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

Sally Beauty (NYSE:SBH) released its quarterly earnings data on Monday. The specialty retailer reported $0.55 EPS for the quarter, beating the consensus estimate of $0.53 by $0.02, FiscalAI reports. Sally Beauty had a return on equity of 24.95% and a net margin of 4.93%.The company had revenue of $935.49 million for the quarter, compared to analysts’ expectations of $938.45 million. During the same period last year, the firm posted $0.51 earnings per share. Sally Beauty’s revenue was up .3% compared to the same quarter last year. Sally Beauty updated its FY 2026 guidance to 2.040-2.080 EPS.

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

• Q3 results met guidance, with sales of $935 million, flat comparable sales, adjusted operating income of $87 million, and adjusted EPS of $0.55, up 8% year over year. Gross margin expanded 40 basis points to 52.4%, supported by Fuel for Growth savings.
• The Sally segment was a key growth driver, delivering 1.6% comparable-sales growth, including 3.5% growth in the U.S. and Canada. Color sales rose 8% globally, while Sally e-commerce increased 20% and global e-commerce grew 11% for the fourth consecutive quarter of double-digit growth.
• BSG comparable sales declined 2.1%, as a 5% decrease in care sales more than offset strength in color and nails. Management cited cautious stylist spending, increased promotional activity, and difficult comparisons with last year’s K18 launch, while new assortment and value initiatives are intended to improve trends.
• Management remains encouraged by Sally Ignited remodels, with 80 locations expected by fiscal year-end and higher traffic, dwell time, units per transaction, and average ticket than the broader fleet. The company also plans to open 10 additional Happy Beauty mall locations and launch its e-commerce site late in Q4.
• The company narrowed fiscal 2026 guidance to sales of $3.725 billion-$3.733 billion, adjusted operating earnings of $329 million-$335 million, and adjusted EPS of $2.04-$2.08. Strong cash generation enabled $20 million of debt repayment and $25 million of share repurchases, with management maintaining its plan to return 50% of free cash flow through buybacks.

Sally Beauty Stock Performance

NYSE:SBH opened at $16.14 on Tuesday. The stock has a 50-day simple moving average of $14.02 and a two-hundred day simple moving average of $14.40. The firm has a market capitalization of $1.54 billion, a PE ratio of 8.92 and a beta of 1.03. The company has a debt-to-equity ratio of 0.98, a quick ratio of 0.55 and a current ratio of 2.34. Sally Beauty has a 52-week low of $9.69 and a 52-week high of $17.92.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on SBH shares. Wall Street Zen upgraded shares of Sally Beauty from a “hold” rating to a “buy” rating in a research note on Saturday, June 13th. TD Cowen decreased their price objective on shares of Sally Beauty from $20.00 to $17.00 and set a “buy” rating for the company in a report on Tuesday, May 12th. Morgan Stanley lowered their price objective on shares of Sally Beauty from $16.00 to $13.00 and set an “underweight” rating on the stock in a research report on Tuesday, May 12th. Finally, Weiss Ratings upgraded shares of Sally Beauty from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, July 28th. Three investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Sally Beauty has an average rating of “Hold” and an average target price of $17.00.

Insiders Place Their Bets

In other news, CFO Marlo Michelle Cormier Platz sold 42,771 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $12.70, for a total value of $543,191.70. Following the completion of the transaction, the chief financial officer owned 138,145 shares of the company’s stock, valued at $1,754,441.50. This represents a 23.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Sally Beauty

Large investors have recently bought and sold shares of the business. Susquehanna Portfolio Strategies LLC bought a new position in Sally Beauty during the fourth quarter valued at $143,000. Cinctive Capital Management LP bought a new stake in shares of Sally Beauty in the 4th quarter worth about $164,000. Mariner LLC increased its holdings in shares of Sally Beauty by 6.1% in the 4th quarter. Mariner LLC now owns 15,400 shares of the specialty retailer’s stock worth $220,000 after buying an additional 890 shares during the last quarter. DRW Securities LLC purchased a new stake in shares of Sally Beauty during the 4th quarter valued at about $175,000. Finally, CIBC Bancorp USA Inc. purchased a new stake in shares of Sally Beauty during the 3rd quarter valued at about $176,000.

Sally Beauty News Roundup

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

• Positive Sentiment: Adjusted earnings exceeded expectations. Sally Beauty reported quarterly EPS of $0.55, up from $0.51 a year earlier and above the $0.53 analyst consensus. Sally Beauty Tops Q3 Earnings Estimates
• Positive Sentiment: Profitability and operating execution improved. Management pointed to progress on its long-term strategy, while coverage highlighted margin improvement, strong cash flow and share buybacks as factors supporting investor sentiment. Sally Beauty Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: Full-year guidance remains in line with expectations. Fiscal 2026 EPS guidance of $2.04-$2.08 brackets the $2.06 consensus estimate, while the company maintained revenue guidance of approximately $3.7 billion. Q3 2026 Earnings Call Transcript
• Neutral Sentiment: Sales were broadly stable. Revenue increased 0.3% year over year to $935.49 million, but the result was slightly below the $938.45 million consensus estimate. Sally Beauty Q3 Key Metrics
• Negative Sentiment: Weakness in the Beauty Systems Group and the revenue miss temper the bullish case. Investors may remain cautious about the company’s limited top-line growth and the need for continued improvement in underperforming operations. Sally Beauty Analysis

About Sally Beauty

Sally Beauty Holdings, Inc is a leading global specialty retailer and distributor of professional beauty supplies, serving both retail customers and salon professionals. The company operates two primary channels: Sally Beauty Supply, which offers a broad assortment of hair color, hair care, styling, and skincare products; and Beauty Systems Group (BSG), which provides salon-quality products and supplies to professional stylists and salon owners. With a focus on catering to diverse customer needs, Sally Beauty offers well-known brands alongside private label lines, positioning itself as a one-stop source for beauty professionals and enthusiasts alike.

Founded in 1964 and headquartered in Denton, Texas, Sally Beauty has grown through a combination of organic expansion and strategic acquisitions.