selfsame time, Sally Beauty continues to view success with its partnership with the Arctic Fox Vivid color line. In January, Sally Beauty expanded the full color palette to everything stores and anticipates other potential brand expansion opportunities in the future.

    Finally, by artery of update, as you know, in late September, they launched the recent color kits or boxed color options online and in everything US Sally Beauty Supply stores. This recent break for Sally Beauty has proven to subsist incremental to their basket, and they continue to subsist pleased with the results of the launch. They will subsist adding an additional 10 shades to the color assortment during Q2 and more shades in Q4. They will moreover subsist expanding their sales efforts to their Canadian operations.

    Now, retail fundamentals. Turning to progress on their efforts to ameliorate their retail fundamentals. On this call, I'm going to highlight their work against loyalty, store flavor and technology, and then Aaron will paw on supply chain later in the call. In late October, Sally Beauty Supply completed the national roll-out of its recent loyalty program Sally Beauty Rewards to everything US and Canadian stores. The recent program allows customers to enroll for free and accumulate points for a $5 reward certificate for every $50 of spend. Initial results Have been promising, and I want to provide you with a yoke of proof points.

    The transition has been smooth and has not resulted in any noticeable disruption to their national business. The national roll-out is tracking consistent with the results of their year-long test in Florida and Georgia. They are seeing adoption rates in many stores that are almost twice as high as adoption of their venerable program. At the End of the quarter, they had 14 million members in the recent loyalty program. Finally, approximately 60% of transactions and 70% of sales in the US and Canadian stores are now tied to a Sally Beauty Rewards membership. The program has only been in Place for roughly 90 days, so they are pleased with these initial results, while focused on using their closer connection to their clients to drive more traffic.

    Retail fundamentals, their store experience. They view their 5,100 stores to subsist a competitive advantage. As I've mentioned in the past, they are designing and testing both recent store concepts and update packages for both traffic segments in one city, which is Las Vegas. They Have moved from design and concept to construction. They are rolling out everything of their changes, from assortment, to store layout, to marketing, to technology. Importantly, by targeting one city, they will subsist able to assess synergies between Sally Beauty and CosmoProf. Construction has begun, and they hope everything Sally stores will subsist complete by the End of March and the BSG stores will subsist complete soon after.

    Next, technology. They Have moved from concept to reality as fraction of implementing a recent Oracle point-of-sale system in both traffic segments. Testing in stores has begun in a number of territories. They will expand their roll-out over the next three quarters and hope to subsist in approximately 1,400 stores by the End of this fiscal year. The combination of their CRM implementation, which is already complete; their loyalty program; their recent digital commerce website and apps, which are coming soon; and the recent POS systems means that for the first time, Sally Beauty and BSG will subsist able to identify their customers regardless of channel, we'll subsist able to serve them on an individualized basis, and we'll subsist able to remove friction from the shopping flavor for them. There are many moving pieces, but this is a really tremendous deal for us.

    Lastly, a quick update on their JDA implementations. During Q1, they completed and went live with phase 1 of the JDA merchandising and supply chain platform implementation, which included product setup and maintenance, store spacing and floor planning. Their efforts will continue for the remnant of this year as they track a conservative implementation draw based on test, test again and deploy.

    Onto their third objective, having a robust digital service platform. As they Have stated in prior quarters, they Have already completed the e-commerce investments in the Sally warehouses and begun the marketing efforts around their two-day shipping capabilities to over 95% of the US and one-day shipping capabilities to over 30% of the US. They continue to view improvements with over 30% year-over-year growth in both their US and international e-commerce businesses, driven primarily by increased conversion rates. They Have moved into a tremendous quarter for us, the quarter in which they finalize and deploy the recent and bag ready to launch the mobile app.

    At the End of this quarter, in partnership with IBM and Blue Wolf, they will fully deploy their updated e-commerce capabilities for Sally Beauty Supply. They will quickly follow the e-commerce launch in March with the launch of the Sally Beauty app in April. The BSG launch of the updated websites and a commerce-based app are moreover on track. These recent user experiences and platforms are indispensable transformation proof points for us.

    Next, cost optimization. As their quarter results demonstrate, they Have aggressively pursued cost savings initiatives while proactively addressing headwinds from labor and much-needed investments. Their cost reduction program will continue to subsist focused on finding additional operating efficiencies and improvements to direct and indirect sourcing. During this quarter, they expanded the implementation of their sourcing, store labor and G&A optimization to their European and Mexican operations, which helped to offset top line pressure in those geographies during the quarter. In addition, they completed the integration of their Mexico and South American operations into one Latin American operations team in order to gain further efficiencies and more consistent execution across the territory. They Have more to outcome here and continue to work arduous against their cost takeout plans. Their cost optimization efforts over time will permit us to outcome necessary investments in the traffic and provide us with additional flexibility based on the needs of their traffic and the transformation plan.

    To summarize, the first quarter showed solid progress on their transformation plan, but they recognize that they still Have work to do. With their key accomplishments from the quarter, they are confident that they are moving in the birthright direction.

    Now, I will eddy it over to Aaron to contend a yoke of topics in more detail.

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    Thank you, Chris, and qualified morning, everyone. I want to start today with a ck to their last earnings callto their store associates, regardless of whether they are located in Florida, Hawaii, Chicago, Monterrey, Lima, Toronto, London or Paris, the Sally Beauty, CosmoProf and Pro-Duo teams are doing a mighty job of managing through everything the change that comes with the transformation. I Have three objectives today: provide a brief summary of today's announcement of their supply chain modernization efforts, to review the consolidated financial details for the first quarter along with segment results, and finally, to confirm that they are maintaining their full year guidance.

    Before jumping into the numbers, a yoke of broad observations. They Have a plan. We're pleased to subsist able to report some initial success against the first steps of their plan. They Have a lot of work yet to do. They remain on target for the next several steps of that plan. I'm going to start today by highlighting one of the announcements you will Have seen in their earnings release, phase 1 of their supply chain modernization plan. Their supply chain is the product of acquisitions conducted over many years. They Have 15 distribution centers across the United States and Canada. Their network is overly complex, sub-scaled by node, and many of their facilities lack automation or efficient processes, which Have become common in today's economy. They Have too much inventory in the wrong places, to allow us to optimize their inventory purchases, accelerate their replenishment of fulfillment and pushover goods through their network as efficiently as possible.

