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

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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 true Questions

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Oracle Oracle Fusion CRM: Sales

What Oracle Fusion CRM in the Cloud skill for Salesforce and Siebel consumers | killexams.com true 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 add up to for competitors fancy 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 current Public Cloud.

as the newest entry in a extremely competitive market, Oracle (NASDAQ: ORCL) will ought to stand out to fetch observed. So how does it stack up against centered choices from the likes of Microsoft, Salesforce.com 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 miniature 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 essential thing dissimilarity is the Oracle Public Cloud is in line with trade specifications and helps replete interoperability with other clouds and your statistics center on premise," he stated.

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

The terminate of Siebel and CRM On Demand?

one of the vital leading ideas of the Fusion applications development trouble changed into to carry the most effective ideas, architectural patterns and enterprise practices of entire "legacy" functions (eBusiness Suite, PeopleSoft, JD Edwards, Siebel CRM, Retek, and the like) into the current 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 espy common 'Siebel patterns' in Fusion CRM. nonetheless, the necessities for CRM acquire enormously changed within the last years, so there are lots of current issues as smartly."

Hansal illustrious Siebel shoppers acquire three alternate options: linger with their legacy utility by using upgrading to probably the most mature version (Siebel 8.1.1); enlarge their existing legacy app with current functionality offered by using the Fusion purposes stack; or ditch the legacy stuff and embrace the current 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 agree with that Siebel CRM isn't dead. Too many hours and bucks/euros/rubel were spent through customers in Siebel initiatives to naively consider that they'll just dump it considering version 1 of Fusion CRM.

"whereas I usually sequel not sequel too a whole lot IT crystal balling, they should soundless espy a different decade of thriving Siebel projects, however there is a brand current flower within the backyard which they mustn't neglect (translates to: wake up and fetch 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 social 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 entire 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 entire CRM business 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 breathe extra of an instantaneous competitor to Amazon net services than force.com. 

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 Salesforce.com (and most upright 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 miniature question utilize its personal Xen-based hypervisor, OracleVM, as opposed to the enterprise common 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 upright with Salesforce, as its home windows Azure mannequin applies tenancy at the utility plane as well, he brought. 

a large selling aspect for Oracle may breathe 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 transparent 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 look to breathe 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 look on the cloud.oracle.com 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 illustrious management and Fusion Financials (Oracle eBusiness Suite) are anticipated to ensue on the SaaS layer, with an information provider to supposedly emulate Azure. loads of unknowns continue to breathe for this provider, the biggest being pricing, mentioned Staten.

while Ellison said an AWS-like pay-per-use model, he furthermore 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 miniature VM, referred to Staten.

SpringCM content Cloud capabilities Streamline revenue approaches for Oracle income Cloud (Fusion CRM) shoppers | killexams.com true 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 lone 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, entire the artery through the earnings process. The integrated solution is now obtainable within the current Oracle Cloud market.

SpringCM will parade 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 tenacious commercial enterprise-category content administration capabilities designed to residence content material to work.

the utilize of a full-featured SpringCM folder embedded in Oracle revenue Cloud, clients can with ease and hastily upload and drudgery with latest content devoid of leaving Oracle. users can edit, participate 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 entire times acquire probably the most latest content with SpringCM's prosperous assist for versioning, remove a examine at/check in, notifications and designated audit trails and handle 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 oblige approaches and "round travel" emails for experiences and approvals
  • effective search capabilities, enabling speedy finds of censorious 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 constrict 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 miniature thing sooner and more straightforward -- from constrict creation through negotiation, changes, approvals, signatures, archiving and renewals. Reps can focal point on possibilities, purchasers and closing offers, in its residence of chasing content. With Oracle income Cloud and SpringCM, organizations can straight away and dramatically enlarge their income approaches."

    About SpringCM SpringCM is a frontrunner in content material Cloud features for the enterprise. businesses deserve to sequel greater than shop and participate content -- they deserve to achieve content to drudgery 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 invoke Oracle solutions. OPN really suited offers substances to train and assist specialized skills of Oracle products and options and has advanced to recognize Oracle's starting to breathe product portfolio, ally foundation 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 http://www.oracle.com/partners.

    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? | killexams.com true Questions and Pass4sure dumps

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

    "We basically determined to remove 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 terminate of this 12 months."

    It’s a significant step for an trouble "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 current 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 supplant its Oracle E-enterprise Suite (EBS) in December. with a view to permit for an easier transition to Fusion applications, but that doesn't intimate that Pella is diving in headfirst. It at the minute runs Oracle's own CRM product from EBS and has some seats of Oracle CRM On require live.

