Sally Beauty (NYSE:SBH) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Sally Beauty (NYSE:SBH) issued its quarterly earnings data on Tuesday. The specialty retailer reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.02, FiscalAI reports. The business had revenue of $952.53 million for the quarter, compared to the consensus estimate of $950.12 million. Sally Beauty had a return on equity of 24.36% and a net margin of 5.16%. The business’s revenue was up .6% on a year-over-year basis. During the same period in the prior year, the business earned $0.55 earnings per share. 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 Stock Down 6.5%

NYSE SBH traded down $1.33 on Wednesday, hitting $19.21. 548,220 shares of the stock traded hands, compared to its average volume of 1,502,879. The company has a current ratio of 2.37, a quick ratio of 0.57 and a debt-to-equity ratio of 0.92. The company has a market capitalization of $1.80 billion, a P/E ratio of 9.99 and a beta of 1.09. Sally Beauty has a twelve month low of $11.54 and a twelve month high of $21.06. The stock has a 50-day moving average of $16.88 and a 200 day moving average of $15.18.

Sally Beauty News Roundup

Here’s some of the latest news about SBH:

• Positive Sentiment: Fiscal Q4 adjusted earnings were $0.62 per share, above the $0.60 consensus and up from $0.55 a year earlier. Revenue rose 0.6% to $952.5 million, also slightly topping estimates. Sally Beauty Reports Q4 Earnings Above Estimates and Raises FY2027 Outlook Above Consensus
• Positive Sentiment: Management’s FY2027 EPS outlook of $2.20–$2.30 per share has a $2.25 midpoint, slightly above the $2.24 analyst consensus. The company also reported 10% full-year e-commerce sales growth and expansion of its Sally Ignited format to 80 stores. Sally Beauty: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Fiscal Q1 2027 EPS guidance of $0.48–$0.52 has a midpoint below the $0.52 consensus, while revenue guidance of $945 million–$955 million brackets the $948.3 million estimate. Sally Beauty Holdings Sees Slight Growth In FY27

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. TD Cowen assumed coverage on Sally Beauty in a report on Friday, October 30th. They set a “strong-buy” rating on the stock. Raymond James Financial set a $18.00 price target on Sally Beauty and gave the stock an “outperform” rating in a research report on Tuesday. Wall Street Zen lowered shares of Sally Beauty from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Weiss Ratings downgraded shares of Sally Beauty from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 30th. Finally, Jefferies Financial Group set a $21.00 price objective on shares of Sally Beauty and gave the stock a “hold” rating in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Sally Beauty currently has an average rating of “Moderate Buy” and a consensus target price of $18.20.

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.