    As a result, their team has been assessing their options on the context of the overall transformation of their traffic and how best to back their customers across both the retail and wholesale channels. In an application to ameliorate their stocks, optimize inventory levels, reduce cost and explore recent replenishments and fulfillment options, today, they are announcing the first step in their supply chain modernization plan, which includes the closure of their existing distribution nodes in Denton, Texas and Anchorage, Alaska by the End of the second quarter and closure of their distribution nodes in Lincoln, Nebraska by the End of the third quarter. The company is moreover announcing the search for a 500,000 square foot location within Texas for construction of a recent automated and concentrated distribution center, which will service Sally Beauty Supply stores and e-commerce sales as well as Beauty Systems Group stores, full service sales and e-commerce sales. This recent facility will subsist designed to utilize more advanced technology and operate with greater efficiencies and will subsist the first example of their consolidated inventory being serviced from under one roof.

    The company will moreover subsist upgrading its e-commerce capabilities at its distribution facility in Columbus, Ohio. The capital investments for these initiatives is already baked into their estimate for fiscal '19. In addition, reflecting the breadth of their company's physical footprint and the asset it is for us, over the next several quarters, they will subsist further upgrading and integrating their enterprise technology capabilities to allow in-store inventory to subsist accessed by digital clients as fraction of testing, buy online/pickup in store, buy online/deliver from store and ship from store initiatives. By the End of fiscal year 2020, their supply chain will subsist more efficient and will better back everything elements of their business.

    With that, I will eddy to the numbers. First quarter consolidated revenue was $989.5 million, a lessen of 0.6% versus the prior year, with an augment in consolidated same-store sales of 0.3%, offset by an unfavorable impact from foreign exchange translation of 70 basis points, fewer stores and reduction in sales for their Beauty Systems Group full-service business. Sally Beauty Supply delivered positive same-store sales, driven by progress in the US and Canadian business, which was partly offset by weakness in the UK and Europe. They continue to view improvement against the supply chain issues that Have been impacting the Beauty Systems Group segments over the last few quarters.

    While that segment same-store sales were modestly negative, they did view progress against the vendor supply chain issues that had been lingering now for a yoke of quarters. The direct unfavorable impact to sales from external supply chain issues was not material. Importantly, they did grasp steps to ensure they would Have enough inventory for key launches. And my comment that the direct impact was immaterial, does not embrace those customers for whom they requisite to rebuild their relationship given prior supply chain disappointments, something that will require some time to accomplish.

    Our consolidated gross margin for the quarter was 48.6%, which represents a lessen of 30 basis points compared to the prior year. Increases in the higher-margin North American traffic at Sally Beauty Supply were offset by gross margin challenges in Europe and within Beauty Systems Group. Selling, general and administrative expenses, including depreciation and amortization expense, were $367 million in the quarter, a lessen of $4.3 billion or 1.2% from the prior year. The benefits from their transformation efforts and tighter controls over discretionary expenses across the portfolio were as expected and planned, partially offset by investments made in store wages and technology. They Have excluded restructuring suffuse from both -- charges from both adjusted operating earnings and adjusted diluted earnings per share. Additionally, they Have excluded the one-time tax benefits from the prior year from adjusted diluted earnings per share.

    Adjusted operating earnings and adjusted operating margins were $113.7 million and 11.5%, respectively, compared to $115.3 million and 11.6%, respectively, in the prior year. Adjusted diluted earnings were $0.57 per share, growth of 11.8% compared to the prior year's $0.51 per share, driven by the impact of US tax reform on their consolidated effective tax rate and reduced share import from past share repurchases. The company continues to generate strong cash flow from operations, which was $50.3 million in the quarter, and operating free cash flow which was $26.5 million in the quarter. Inventory was up 4.4% from the prior year to $982.5 million, driven by a yoke of factors, namely the impact of recent product launches, the expansion of distribution rights for Beauty Systems Group, partially offset by a stronger US dollar on reported inventory levels. They will manage this down over time in connection with their efforts with their vendors, their supply chain modernization and proactive steps by merchandising.

    Lastly, there were no stock repurchases made in the quarter and the outstanding balance on their asset-based revolving line of credit remained at zero at the End of the quarter. In addition, cash and cash equivalents were $102.8 million at the End of the quarter, an augment of $23.5 million or 30% over the prior year. As they Have stated before, they will prioritize needed investments in their traffic that they believe will deliver value for their shareholders and then focus on measure debt repayment within their ratings guidance and only then will they deem recrudesce of capital to shareholders. They are still in a leveraged position toward the higher End of their preferred leverage ratio of 2.5 to 3 times EBITDA. They remain committed to making progress against their leverage levels over time.

    Turning to brief segment performance. In the first quarter, their Sally Beauty segment generated revenue of $580.6 million, a lessen of 0.8% compared to the prior year. foreign currency translation had an unfavorable impact on the segment's revenue growth in the quarter by 90 basis points. Same-store sales increased by 0.7% for the quarter, with larger increases in the US and Canadian business, partially offset by meaningful declines in Europe, and the uncertainties surrounding Brexit and protests in Continental Europe. They moreover continue to outcome meaningful progress with Sally's US and Canadian e-commerce traffic in the quarter, which helped deliver e-commerce revenue growth of 40.6%. They hope to continue to invest aggressively in improvement for the overall online customer experience. The anecdote in Sally Europe was similar with e-commerce revenue up 34.2%.

    Gross margin for the segment was flat at 54.6%, driven primarily by improvements in the US and Canada from optimized pricing and promotional activity, which was offset by weakness in Europe. Segment operating earnings were $90 million in the quarter, an augment of 3.9% versus the prior year, primarily driven by lower selling, general and administrative expenses from their transformation efforts, partially offset by the decline in total revenue, related to a lower store import versus the prior year.