    "there may breathe some delectation amongst their team," stated Rick Hassman, director of applications with the Pella, Iowa-based enterprise. "we acquire made a preference to fetch to [E-Business Suite] 12, so they had the pliability to pick and choose around the Fusion apps they exigency to lumber ahead with."

    Which applications Pella sooner or later adopts will breathe 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 breathe less likelihood they would lumber down that street. As we're looking at the MDM stuff, territory administration stuff, they've shown us capabilities that acquire been very inviting. I fetch notes from one among my managers in CRM: 'We simply had the demo and it seems fancy 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 pair of social CRM materiel for revenue collaboration. moreover, it became transparent from classes at OpenWorld that the Fusion CRM capabilities acquired lots of consideration. it will probably fetch 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 nascence to utilize distinctive items, entire 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 social 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 current sales of CRM at Oracle had been the CRM On require product, according to Wang.

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

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

    "the key component for shoppers is if you are coming in from Siebel, are trying to fetch onto the On require product, try to fetch 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 breathe in an upgradeable free up, you might breathe on the redress course."

    Oracle CRM purchasers thinking forward

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

    "we acquire now at entire 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 inescapable areas, will that fetch us out of sync in their total integration? Is there a haphazard one zone receives at the back of, one receives forward, and that i can not remove potential of something?"

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

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

    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 breathe often accessible in the first quarter of 2011.customers up to date on their protection and capitalize may breathe in a position to sequel 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 acquire already got achieve in.

    sooner or later, it will nevertheless breathe 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 utilize these days," Wang referred to. "In two to 3 years, the first of the functionality may breathe built out, and within the next three to four years, Fusion CRM will acquire finished parity with the foundation horizontal functionality."

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    Oracle Fusion CRM: Sales 2014 Implementation Essentials

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    Salesforce - Overvalued And Not Significantly Diversified | killexams.com true questions and Pass4sure dumps

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

    Sally Beauty Holdings Inc (SBH) Q1 2019 Earnings Conference convene Transcript | killexams.com true 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, entire lines are in a listen-only mode. Later, they will conduct a question-and-answer session. Instructions will breathe given to you at that time. (Operator Instructions) And as a reminder, today's conference convene is being recorded.

    I would now fancy to revolve the conference over to Mr. Jeff Harkins. please lumber ahead.

    Thank you, Cynthia. Before they begin, I would fancy to remind you that inescapable comments, including matters such as forecasted monetary information, contracts or business and trend information, made during this convene may hold forward-looking statements within the sense 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 breathe identified by the utilize 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.

    These statements are matter to a number of factors that could antecedent actual results to differ materially from expectations. Those factors are described in Sally Beauty Holdings' filings with the Securities and Exchange Commission, including its most recent Annual Report on form 10-K. The company does not undertake any duty to publicly update or revise its forward-looking statements. The company has provided a particular explanation and reconciliations of its adjusting items and non-GAAP monetary measures in its earnings press release and on its website.

    With me on the convene today are Chris Brickman, President and Chief Executive Officer; Aaron Alt, Senior Vice President, Chief monetary 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 monetary results, highlights and key changes within their North American business and then proffer some thoughts around maintaining their replete year guidance.

    Now, I'd fancy to revolve the convene over to Chris.

    Christian A. Brickman -- President and Chief Executive Officer

    Thank you, Jeff, and suited morning, everyone. They are making constant progress against their transformation arrangement and remain on track for their key initiatives for the balance of this fiscal year. For the quarter, they delivered positive consolidated same-store sales as both business segments continued to improve. They are furthermore pleased with their results on the bottom line, while acknowledging that they soundless acquire runway in front of us. If you deem 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 suited progress against these efforts, and their first quarter results reflect that, particularly in the North American portions of Sally Beauty Supply. That said, they acquire significant drudgery ahead of us, and their second and third quarters will espy fundamental change in Sally Beauty Holdings. They remain arduous in their faith that their efforts are putting Sally Beauty Holdings on the privilege track for long-term success.

    I'd fancy 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 acquire 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, sense common third-party brands for which they acquire 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 pair 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 elevated trait Ion electrical appliances in the first quarter. Sales acquire been excellent thus far. You may acquire noticed that two weeks ago, suited Morning America ran a segment which highlighted their Ion Titanium Pro Curling Iron on the air, as suited 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 trait 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. furthermore 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 keeping 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 arrangement with respect to their Pravana sales.

