Sally Beauty (NYSE:SBH) Issues Quarterly Earnings Results

Sally Beauty (NYSE:SBH) released its quarterly earnings data on Tuesday. The specialty retailer reported $0.62 earnings per share for the quarter, topping analysts’ consensus estimates of $0.60 by $0.02, FiscalAI reports. Sally Beauty had a net margin of 5.16% and a return on equity of 24.36%. The firm had revenue of $952.53 million for the quarter, compared to analyst estimates of $950.12 million. During the same quarter in the prior year, the business earned $0.55 earnings per share. The business’s quarterly revenue was up .6% compared to the same quarter last year. Sally Beauty updated its Q1 2027 guidance to 0.480-0.520 EPS and its FY 2027 guidance to 2.200-2.300 EPS.

Here are the key takeaways from Sally Beauty’s conference call:

• Fiscal 2026 net sales were $3.73 billion, adjusted diluted EPS rose 9.5% to $2.08, and cash flow from operations reached $323 million. In Q4, comparable sales increased 1% and adjusted EPS grew 13% to $0.62.
• For fiscal 2027, management expects comparable sales growth of 1%–2% and adjusted EPS of $2.20–$2.30; it plans to use 50% of free cash flow for share repurchases. The outlook assumes a resilient consumer while acknowledging inflation in labor, rent, and transportation.
• Sally Beauty posted its fifth consecutive quarter of positive comps, with Q4 comparable sales up 2%, color sales up 7%, and segment e-commerce up 13%. Care sales fell 7%, which management attributed to the planned ion relaunch and short-term supply challenges; it expects improvement in fiscal 2027.
• BSG comparable sales declined 0.6% in Q4, although the trend improved from Q3 and management expects the segment to return to growth in fiscal 2027. Add-on services remained inconsistent, with management citing consumer price sensitivity.
• Management plans to add about 100 Sally Ignited locations in fiscal 2027, taking the year-end count to roughly 180; test locations are delivering comps of 8%–10%. The company also completed its Fuel for Growth program, which generated $120 million in cumulative run-rate savings.

Sally Beauty Price Performance

SBH traded up $0.56 during trading on Tuesday, reaching $20.05. 751,935 shares of the stock were exchanged, compared to its average volume of 1,497,826. Sally Beauty has a 1 year low of $11.54 and a 1 year high of $20.46. The company has a market capitalization of $1.88 billion, a price-to-earnings ratio of 10.45 and a beta of 1.09. The company has a debt-to-equity ratio of 0.92, a current ratio of 2.37 and a quick ratio of 0.57. The business’s 50 day moving average price is $16.79 and its two-hundred day moving average price is $15.16.

Trending Headlines about Sally Beauty

Here are the key news stories impacting Sally Beauty this week:

• Positive Sentiment: Fiscal Q4 EPS was $0.62 versus the $0.60 consensus and $0.55 a year earlier. Revenue of $952.5 million also topped estimates of about $950.1 million. Sally Beauty Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: The company characterized its results as delivering sales and operating-earnings growth, with double-digit EPS growth in Q4, and reported positive sales momentum heading into the holiday period. Sally Beauty Reports Fourth Quarter and Full Year 2026 Results
• Neutral Sentiment: For FY2027, Sally Beauty projected EPS of $2.20–$2.30, a range that brackets the $2.24 analyst consensus; revenue guidance of $3.8 billion matches expectations.
• Negative Sentiment: Q1 FY2027 EPS guidance of $0.48–$0.52 has a midpoint of $0.50, below the $0.52 consensus. Revenue guidance of $945–$955 million is broadly in line with estimates. Sally Beauty Holdings Sees Slight Growth in FY27

Analysts Set New Price Targets

A number of equities analysts recently weighed in on SBH shares. Wall Street Zen cut Sally Beauty from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Weiss Ratings cut shares of Sally Beauty from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 30th. Finally, TD Cowen assumed coverage on shares of Sally Beauty in a research note on Friday, October 30th. They issued a “strong-buy” rating on the stock. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Sally Beauty has an average rating of “Moderate Buy” and an average target price of $17.40.

Sally Beauty Company Profile

Sally Beauty Holdings, Inc. is a specialty retailer and distributor of professional beauty products. It serves both individual consumers and salon professionals through retail stores, online channels and professional distribution. The company operates Sally Beauty, which sells products such as hair color and care items, styling tools, nail products and skincare. Its CosmoProf business supplies salons and other beauty professionals with products, equipment and related educational resources. Sally Beauty traces its roots to a beauty supply store opened in New Orleans in 1964.