    Now, turning to the Beauty Systems Group segment. BSG's revenue in the quarter was $408.8 million, a lessen of 0.1% versus the prior year, driven by a selfsame store-sales decline of 0.6% and an unfavorable impact of foreign currency translation of approximately 40 basis points, mostly offset by a full quarter of revenue contribution from the acquisition in Canada that closed in December 2017. BSG's gross margin was 40% in the quarter, down 80 basis points from the prior year, driven primarily by a category of amalgamate shift, increased promotional activity and timing of vendor funding, related to process changes made by the BSG merchandise team. I want to emphasize that approximately half of the decline in gross margin was driven by the unintended consequences of their merchandising transformation and is addressable as they pushover through the year. The remaining dilution was driven by amalgamate shift and purposeful promotional choices as the traffic reacted to soft sales results early in the quarter. The margin at BSG is receiving violent focus within their team. Segment operating earnings for BSG were $62.3 million, down 3.5% in the prior year, driven by lower gross margin, partially offset by lower operating expenses from their transformation efforts.

    Now, let's eddy to their guidance for fiscal year 2019, and it's a very simple story. They are maintaining their full year guidance for fiscal '19. They had a decent quarter, they had a lot to do. They are cautious of the macro environment in which we're operating. However, the first quarter did demonstrate solid progress, and they saw signs of traction on key investments in parts of their business, that gave us confidence in maintaining their guidance for the year.

    Finally, I'm going to close my comments with some accounting housekeeping, specifically the impact of two recent accounting standards, revenue recognition and leases. In May 2014, FASB issued ASU 2014-09, revenue from contracts with customers, which introduced recent guidance on how an institution should measure revenue in connection with its sale of goods services to a customer based on the consideration expected in exchange for those goods and services. At the genesis of this fiscal year, they adopted ASU 2014-09. The recent measure did not Have a material outcome on their consolidated financial statements or on their internal controls or financial reporting, nor outcome they believe that the recent measure will Have a material outcome on their consolidated financial statements on an ongoing basis.

    In February 2016, FASB issued ASU number 2016-02 leases, which will require most leases to subsist reported on the balance sheet as a birthright of exhaust asset and lease liability. The recent guidance further requires the leases to subsist classified and inceptioned as either finance leases or operating leases. everything of their leases are expected to subsist classified as operating leases. They will adopt the recent lease guidance on October 1, 2019, and Have completed a prefatory assessment. As at December 31, 2018, adoption of the lease guidance will Have resulted in recognition of their birthright of exhaust asset and the estimated amount approximately $525 million and a lease liability for a similar amount in their consolidated balance sheet. Importantly, based on what they know today, they outcome not believe adoption of the lease guidance at the start of the next fiscal year, will Have a material impact on their consolidated results of operations or consolidated cash flows. Their Principal Accounting Officer, Brett Baxter, has joined us to respond any additional questions on these topics during the mp;A.

    In summary, they remain confident that they are doing the birthright things to continue to ameliorate the traffic and set aside Sally Beauty Holdings up for long-term success. They understand the challenges, they understand the requisite to execute, and they are marshaling their resources in such a artery as to promote success of their plans.

    Thank you for your time this morning. Now, I'd affection to eddy the summon back over to Chris.

    Christian A. Brickman -- President and Chief Executive Officer

    Thank you, Aaron. And with that, I will eddy it back over to the operator so that they can grasp your questions.

    Questions and Answers:


    Thank you. (Operator Instructions) And their first question will compass from the line of Rupesh Parikh with Oppenheimer. Your line is open.

    Rupesh Parikh -- Oppenheimer & Co. Inc. -- Analyst

    Good morning, and thanks for taking my question. So, on the Sally Beauty Business, so clearly it sounds affection Europe was a drag during the quarter. Is it just to Say maybe then US traffic could subsist up 1.5% to 2% or is there any more color you can provide?

    Christian A. Brickman -- President and Chief Executive Officer

    Rupesh, they don't shatter apart those segment results, but obviously, you've got multiple puts and takes in the Sally Beauty segment. You've got the lapping the hurricane out of Puerto Rico, you've got some accounting capitalize with the loyalty program, although it will subsist neutral for the year. And finally, you've got the negative associated with Europe. Net-net, that's about a wash, it's slight tailwind. And overall, though, we're really pleased with the progress Sally made it, it had a mighty quarter, and hopefully, we'll continue to view those trends.

    Rupesh Parikh -- Oppenheimer & Co. Inc. -- Analyst

    And then as you view at the Europe business, how long outcome you mediate that drag will last? And as you view at the environment the past quarter, were there more promotions, clearance activities, is that will wait on your gross margins?

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    Well, I mediate what they would Say is, far subsist it for us to forecast when Brexit will truly resolve itself or when the civil unrest in France will compass to conclusion, it has had an impact on retail and as well as their own results. The qualified news is they are making progress on optimizing their business, and they are actually seeing the capitalize of the actions we've taken in the last year so that as they tug levers, they can respond to the challenges they see.

    Rupesh Parikh -- Oppenheimer & Co. Inc. -- Analyst

    Great. Then my final question. On your free cash flow, it was down more than 50% year-over-year. It sounds affection inventory was one driver. Just inquisitive what some of the other drivers were there just contributing to that shortfall or the decline year-over-year?

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    Yes. I wouldn't read too much into it, to subsist honest. They did -- they did outcome a yoke investments over the course of the quarter, tiny M&A as well as the investment in inventory. We're confident in the overall guidance for the year.

    Rupesh Parikh -- Oppenheimer & Co. Inc. -- Analyst

    Okay, great. Thank you.

    Christian A. Brickman -- President and Chief Executive Officer

    Thanks, Rupesh.


    Thank you. Their next question comes from the line of imprint Altschwager with Baird. Your line is open.

    Mark Altschwager -- Baird -- Analyst

    Good morning. Thanks for taking the question. Following up quickly on the Sally Beauty comp, I'm wondering if you could just give us a sense for how much traffic contributed to the improvement in North America versus higher AUR related to the recent two-tiered pricing structure?

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    We saw improvements in traffic trends without quantifying it. They moreover saw higher AURs, as you called out.

    Mark Altschwager -- Baird -- Analyst

    Great. And then on the loyalty, exciting to hear you're capturing data on 60% of the transactions with the recent program. What inning are you in, in terms of having the systems and processes in Place to leverage that data within your marketing program? Is that a anecdote for this fiscal year or something to view forward to next year and beyond?