    Beauty Systems Group furthermore reinforced two existing lines with innovation, namely Guy Tang's #mydentity hair keeping products and the current reformulated Wella hair color line, Koleston Perfect. Guy Tang is a well-known professional stylist with over 2 million followers on Instagram. His current hair keeping products are an expansion of his current hair color brand and are designed for long, vibrant color tone. The reformulated Wella Koleston flawless line uses ME+ technology, designed to reduce the risk of developing hair color allergies, while delivering sheer 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 distinguished wins in Q1, they are already making progress in this zone in Q2. Beauty Systems Group just completed two miniature acquisitions, acquiring exclusive wholesale distribution rights for Joico in the Boston zone 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 current partnerships, acquisitions or expanding current distribution agreements. And as they mentioned previously, BSG has signed an exclusive distribution agreement with the Swedish vegan hair keeping brand, Maria Nila. This is an essential assortment gain for BSG, as Maria Nila is a rising premium brand that appeals to recent industry trends around natural products. They will fetch this product to shelf before the terminate of Q2. Not to breathe outdone, Sally Beauty Supply is furthermore raising its gain.

    During the first two quarters of fiscal 2019, Sally Beauty will launch 14 current brands in color and care, with a focus on influencer-linked brands. In January, Sally Beauty launched a current vegan cruelty-free hair color line, suited Dye Young, co-created by Hayley Williams, the lead singer of the Grammy Award winning band Paramore. Williams furthermore has more than 2 million followers on Instagram. suited Dye green is now available nationwide on sallybeauty.com and is furthermore in select Sally Beauty stores. They anticipate a replete launch across entire Sally Beauty supply stores by the terminate of the third quarter. At the same time, Sally Beauty continues to espy success with its partnership with the Arctic Fox Vivid color line. In January, Sally Beauty expanded the replete color palette to entire 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 current color kits or boxed color options online and in entire US Sally Beauty Supply stores. This current opportunity for Sally Beauty has proven to breathe incremental to their basket, and they continue to breathe pleased with the results of the launch. They will breathe adding an additional 10 shades to the color assortment during Q2 and more shades in Q4. They will furthermore breathe expanding their sales efforts to their Canadian operations.

    Now, retail fundamentals. Turning to progress on their efforts to better their retail fundamentals. On this call, I'm going to highlight their drudgery against loyalty, store savor and technology, and then Aaron will handle on supply chain later in the call. In late October, Sally Beauty Supply completed the national roll-out of its current loyalty program Sally Beauty Rewards to entire US and Canadian stores. The current program allows customers to enroll for free and accumulate points for a $5 reward certificate for every $50 of spend. Initial results acquire been promising, and I want to provide you with a pair 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 elevated as adoption of their worn program. At the terminate of the quarter, they had 14 million members in the current 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 residence 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 breathe a competitive advantage. As I've mentioned in the past, they are designing and testing both current store concepts and update packages for both business segments in one city, which is Las Vegas. They acquire moved from design and concept to construction. They are rolling out entire of their changes, from assortment, to store layout, to marketing, to technology. Importantly, by targeting one city, they will breathe able to assess synergies between Sally Beauty and CosmoProf. Construction has begun, and they expect entire Sally stores will breathe complete by the terminate of March and the BSG stores will breathe complete soon after.

    Next, technology. They acquire moved from concept to reality as section of implementing a current Oracle point-of-sale system in both business segments. Testing in stores has begun in a number of territories. They will expand their roll-out over the next three quarters and expect to breathe in approximately 1,400 stores by the terminate of this fiscal year. The combination of their CRM implementation, which is already complete; their loyalty program; their current digital commerce website and apps, which are coming soon; and the current POS systems means that for the first time, Sally Beauty and BSG will breathe able to identify their customers regardless of channel, we'll breathe able to serve them on an individualized basis, and we'll breathe able to remove friction from the shopping savor for them. There are many stirring pieces, but this is a really sizable 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 balance of this year as they track a conservative implementation arrangement based on test, test again and deploy.

    Onto their third objective, having a robust digital service platform. As they acquire stated in prior quarters, they acquire 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 espy improvements with over 30% year-over-year growth in both their US and international e-commerce businesses, driven primarily by increased conversion rates. They acquire moved into a sizable quarter for us, the quarter in which they finalize and deploy the current sallybeauty.com and fetch ready to launch the mobile app.

    At the terminate 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 ensue 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 furthermore on track. These current user experiences and platforms are essential transformation proof points for us.