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    We would Say they believe that the loyalty program is already having an impact -- a positive impact on their guest flavor as well as the traffic trends we're seeing. That said, it's only 90 days in, so they Have more to do. We're going to continue to invest behind it from a guest flavor perspective as well as the data science that goes with now having such a close paw point with their customers, and are thinking about how outcome they further deploy across their network as well as rapidly ramp up the execution of their draw on loyalty, but so far, we're very pleased.

    Christian A. Brickman -- President and Chief Executive Officer

    Just to add to that, Mark. I mean, there's two parts to the program that build over time and you summon out both. One is the number of people in the program, which they hope to continue to build that number significantly and the second is your faculty to then exhaust the data to tender more germane offers. Both of those will build from here. So we've certainly not seen the full impact or anywhere close to it at this point.

    Mark Altschwager -- Baird -- Analyst

    Got it. And then just one last one, switching to BSG. The comp decelerated a yoke hundred basis points on a two-year basis despite some of the recent brand wins, and it sounds affection then less of your supply chain pressure. So may subsist if you could just assist us better understand some of the puts and takes on the comp there, how to mediate about the progression through the remnant of the year and just may subsist any color on category smooth trends at BSG? Thank you, so much.

    Christian A. Brickman -- President and Chief Executive Officer

    Yes. Aaron, why don't you build on this. I mediate the reality is, it did account for some sequential improvement quarter-to-quarter. fraction of this is self-inflicted. So we've, obviously as they mentioned, had some change in their merchandising organization, and we're working their artery through that. They mediate we're making qualified progress on it. Some of it they believe is some lingering impact associated with the fact that they had significant supply chain disruption, and they disrupted some of their guests, and we're probably paying a runt bit of a expense for that. Over time, they hope that will fade away. And then last is, we've got to bring more innovation to market, which you'll view us doing in the next yoke of quarters. So I mediate although they are disappointed with that result, they mediate it'll bag better from here, and we're working arduous on it.

    Aaron, I don't know if you want to add anything to it?

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    I would just observe that the comp was a 68 basis points improvement over the prior at selfsame time as well as a quarter-on-quarter improvement. still negative, still work to do, but we're pleased with the progress the team is making there, but certainly, it relates to regaining the customers that they disappointed from not having the inventory thereafter in the earlier yoke of quarters.

    Mark Altschwager -- Baird -- Analyst

    That's helpful. Thanks again, and best of luck.

    Christian A. Brickman -- President and Chief Executive Officer

    You bet. Thank you, Mark.


    Thank you. Their next question comes from the line of Oliver Chen with Cowen and Company. Your line is open.

    Oliver Chen -- Cowen and Company -- Analyst

    Thank you. qualified morning. Chris, on the traffic question, how would you assess the traffic trends at Sally versus BSG and where you view break there? And as you outcome identify customers, one of the key opportunities is unlocking traffic. What are your thoughts about the edifice blocks and timing and what will subsist some of the bigger ideas to assist with that traffic?

    And Aaron, the supply chain changes are quite innovative and really appear affection a qualified path to digitization. Could you talk to us a runt bit about the sequencing of the events and how the -- how you've thought about sequencing to minimize risk with the closures and openings and moreover on the JDA side, which is another tremendous change to managing risk during change? Thank you.

    Christian A. Brickman -- President and Chief Executive Officer

    There's lots there. So I'm going to grasp a start, then I'll hand it over to Aaron to pick up on that. First of all, I think, as Aaron mentioned, traffic trends at Sally Have been improving. There's lots of components to continuing to outcome that -- continuing for the rest of the year in future years. Some of it's loyalty, as they discussed, some of it's edifice a stronger loyalty database and their faculty to market that database. Some of it will subsist their marketing and media, and we're working on that in terms of how they advertise. Some of it will subsist promotions.

    So as you heard, we've been pushing a fewer, deeper, bigger promotional strategy, where they try and shatter through the clutter with fewer promotions, but deeper ones when they evanesce that shatter through the clutter that the consumer sees. And everything of those play a role and obviously, everything the recent products that we're bringing in, that differentiate us and bring recent consumers to their stores. So everything of those are going to play an element and obviously, we're working on the longer term pieces as well, such as their digital platform and their Vegas test in terms of recent stores. So lots of moving pieces relative to driving traffic, and we're at early stages, and what they want to outcome is continue to trend.

    At BSG, as they mentioned, fraction of it has to be, they Have to rebuild their relationship with some of the customers they aggravated and disappointed during the supply chain issues. We're working on that. I mediate the team's in a much better position now than they were three or six months ago. And we're working with their vendors on that. And then fraction of it is bringing recent innovation to the stores, whether that'd subsist recent color lines, recent hair care lines, and moreover recent exclusive innovation, whether that'd subsist with their vendors or through their own brands.

    So both of those -- everything that's playing a role. I know there's a lot there, but I mediate overall, we're in a qualified position as they knock down some of the challenges in some of the -- as well as some of the initiatives we're tackling in order to pushover the traffic forward. Aaron, I don't know if you want to add to that or -- and moreover pushover on to the supply chain piece.

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    I'll pushover on to the supply chain piece. Thanks for the question. Here is how I described it. With respect to their supply chain, those are -- those things that they outcome to ourselves and those things that are done to us. In the context of that which we've done to ourself is the physical infrastructure of their supply chain network is overly complex, the product of decades of acquisitions, and it's never been rationalized, optimized or integrated across the businesses. And so the edifice closure -- edifice closures we're announcing today, they are stand-alone, they don't require changes to their systems, they don't require integration with third parties. These are efficiency opportunities that are birthright in front of us, that will assist us to subsist more efficient with their vendors on where they set aside their inventory, how much inventory they Have and the cost of servicing their stores as well as their e-commerce business.

    It's moreover the case in the context of what we've done to ourselves as we've got subpar technology in the buildings and across the network overall, and you've heard us talk about the JDA implementation, which will certainly help. The further call-out today around OMS and their faculty to bag to a Place where their supply chain is flexible, that they will build into over-time. They Have a road map there, we're emotion qualified about what this will view like, and it will tie in to a broader vision of integrating across their channels, across their businesses with one seamless supply chain.

    In the context of what's been done to us from a supply chain perspective, it's the case that they haven't had the vendor accountability that they should Have for a retailer of their size, and they Have been cautiously testing with a yoke of key vendors on what that looks affection as they carry forward making qualified progress. That will moreover back and assist derisk the changes we're making to the distribution nodes that they announced today.

    And the other piece I would set aside on this is again merchandising transformation. We've been added now for six or nine months in that way, erudite a lot as they went through it. We've had some unintended consequences that we've actually been adding talent to that team under the direction of their Chief Merchant, and we're emotion qualified about where we're going there and how that will then tie-in from a planning and the allocation perspective into their supply chain and where they carry forward.

    So just to summarize quickly, the edifice announcements we're making today, these are quick wins. They don't requisite to outcome anything else to bag quick capitalize from making those changes. They are testing extensively across virtually every element that is touching their supply chain. And in particular with system changes affection JDA, what I'd narrate you is they are being very cautious on the implementation. The team is getting fairly tired of how cautious we're being from a test and learn, test and learn, and we'll then grasp the next step perspective, but they mediate it's the birthright artery to approach such a material change to their operating systems.

    Oliver Chen -- Cowen and Company -- Analyst

    Thank you. That's really helpful. Their last question is about merchandising and how outcome you mediate your product and merchandising will evolve in the context of the supply chain changes as well as fewer, bigger, deeper and moreover acknowledging how much private label penetration plus expansion opportunities there are? Because what outcome you view happening with the SKU breadth and what you mediate the customer wants in terms of balancing recent versus existing as well as product amalgamate and making sure you're germane to younger customers, would worship your thoughts because product is kindly of touching a lot of different aspects of how you're engaging in change.

    Christian A. Brickman -- President and Chief Executive Officer

    I mediate -- Oliver, I mediate the veracity is that their merchandising organization was not as probably ripen as most other retailers. And so, we're making a major investment, as Aaron mentioned, in talent in that organization. I don't mediate SKU breadth will evanesce up because they Have a lot of extinct SKUs that probably requisite to compass out. They were not really very qualified at that sun-setting SKUs that had been launched years ago and had lost their effectiveness or efficacy. And so there's a chance to prune those while they bring in recent merchandise. And you're right, they will subsist very focused on bringing recent exclusive brands as well as recent own brands into the market, and their goal obviously is to create excitement first in their core categories. So you're going to view a lot of innovation in color and care, and that'll subsist a amalgamate of exclusive relationships, more BSG and own brands as well as relationships with influencer-linked brands at Sally. And then you'll view other innovation outside of that where they might bring in more known brands or widely distributed brands in some of the other categories that fit well into the fewer, deeper, bigger strategy of promoting those brands to bring traffic into the store.

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    I mediate I would add to that. Differentiation for us from a strategy perspective is critical, and they understand that, and that will Have a number of elements. You heard Chris talk at some length around the innovation efforts that Have been under way. You're going to hear more from us on that in quarters ahead as they carry forward, because they understand that their assortment is a key fraction of who they are and why their clients are coming to Sally Beauty versus going to mass (ph) or elsewhere.

    With respect to SKU breadth, while we'll constantly Have innovation, we're going to subsist very observant on what that means from an inventory and confusion perspective with their clients, and actually, we've got initiatives under artery to bring their SKU breadth down as you would hope with qualified fiscal management, particularly as they launch the recent concepts in Las Vegas. They are testing and learning on how far can they evanesce on that respect to bag the path which comes from the differentiation, but not overinvest in inventory. So I'm quite excited about what they Have under artery within Sally. From a merchandising perspective, I mediate it's going to -- the investment for us is going to subsist well worth it, as they carry forward.

    Oliver Chen -- Cowen and Company -- Analyst

    Thank you. The details are really important, solid quarter, best regards.

    Christian A. Brickman -- President and Chief Executive Officer

    Thanks, Oliver.


    Thank you. Their next question will compass from the line of Simeon Gutman, with Morgan Stanley. Your line is open.

    Xian Siew -- Morgan Stanley -- Analyst

    Hi, guys. This is Xian Siew on for Simeon Gutman. They just wanted to kindly of dig into the US improvement a bit more and mediate about how box color is doing on a sequential basis? Is it kindly of driven by better marketing or better products? You kindly of mentioned that box color is incremental, but any kindly of color on that?

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    So here's how you should mediate about box color. Box color for -- the first judgement for us to launch box color is to add items to the basket for a significant portion of their customers who are already in their stores and who are leaving their stores to buy box color elsewhere because they were fairly intimidated by pro color at home, right? They Have seen success in that respect, and we're quite pleased with the launch of box color in their stores. They are running ahead of their internal draw relative to sales of that product.

    The second strategy for box color is to, at some point, start to reclaim or gain customers from mass and other people who are buying a lower-quality box color somewhere else. We've started initial steps in that respect as well and you'll start to view marketing popping up around the country, calling out their capability there, particularly on their quality. But for the moment, their accent is in-store execution or their own online execution around box color to really add to the basket. affection I said, we're tracking ahead of plan. They Have not disclosed what their internal plans are, but so far so good.

    Christian A. Brickman -- President and Chief Executive Officer

    And just one tiny add, as I mentioned on the call, we're adding 10 additional shades for a total of 20, that will evanesce in before the End of Q2. And it was really indispensable to us that they got to a full palette of shades before they start that second leg to the strategy, that Aaron mentioned, which is to inaugurate to recruit mass customers. So at this point, it's more about serving current customers who are leaving the store to buy color elsewhere.

    Xian Siew -- Morgan Stanley -- Analyst

    Okay. Thanks. And then just as a quick follow-up, just wanted to hope a bit more about the cost savings opportunity, how much more is there through the year? And as they mediate about kindly of other headwinds, you've kindly of invested already in wages. Are there any other kindly of tremendous headwinds remaining on costs?

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    Look, what I would Say is they Have not yet achieved full hasten rate of the savings we've already identified. They will bag there toward the End of this year, although some of those will bleed into '20. And so what you should grasp from that is that, they continue to Have break coming their artery that we're actively tracking and pursuing within the traffic and as evidence of that, I would point to some of the progress against SG&A that the traffic made, even in Q1, that we're quite pleased with. And I forgot the second fraction of your question.

    Xian Siew -- Morgan Stanley -- Analyst

    Yes. Well, first it was just kindly of the buckets of the cost savings. And then on the other side, are there any other kindly of headwinds for example affection people Have been investing in wages?