    Next, cost optimization. As their quarter results demonstrate, they acquire aggressively pursued cost savings initiatives while proactively addressing headwinds from labor and much-needed investments. Their cost reduction program will continue to breathe focused on finding additional operating efficiencies and improvements to direct and circuitous 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 acquire more to sequel here and continue to drudgery arduous against their cost takeout plans. Their cost optimization efforts over time will permit us to design necessary investments in the business and provide us with additional flexibility based on the needs of their business and the transformation plan.

    To summarize, the first quarter showed solid progress on their transformation plan, but they recognize that they soundless acquire drudgery to do. With their key accomplishments from the quarter, they are confident that they are stirring in the privilege direction.

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

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

    Thank you, Chris, and suited 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 distinguished job of managing through entire the change that comes with the transformation. I acquire three objectives today: provide a brief summary of today's announcement of their supply chain modernization efforts, to review the consolidated monetary details for the first quarter along with segment results, and finally, to verify that they are maintaining their replete year guidance.

    Before jumping into the numbers, a pair of broad observations. They acquire a plan. We're pleased to breathe able to report some initial success against the first steps of their plan. They acquire a lot of drudgery 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 acquire 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 acquire 15 distribution centers across the United States and Canada. Their network is overly complex, sub-scaled by node, and many of their facilities want automation or efficient processes, which acquire become common in today's economy. They acquire too much inventory in the wrong places, to allow us to optimize their inventory purchases, speed their replenishment of fulfillment and lumber 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 business and how best to support their customers across both the retail and wholesale channels. In an trouble to better their stocks, optimize inventory levels, reduce cost and explore current 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 terminate of the second quarter and closure of their distribution nodes in Lincoln, Nebraska by the terminate of the third quarter. The company is furthermore announcing the search for a 500,000 square foot location within Texas for construction of a current automated and concentrated distribution center, which will service Sally Beauty Supply stores and e-commerce sales as well as Beauty Systems Group stores, replete service sales and e-commerce sales. This current facility will breathe designed to utilize more advanced technology and operate with greater efficiencies and will breathe the first illustration of their consolidated inventory being serviced from under one roof.

    The company will furthermore breathe upgrading its e-commerce capabilities at its distribution facility in Columbus, Ohio. The capital investments for these initiatives is already baked into their appraise 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 breathe further upgrading and integrating their enterprise technology capabilities to allow in-store inventory to breathe accessed by digital clients as section of testing, buy online/pickup in store, buy online/deliver from store and ship from store initiatives. By the terminate of fiscal year 2020, their supply chain will breathe more efficient and will better support entire elements of their business.

    With that, I will revolve to the numbers. First quarter consolidated revenue was $989.5 million, a dwindle of 0.6% versus the prior year, with an enlarge in consolidated same-store sales of 0.3%, offset by an unfavorable repercussion from quaint 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 espy improvement against the supply chain issues that acquire been impacting the Beauty Systems Group segments over the last few quarters.

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

    Our consolidated obscene margin for the quarter was 48.6%, which represents a dwindle of 30 basis points compared to the prior year. Increases in the higher-margin North American business at Sally Beauty Supply were offset by obscene margin challenges in Europe and within Beauty Systems Group. Selling, common and administrative expenses, including depreciation and amortization expense, were $367 million in the quarter, a dwindle 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 acquire excluded restructuring suffuse from both -- charges from both adjusted operating earnings and adjusted diluted earnings per share. Additionally, they acquire 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 repercussion of US tax reform on their consolidated effective tax rate and reduced participate count from past participate repurchases. The company continues to generate tenacious 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 pair of factors, namely the repercussion of current 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 equipoise on their asset-based revolving line of credit remained at zero at the terminate of the quarter. In addition, cash and cash equivalents were $102.8 million at the terminate of the quarter, an enlarge of $23.5 million or 30% over the prior year. As they acquire stated before, they will prioritize needed investments in their business 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 consider revert of capital to shareholders. They are soundless in a leveraged position toward the higher terminate 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 dwindle of 0.8% compared to the prior year. quaint currency translation had an unfavorable repercussion 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 furthermore continue to design meaningful progress with Sally's US and Canadian e-commerce business in the quarter, which helped deliver e-commerce revenue growth of 40.6%. They expect to continue to invest aggressively in improvement for the overall online customer experience. The Story 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 enlarge of 3.9% versus the prior year, primarily driven by lower selling, common and administrative expenses from their transformation efforts, partially offset by the decline in total revenue, related to a lower store count versus the prior year.