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    So great. The two primary headwinds that they saw from an SG&A perspective as they walked into this fiscal year was going to subsist the requisite for further investments in wages given the labor environment in which we're operating as well as the significant investments we're making in the business. For us, the investments for '19 are known, and we're on track against those plans. They Have -- there hasn't been a deviation. So I wouldn't summon those a headwind. I would summon them, they're fraction of their draw consistent with their guidance.

    Labor, they continue to monitor literally every month with their stores teams, but they are addressing that as they requisite to moreover drive into further efficiencies on how they draw the labor they deploy across their network, and we're making mighty -- the stores teams are making mighty progress there as well. And so everything I can Say is they feel affection we've got their arms wrapped around it. There's nothing different so far than what they were expecting, and we're cozy in adage that they are confirming their guidance on that basis.

    Xian Siew -- Morgan Stanley -- Analyst

    Okay. Thank you.


    Thank you. Their next question will compass from the line of Olivia Tong with Bank of America. Your line is open.

    Olivia Tong -- Bank of America -- Analyst

    Good morning. Thanks. First, I just want to kindly of revisit cash flow because I know you said you don't read too much into it and you're confident on reaching your full year target, but obviously, the magnitude of the decline relative to last year is pretty meaningful. So can you assist us build the confidence that you Have with the slower start on free cash flow generation, how you bag there through the remnant of the year?

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    Sure, joyful to. Yes. There -- in addition to the investment in inventory, I mediate I called out during their guidance at the End of Q4 that they were moreover taking steps with respect to their IP, and I suspect the contrast you're seeing is driven by those two factors.

    Olivia Tong -- Bank of America -- Analyst

    Got it. So you're expecting that, that's a particularly hefty investment birthright now and that will -- obviously, that will Have huge window as the year progresses, and is that the key factor that's driving improvement?

    Christian A. Brickman -- President and Chief Executive Officer

    Yes, it's one of the things going on. I mean, those are legion -- there's a legion out there from a maybe to set aside a runt more color around the AP anecdote as they optimize the P&L, right, while they Have the break to obtain further discounts and ameliorate their cost of goods, right, and they are investing again, so as I called out during their earlier guidance.

    Olivia Tong -- Bank of America -- Analyst

    Got it. And then can you talk about some of the initiatives -- you've got a bunch of mighty initiatives that you talked about during the call. Are you already accruing for the cost of some of these initiatives, whether it's a click and collect or some of the other things that you're doing or should they hope overall that cost will continue to augment as you fund those initiatives?

    Christian A. Brickman -- President and Chief Executive Officer

    I mediate it's going to subsist -- it's everything in their plan, and I don't mediate -- many of those initiatives are technology initiatives, they're store initiatives and obviously, there are some initiatives such as service delivery model initiatives and obviously, their digital platform initiatives. So many of those don't drive significant changes in OpEx or spending, but the reality is, there's going to subsist investments as they launch them. So it's everything laid out in the plan, it's everything in their guidance for the year. We're tracking them rigorously. They Have a team that basically tracks every separate week how the progress we're making and manages any deviations accordingly. So I don't mediate it should drive us in any artery off of the -- their current trajectory.

    Olivia Tong -- Bank of America -- Analyst

    Got it. Thanks so much. value it.

    Christian A. Brickman -- President and Chief Executive Officer

    You bet.


    Thank you. Their next question comes from the line of Joe Altobello with Raymond James. Your line is open.

    Joe Altobello -- Raymond James -- Analyst

    Thanks. Hey, guys, qualified morning. So first question, just a housekeeping item, you mentioned earlier that you did view a runt bit of a capitalize on the accounting side in the transition to the recent loyalty program. Could you quantify how much of that helped the Sally comp in the quarter?

    Christian A. Brickman -- President and Chief Executive Officer

    No. Joe. I'll let Aaron jump in here. Joe, what the respond I gave earlier is the respond they can give really which is, there were some puts and takes in the quarter, they were lapping obviously the hurricane in Puerto Rico. They had a tiny capitalize from the accounting capitalize associated with the shift to loyalty, and they had a pretty significant headwind associated with Europe, and the net of everything of those is a slight tailwind.

    Joe Altobello -- Raymond James -- Analyst

    Okay. So it wasn't a major impact on the comp in the quarter?

    Christian A. Brickman -- President and Chief Executive Officer


    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    I would add qualitatively as precedence of Sally in the US and Canada that I was quite pleased with the same-store sales results of Sally in US and Canada.

    Joe Altobello -- Raymond James -- Analyst

    Okay, that's helpful. And then secondly, you guys Have talked a few times this morning and over the last few months about revamping the promotional strategy; fewer, deeper promotions. You've got a customer groundwork that I mediate is pretty well set in a artery sometimes. How Have they taken to that recent strategy? It sounds affection pretty well at least given the indication they saw this morning, but any issues with that in terms of the customer groundwork being a runt set aside off by the recent promotional strategy?

    Christian A. Brickman -- President and Chief Executive Officer

    No, I mediate we're going to subsist expanding that to BSG as well in coming quarters. But the reality is, Joe, mediate about it affection this. As they mentioned in the call, there is a significant portion of their traffic that is exclusive, their own brands. And what you're seeing it's doing is pulling promotional activity out of those categories that are not as price-sensitive or that are not available elsewhere and then investing to evanesce deeper in categories that are highly competitive in order to win traffic from competition, and the last fraction of that is bigger, which has been integrating those fewer promotions across everything of their media and marketing platforms. That strategy is working very well with their customers, they mediate it's core to their turnaround strategy, and they will expand that to BSG in the coming quarters as well.

    Joe Altobello -- Raymond James -- Analyst

    Okay. qualified to hear. Thank you, guys.


    Thank you. Their next question will compass from the line of Ike Boruchow with Wells Fargo. Your line is open.

    Lauren Frasch -- Wells Fargo -- Analyst

    Good morning, everyone. This is Lauren Frasch on for Ike. Congratulations on a mighty quarter. Given the ongoing Europe volatility that you're seeing combined with a bit of BSG weakness, what signs are you seeing that provide confidence that margin headwinds are going to dissipate throughout the year to bag to your guidance? Can you still compass that outlook if these don't inflect? And could you talk about any steps you're taking to combat these margin trends? Thank you.

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    We're joyful to outcome so. I mediate during my earlier comments, I observed that half of the 80 basis point margin decline was due to the unintended consequences of their merchandising transformation. I would -- what I would set aside within that bucket are things that are well within their control, for which they took their eye off the ball. Things that -- things affection striking the deal with a vendor before they hasten the promotion, things affection making sure we're paying consistent with their discount terms, things affection ensuring that the buying is happening in the birthright time period.

    The focus on the BSG margin is relentless, internally at this instant because they bag it, they understand that, that's where their focus needs to be. Changes are already occurring both within PSG, within their merchandising team to ensure that their processes are improved, that their technology is enabling where they requisite to bag to, and that the focus is in the birthright Place to ensure that as they carry through the year, BSG is able to follow the track that the Sally Beauty segment is on relative to continued margin improvement.

    And so I would narrate you that it will always subsist the case that they will track what their customer needs and that they will hasten promotions from time to time. As Chris has alluded to, they will subsist optimizing that within the BSG traffic and weigh some more to Sally as they carry forward so that's delayed relative to -- that's following the Sally business. But there are a lot of things that they just requisite to outcome better that we've got a relentless focus on as they carry forward.

    Lauren Frasch -- Wells Fargo -- Analyst

    Great. Thank you.

    Christian A. Brickman -- President and Chief Executive Officer

    Thank you.


    Thank you. We'll evanesce to the line of William Reuter with Bank of America. Your line is open.

    William Reuter -- Bank of America -- Analyst

    Good morning. In terms of the draw for a recent DC in Texas, is that something you'll hope that you would subsist edifice or you're going to subsist purchasing an existing one, will you lease it? Have you -- outcome you Have any thoughts on that at this point?

    Christian A. Brickman -- President and Chief Executive Officer

    I'll let Aaron dig in. My guess is they will view at everything options. So the respond is, well, they will investigate everything of those options. The key is that they will subsist putting up a large integrated facility that will cover both businesses in the Texas market.

    William Reuter -- Bank of America -- Analyst

    Okay. In terms of a 500,000 square foot DC, that seems pretty large. outcome you Have any sense for context about something affection that, what it would cost, as I just mediate about CapEx over the next yoke of years?

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    I outcome Have qualified context on what it would cost. They are well down the design and implementation process in connection, we're thinking about where their needs are geographically, mechanically, with respect to the capabilities. They Have built into the current $120 million of capital estimate for the year, approximately $18 million of that will subsist tied to this improvement, and there will subsist a much smaller amount in '20 as it carries forward. The facility will not subsist operational until '20 obviously, but we're starting the work now.

    William Reuter -- Bank of America -- Analyst

    Okay. And then just lastly from me, previously, you had mentioned that you would probably not outcome any additional share repurchases this year as you focus on taking down your leverage metrics. Is that still the focus?

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    I would Say what I've said before, which is we're going to invest first in the business, and you're seeing examples of that on this earnings call, than we're committed to bringing their leverage down, tarry tuned on that. And only after they Have the -- those two things accomplished to their comfort smooth will they repurchase shares. They Have -- I mediate I Have said categorically previously that they Have no plans to repurchase shares during '19, that continues to subsist the case.

    William Reuter -- Bank of America -- Analyst

    Great. Thanks for the update.

    Christian A. Brickman -- President and Chief Executive Officer

    Thank you.


    Thank you. They will evanesce to the line of Linda Bolton Weiser with D.A. Davidson. Your line is open.

    Linda Bolton Weiser -- D.A. Davidson -- Analyst

    Hi. I believe that two quarters ago, you talked about in Sally Beauty, some expense adjustments to subsist more competitive. But then last quarter, you actually talked about some expense increases that helped gross margin. So -- has the capitalize of those expense increases continued to carry forward, and can you just update us kindly of where you are in looking at sort of some of the pricing strategies? Thanks.

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    Sure. So I'd approach it in a yoke of ways. Obviously, they went from a three-tier to a two-tier model as fraction of the loyalty change, emphasizing a lower expense for their pros versus harmonizing their retail price. From a capability perspective, they continue to view at their pricing by category, where outcome they Have differentiation that supports higher expense versus where are they operating in categories that are much more competitive such that they requisite to subsist lower. I would Say we're fraction of the artery down that journey. They are benefiting from their changes to their promotional pricing approaches, there's no doubt about that, but they still Have work to outcome in some key categories where they believe they should subsist at parity with other players in some of those categories, and we're continuing to optimize that as they carry forward.

    Christian A. Brickman -- President and Chief Executive Officer

    Yes. And I would say, Linda, in general, across both businesses, the biggest driver of margin will subsist the shift to a fewer, deeper, bigger approach to promotions, much more so than individual pricing activity in any one category.

    Linda Bolton Weiser -- D.A. Davidson -- Analyst

    Great. Thanks.

    Christian A. Brickman -- President and Chief Executive Officer

    Thank you.


    Thank you. And with that, Chris, I'd affection to eddy it back over to you for any closing comments.

    Christian A. Brickman -- President and Chief Executive Officer

    Well, thanks, everyone, for your questions today. To summarize, they are playing to win by refocusing their traffic around their differentiated core of hair color and care, improving their execution of basic retail fundamentals and advancing their digital commerce capabilities. They are continuing to drive out costs out of the traffic at the selfsame time, which is enabling the investment in their transformation program. They believe that these strategic investments will accelerate growth in their highly differentiated categories of color and care, and maintain us on the path to long-term earnings growth. Thank you for joining us today.


    Thank you. And ladies and gentlemen, today's conference summon will subsist available for replay after 9:30 AM today until midnight, February 12. You may access the AT&T teleconference replay system by dialing 1800-475-6701 and entering the access code of 461464. International participants may dial 320-365-3844. Both numbers once again, 1800-475-6701 or 320-365-3844 and enter the access code of 461464.

    That does conclude your conference summon for today. Thank you for your participation and for using AT&T Executive TeleConference Service. You may now disconnect.