    Now, turning to the Beauty Systems Group segment. BSG's revenue in the quarter was $408.8 million, a dwindle of 0.1% versus the prior year, driven by a same store-sales decline of 0.6% and an unfavorable repercussion of quaint currency translation of approximately 40 basis points, mostly offset by a replete quarter of revenue contribution from the acquisition in Canada that closed in December 2017. BSG's obscene margin was 40% in the quarter, down 80 basis points from the prior year, driven primarily by a category of mix 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 obscene margin was driven by the unintended consequences of their merchandising transformation and is addressable as they lumber through the year. The remaining dilution was driven by mix shift and purposeful promotional choices as the business 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 obscene margin, partially offset by lower operating expenses from their transformation efforts.

    Now, let's revolve to their guidance for fiscal year 2019, and it's a very simple story. They are maintaining their replete 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 self-possession in maintaining their guidance for the year.

    Finally, I'm going to near my comments with some accounting housekeeping, specifically the repercussion of two current accounting standards, revenue recognition and leases. In May 2014, FASB issued ASU 2014-09, revenue from contracts with customers, which introduced current 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 nascence of this fiscal year, they adopted ASU 2014-09. The current standard did not acquire a material sequel on their consolidated monetary statements or on their internal controls or monetary reporting, nor sequel they believe that the current standard will acquire a material sequel on their consolidated monetary statements on an ongoing basis.

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

    In summary, they remain confident that they are doing the privilege things to continue to better the business and achieve Sally Beauty Holdings up for long-term success. They understand the challenges, they understand the exigency 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 fancy to revolve the convene back over to Chris.

    Christian A. Brickman -- President and Chief Executive Officer

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

    Questions and Answers:


    Thank you. (Operator Instructions) And their first question will approach 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 fancy Europe was a drag during the quarter. Is it just to impart maybe then US business could breathe 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 crash 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 breathe 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 distinguished quarter, and hopefully, we'll continue to espy those trends.

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

    And then as you examine at the Europe business, how long sequel you deem that drag will last? And as you examine at the environment the past quarter, were there more promotions, clearance activities, is that will wait on your obscene margins?

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

    Well, I deem what they would impart is, far breathe it for us to forecast when Brexit will truly resolve itself or when the civil unrest in France will approach to conclusion, it has had an repercussion on retail and as well as their own results. The suited word 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 tow 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 fancy inventory was one driver. Just nosy 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 monetary Officer

    Yes. I wouldn't read too much into it, to breathe honest. They did -- they did design a pair investments over the course of the quarter, miniature 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 note 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 current two-tiered pricing structure?

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

    We saw improvements in traffic trends without quantifying it. They furthermore 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 current program. What inning are you in, in terms of having the systems and processes in residence to leverage that data within your marketing program? Is that a Story for this fiscal year or something to examine forward to next year and beyond?

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

    We would impart they believe that the loyalty program is already having an repercussion -- a positive repercussion on their guest savor as well as the traffic trends we're seeing. That said, it's only 90 days in, so they acquire more to do. We're going to continue to invest behind it from a guest savor perspective as well as the data science that goes with now having such a near handle point with their customers, and are thinking about how sequel they further deploy across their network as well as rapidly ramp up the execution of their arrangement 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 convene 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 competence to then utilize the data to proffer more relevant offers. Both of those will build from here. So we've certainly not seen the replete repercussion or anywhere near to it at this point.

    Mark Altschwager -- Baird -- Analyst

    Got it. And then just one last one, switching to BSG. The comp decelerated a pair hundred basis points on a two-year basis despite some of the recent brand wins, and it sounds fancy then less of your supply chain pressure. So may breathe if you could just capitalize us better understand some of the puts and takes on the comp there, how to deem about the progression through the balance of the year and just may breathe any color on category plane 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 deem the reality is, it did parade some sequential improvement quarter-to-quarter. section 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 deem we're making suited progress on it. Some of it they believe is some lingering repercussion associated with the fact that they had significant supply chain disruption, and they disrupted some of their guests, and we're probably paying a miniature bit of a cost for that. Over time, they expect that will fade away. And then last is, we've got to bring more innovation to market, which you'll espy us doing in the next pair of quarters. So I deem although they are disappointed with that result, they deem it'll fetch 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 monetary Officer

    I would just commemorate that the comp was a 68 basis points improvement over the prior at same time as well as a quarter-on-quarter improvement. soundless negative, soundless drudgery 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 pair 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. suited morning. Chris, on the traffic question, how would you assess the traffic trends at Sally versus BSG and where you espy opportunity there? And as you sequel identify customers, one of the key opportunities is unlocking traffic. What are your thoughts about the edifice blocks and timing and what will breathe some of the bigger ideas to capitalize with that traffic?

    And Aaron, the supply chain changes are quite innovative and really look fancy a suited path to digitization. Could you talk to us a miniature 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 furthermore on the JDA side, which is another sizable 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 remove 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 acquire been improving. There's lots of components to continuing to design 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 competence to market that database. Some of it will breathe their marketing and media, and we're working on that in terms of how they advertise. Some of it will breathe promotions.

    So as you heard, we've been pushing a fewer, deeper, bigger promotional strategy, where they try and crash through the clutter with fewer promotions, but deeper ones when they lumber that crash through the clutter that the consumer sees. And entire of those play a role and obviously, entire the current products that we're bringing in, that differentiate us and bring current consumers to their stores. So entire 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 current stores. So lots of stirring pieces relative to driving traffic, and we're at early stages, and what they want to sequel is continue to trend.

    At BSG, as they mentioned, section of it has to be, they acquire to rebuild their relationship with some of the customers they aggravated and disappointed during the supply chain issues. We're working on that. I deem 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 section of it is bringing current innovation to the stores, whether that'd breathe current color lines, current hair keeping lines, and furthermore current exclusive innovation, whether that'd breathe with their vendors or through their own brands.

    So both of those -- entire that's playing a role. I know there's a lot there, but I deem overall, we're in a suited 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 lumber the business forward. Aaron, I don't know if you want to add to that or -- and furthermore lumber on to the supply chain piece.

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

    I'll lumber 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 sequel 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 privilege in front of us, that will capitalize us to breathe more efficient with their vendors on where they achieve their inventory, how much inventory they acquire and the cost of servicing their stores as well as their e-commerce business.

    It's furthermore 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 competence to fetch to a residence where their supply chain is flexible, that they will build into over-time. They acquire a road map there, we're sentiment suited about what this will examine 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 acquire for a retailer of their size, and they acquire been cautiously testing with a pair of key vendors on what that looks fancy as they carry forward making suited progress. That will furthermore support and capitalize derisk the changes we're making to the distribution nodes that they announced today.

    And the other piece I would achieve 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 sentiment suited 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 exigency to sequel anything else to fetch 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 fancy JDA, what I'd relate 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 remove the next step perspective, but they deem it's the privilege 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 sequel you deem your product and merchandising will evolve in the context of the supply chain changes as well as fewer, bigger, deeper and furthermore acknowledging how much private label penetration plus expansion opportunities there are? Because what sequel you espy happening with the SKU breadth and what you deem the customer wants in terms of balancing current versus existing as well as product mix and making sure you're relevant to younger customers, would keeping for your thoughts because product is benign of touching a lot of different aspects of how you're engaging in change.

    Christian A. Brickman -- President and Chief Executive Officer

    I deem -- Oliver, I deem the veracity is that their merchandising organization was not as probably mature as most other retailers. And so, we're making a major investment, as Aaron mentioned, in talent in that organization. I don't deem SKU breadth will lumber up because they acquire a lot of dead SKUs that probably exigency to approach out. They were not really very suited at that sun-setting SKUs that had been launched years ago and had lost their effectiveness or efficacy. And so there's a haphazard to prune those while they bring in current merchandise. And you're right, they will breathe very focused on bringing current exclusive brands as well as current own brands into the market, and their goal obviously is to create excitement first in their core categories. So you're going to espy a lot of innovation in color and care, and that'll breathe a mix of exclusive relationships, more BSG and own brands as well as relationships with influencer-linked brands at Sally. And then you'll espy other innovation outside of that where they might bring in more known brands or widely distributed brands in some of the other categories that apt 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 monetary Officer

    I deem I would add to that. Differentiation for us from a strategy perspective is critical, and they understand that, and that will acquire a number of elements. You heard Chris talk at some length around the innovation efforts that acquire 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 section 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 acquire innovation, we're going to breathe very watchful 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 expect with suited fiscal management, particularly as they launch the current concepts in Las Vegas. They are testing and learning on how far can they lumber on that respect to fetch the path which comes from the differentiation, but not overinvest in inventory. So I'm quite excited about what they acquire under artery within Sally. From a merchandising perspective, I deem it's going to -- the investment for us is going to breathe 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 approach 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 benign of dig into the US improvement a bit more and deem about how box color is doing on a sequential basis? Is it benign of driven by better marketing or better products? You benign of mentioned that box color is incremental, but any benign of color on that?