    Duration: 61 minutes

    Call participants:

    Jeff Harkins -- Vice President of Investor Relations and Strategic Planning

    Christian A. Brickman -- President and Chief Executive Officer

    Aaron E. Alt -- Senior Vice President and Chief financial Officer

    Rupesh Parikh -- Oppenheimer & Co. Inc. -- Analyst

    Mark Altschwager -- Baird -- Analyst

    Oliver Chen -- Cowen and Company -- Analyst

    Xian Siew -- Morgan Stanley -- Analyst

    Olivia Tong -- Bank of America -- Analyst

    Joe Altobello -- Raymond James -- Analyst

    Lauren Frasch -- Wells Fargo -- Analyst

    William Reuter -- Bank of America -- Analyst

    Linda Bolton Weiser -- D.A. Davidson -- Analyst

    More SBH analysis

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    Future of Content Marketing: traffic & Scaling Beyond the racket | actual questions and Pass4sure dumps

    Content marketing growth is about evolution, not revolution.

    There has been no revolution in the content marketing space. People Have been publishing content since the days of cavemen carving on cave walls. The rapid fusion of search and gregarious digital technologies combined with a rapid want from consumers and audiences to engage in recent and creative ways has set aside content marketing as the hotspot on the search marketing ‘heat map’.

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    To scale character and germane content, your culture needs to become the key driver of the following model.

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  • Essential Further Reading:

    Audience centric content culture starts with what the audience wants and can then subsist matched to what your company can tender them. This should subsist objectively driven.

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    Essential Further Reading:

    Ensuring that you set your objectives (aim, message and goals) – brand awareness, product marketing, require generation, sales creation, customer marketing and thought leadership – allows you to then focus on how your traffic can efficiently build assets/content forms that engage with your audience and scale production within your traffic efficiently.

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    This is without doubt the biggest challenge that businesses face. Content can descend flat without a rigid process in Place for content production, curation, and distribution.

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    Producing character content (in line with 1 and 2 above) is a entire different ballgame where set playbooks don’t apply. Creative process applies.

  • Ensure that you Have a process in Place that allows you to create compelling content using your brightest minds. Manage your content marketing talent.
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    Essential Further Reading:

    The content creation, curation, and distribution process is where strategists and master tacticians thrive. Creative rules in this environment. From co-created, crowds-sourced and co-branded through to visual, gregarious and influence based search and strategies and tactics – now is the time to shine. In order to “shine,” you requisite to measure.

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  • Media Value Measure

    Essential Further Reading:


    When people hope me “why does x capitulate so much more content than y” and “how does x create so much engagement and drive z amount of demand,” I always highlight three things that effective content marketing businesses have:

  • A community culture of content across everything its organization – creators, collaborators and authors – no content silos. It isn’t just the role of marketing to capitulate content.
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    Author’s Note: Hat tip to Alex and Anna Moss at Firecask for helping me check this and keeping me sane whilst I wrote this.

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    Operations & Process Management: Principles & Practice for Strategic ImpactOperations & Process Management: Principles & Practice for Strategic Impact
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    Publisher : Pearson (Feb 2018)
    ISBN10 : 129217613X
    ISBN13 : 9781292176130
    Our ISBN10 : 129217613X
    Our ISBN13 : 9781292176130
    Subject : Business & Economics
    Price : $75.00
    Computer Security: Principles and PracticeComputer Security: Principles and Practice
    By William Stallings, Lawrie Brown
    Publisher : Pearson (Aug 2017)
    ISBN10 : 0134794109
    ISBN13 : 9780134794105
    Our ISBN10 : 1292220619
    Our ISBN13 : 9781292220611
    Subject : Computer Science & Technology
    Price : $65.00
    Urban EconomicsUrban Economics
    By Arthur O’Sullivan
    Publisher : McGraw-Hill (Jan 2018)
    ISBN10 : 126046542X
    ISBN13 : 9781260465426
    Our ISBN10 : 1260084493
    Our ISBN13 : 9781260084498
    Subject : Business & Economics
    Price : $39.00
    Urban EconomicsUrban Economics
    By Arthur O’Sullivan
    Publisher : McGraw-Hill (Jan 2018)
    ISBN10 : 0078021782
    ISBN13 : 9780078021787
    Our ISBN10 : 1260084493
    Our ISBN13 : 9781260084498
    Subject : Business & Economics
    Price : $65.00
    Understanding BusinessUnderstanding Business
    By William G Nickels, James McHugh, Susan McHugh
    Publisher : McGraw-Hill (Feb 2018)
    ISBN10 : 126021110X
    ISBN13 : 9781260211108
    Our ISBN10 : 126009233X
    Our ISBN13 : 9781260092332
    Subject : Business & Economics
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    Understanding BusinessUnderstanding Business
    By William Nickels, James McHugh, Susan McHugh
    Publisher : McGraw-Hill (May 2018)
    ISBN10 : 1260682137
    ISBN13 : 9781260682137
    Our ISBN10 : 126009233X
    Our ISBN13 : 9781260092332
    Subject : Business & Economics
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    Understanding BusinessUnderstanding Business
    By William Nickels, James McHugh, Susan McHugh
    Publisher : McGraw-Hill (Jan 2018)
    ISBN10 : 1260277143
    ISBN13 : 9781260277142
    Our ISBN10 : 126009233X
    Our ISBN13 : 9781260092332
    Subject : Business & Economics
    Price : $77.00
    Understanding BusinessUnderstanding Business
    By William Nickels, James McHugh, Susan McHugh
    Publisher : McGraw-Hill (Jan 2018)
    ISBN10 : 1259929434
    ISBN13 : 9781259929434
    Our ISBN10 : 126009233X
    Our ISBN13 : 9781260092332
    Subject : Business & Economics
    Price : $76.00
    By Peter W. Cardon
    Publisher : McGraw-Hill (Jan 2017)
    ISBN10 : 1260128474
    ISBN13 : 9781260128475
    Our ISBN10 : 1259921883
    Our ISBN13 : 9781259921889
    Subject : Business & Economics, Communication & Media
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    By Peter Cardon
    Publisher : McGraw-Hill (Feb 2017)
    ISBN10 : 1260147150
    ISBN13 : 9781260147155
    Our ISBN10 : 1259921883
    Our ISBN13 : 9781259921889
    Subject : Business & Economics, Communication & Media
    Price : $64.00
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