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

    So here's how you should deem about box color. Box color for -- the first understanding 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 acquire 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 arrangement 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 espy marketing popping up around the country, calling out their capability there, particularly on their quality. But for the moment, their emphasis is in-store execution or their own online execution around box color to really add to the basket. fancy I said, we're tracking ahead of plan. They acquire not disclosed what their internal plans are, but so far so good.

    Christian A. Brickman -- President and Chief Executive Officer

    And just one miniature add, as I mentioned on the call, we're adding 10 additional shades for a total of 20, that will lumber in before the terminate of Q2. And it was really essential to us that they got to a replete 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 request a bit more about the cost savings opportunity, how much more is there through the year? And as they deem about benign of other headwinds, you've benign of invested already in wages. Are there any other benign of sizable headwinds remaining on costs?

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

    Look, what I would impart is they acquire not yet achieved replete speed rate of the savings we've already identified. They will fetch there toward the terminate of this year, although some of those will bleed into '20. And so what you should remove from that is that, they continue to acquire opportunity coming their artery that we're actively tracking and pursuing within the business and as evidence of that, I would point to some of the progress against SG&A that the business made, even in Q1, that we're quite pleased with. And I forgot the second section of your question.

    Xian Siew -- Morgan Stanley -- Analyst

    Yes. Well, first it was just benign of the buckets of the cost savings. And then on the other side, are there any other benign of headwinds for illustration fancy people acquire been investing in wages?

    Aaron E. Alt -- Senior Vice President and Chief monetary 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 breathe the exigency 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 acquire -- there hasn't been a deviation. So I wouldn't convene those a headwind. I would convene them, they're section of their arrangement consistent with their guidance.

    Labor, they continue to monitor literally every month with their stores teams, but they are addressing that as they exigency to furthermore drive into further efficiencies on how they arrangement the labor they deploy across their network, and we're making distinguished -- the stores teams are making distinguished progress there as well. And so entire I can impart is they feel fancy we've got their arms wrapped around it. There's nothing different so far than what they were expecting, and we're comfortable 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 approach 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 benign of revisit cash flow because I know you said you don't read too much into it and you're confident on reaching your replete year target, but obviously, the magnitude of the decline relative to last year is pretty meaningful. So can you capitalize us build the self-possession that you acquire with the slower start on free cash flow generation, how you fetch there through the balance of the year?

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

    Sure, cheerful to. Yes. There -- in addition to the investment in inventory, I deem I called out during their guidance at the terminate of Q4 that they were furthermore taking steps with respect to their IP, and I suspect the dissimilarity 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 privilege now and that will -- obviously, that will acquire 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 army -- there's a army out there from a maybe to achieve a miniature more color around the AP Story as they optimize the P&L, right, while they acquire the opportunity to obtain further discounts and better 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 distinguished 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 expect overall that cost will continue to enlarge as you fund those initiatives?

    Christian A. Brickman -- President and Chief Executive Officer

    I deem it's going to breathe -- it's entire in their plan, and I don't deem -- 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 breathe investments as they launch them. So it's entire laid out in the plan, it's entire in their guidance for the year. We're tracking them rigorously. They acquire a team that basically tracks every lone week how the progress we're making and manages any deviations accordingly. So I don't deem it should drive us in any artery off of the -- their current trajectory.

    Olivia Tong -- Bank of America -- Analyst

    Got it. Thanks so much. esteem 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, suited morning. So first question, just a housekeeping item, you mentioned earlier that you did espy a miniature bit of a capitalize on the accounting side in the transition to the current 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 retort I gave earlier is the retort 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 miniature 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 entire of those is a slight tailwind.

    Joe Altobello -- Raymond James -- Analyst

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

    Christian A. Brickman -- President and Chief Executive Officer


    Aaron E. Alt -- Senior Vice President and Chief monetary 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 acquire 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 foundation that I deem is pretty well set in a artery sometimes. How acquire they taken to that current strategy? It sounds fancy pretty well at least given the indication they saw this morning, but any issues with that in terms of the customer foundation being a miniature achieve off by the current promotional strategy?

    Christian A. Brickman -- President and Chief Executive Officer

    No, I deem we're going to breathe expanding that to BSG as well in coming quarters. But the reality is, Joe, deem about it fancy this. As they mentioned in the call, there is a significant portion of their business 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 lumber deeper in categories that are highly competitive in order to win traffic from competition, and the last section of that is bigger, which has been integrating those fewer promotions across entire of their media and marketing platforms. That strategy is working very well with their customers, they deem 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. suited to hear. Thank you, guys.


    Thank you. Their next question will approach 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 distinguished quarter. Given the ongoing Europe volatility that you're seeing combined with a bit of BSG weakness, what signs are you seeing that provide self-possession that margin headwinds are going to dissipate throughout the year to fetch to your guidance? Can you soundless gain 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 monetary Officer

    We're cheerful to sequel so. I deem 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 achieve within that bucket are things that are well within their control, for which they took their eye off the ball. Things that -- things fancy striking the deal with a vendor before they speed the promotion, things fancy making sure we're paying consistent with their discount terms, things fancy ensuring that the buying is happening in the privilege time period.

    The focus on the BSG margin is relentless, internally at this minute because they fetch 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 exigency to fetch to, and that the focus is in the privilege residence to ensure that as they carry through the year, BSG is able to ensue the track that the Sally Beauty segment is on relative to continued margin improvement.

    And so I would relate you that it will always breathe the case that they will track what their customer needs and that they will speed promotions from time to time. As Chris has alluded to, they will breathe optimizing that within the BSG business 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 exigency to sequel 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 lumber 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 arrangement for a current DC in Texas, is that something you'll expect that you would breathe edifice or you're going to breathe purchasing an existing one, will you lease it? acquire you -- sequel you acquire 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 examine at entire options. So the retort is, well, they will investigate entire of those options. The key is that they will breathe 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. sequel you acquire any sense for context about something fancy that, what it would cost, as I just deem about CapEx over the next pair of years?

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

    I sequel acquire suited 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 acquire built into the current $120 million of capital appraise for the year, approximately $18 million of that will breathe tied to this improvement, and there will breathe a much smaller amount in '20 as it carries forward. The facility will not breathe operational until '20 obviously, but we're starting the drudgery now.

    William Reuter -- Bank of America -- Analyst

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

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

    I would impart 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, linger tuned on that. And only after they acquire the -- those two things accomplished to their console plane will they repurchase shares. They acquire -- I deem I acquire said categorically previously that they acquire no plans to repurchase shares during '19, that continues to breathe 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 lumber 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 cost adjustments to breathe more competitive. But then last quarter, you actually talked about some cost increases that helped obscene margin. So -- has the capitalize of those cost increases continued to carry forward, and can you just update us benign of where you are in looking at sort of some of the pricing strategies? Thanks.

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

    Sure. So I'd approach it in a pair of ways. Obviously, they went from a three-tier to a two-tier model as section of the loyalty change, emphasizing a lower cost for their pros versus harmonizing their retail price. From a capability perspective, they continue to examine at their pricing by category, where sequel they acquire differentiation that supports higher cost versus where are they operating in categories that are much more competitive such that they exigency to breathe lower. I would impart we're section 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 soundless acquire drudgery to sequel in some key categories where they believe they should breathe 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 breathe 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 fancy to revolve 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 business 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 business at the same 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 sustain us on the path to long-term earnings growth. Thank you for joining us today.


    Thank you. And ladies and gentlemen, today's conference convene will breathe 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 convene 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 monetary 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

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    Transcript powered by AlphaStreet

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  • Ensure that social media metrics lead/play a large role in your content performance evaluations.
  • Utilize combinations of search, social, analytics and internal (CRM/CMS) tools to design a start on tracking your content performance from creation to revenue.
  • Content, search and social – there is always a metric to measure so utilize various tools and platforms and build your own measurement system.
  • Media Value Measure

    Essential Further Reading:


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

  • A community culture of content across entire its organization – creators, collaborators and authors – no content silos. It isn’t just the role of marketing to produce content.
  • A streamlined set of processes for the management of talent and production and distribution of content across multiple business functions.
  • A systematic artery of measuring content value at each stage of it’s consumption, amplification, rendezvous and journey through the user journey and your internal business journey/targets.
  • Smart businesses build tenacious content cultures.

    Strong cultures and transparent processes design scaling trait content an achievable and enjoyable process for everyone involved. Without a culture of content businesses produce hectic, reactive, hub-and-spoke content that often falls short of the note in terms of aims and objectives.

    If you master the four steps above, then your content will scale organically and efficiently – the content halo.

    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.

    Want to linger on top of the latest search trends? Get top insights and word from their search experts.

    Related reading

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    Link reclamation is a simple but efficient tactic to revolve unlinked brand mentions into links. Here's when to gain out, who to contact, and what to say.

    Five things you can sequel for free to boost organic search results. Tip #4: How just one word in a title can antecedent a 59% enlarge in organic traffic.

    For 3 out of 5 marketers, generating traffic and leads is the toughest challenge. Here are their top three tips for lead generation for ecommerce businesses.

    Want to linger on top of the latest search trends? Get top insights and word from their search experts.

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