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

Sally Beauty (NYSE:SBH) released its quarterly earnings results on Tuesday. The specialty retailer reported $0.62 EPS for the quarter, topping the consensus estimate of $0.60 by $0.02, FiscalAI reports. Sally Beauty had a return on equity of 24.07% and a net margin of 5.36%. The business had revenue of $952.53 million for the quarter, compared to analysts’ expectations of $950.12 million. During the same quarter in the previous year, the firm posted $0.55 earnings per share. The company’s 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 Stock Down 1.9%

Shares of Sally Beauty stock opened at $18.85 on Thursday. The business’s fifty day moving average price is $16.93 and its two-hundred day moving average price is $15.20. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.37 and a quick ratio of 0.57. The company has a market capitalization of $1.76 billion, a P/E ratio of 9.29 and a beta of 1.09. Sally Beauty has a 1-year low of $11.54 and a 1-year high of $21.06.

Wall Street Analyst Weigh In

A number of research firms have commented on SBH. Wall Street Zen downgraded shares of Sally Beauty from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Morgan Stanley boosted their target price on shares of Sally Beauty from $13.00 to $19.00 and gave the stock an “underweight” rating in a research report on Wednesday. TD Cowen started coverage on shares of Sally Beauty in a research note on Friday, October 30th. They issued a “strong-buy” rating on the stock. Canaccord Genuity Group upped their target price on shares of Sally Beauty from $20.00 to $25.00 and gave the company a “buy” rating in a research note on Wednesday. Finally, Raymond James Financial set a $18.00 price target on shares of Sally Beauty and gave the stock an “outperform” rating in a research report on Tuesday. 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 assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $20.40.

More Sally Beauty News

Here’s some of the latest news about SBH:

• Positive Sentiment: Management raised its fiscal 2027 outlook above consensus; the company’s stated EPS range is $2.20–$2.30. The earnings-call highlights also pointed to strong cash flow and margin performance. Article: Sally Beauty Reports Q4 Earnings Above Estimates and Raises FY2027 Outlook Above Consensus
• Positive Sentiment: Longer-term growth signals included 10% full-year e-commerce sales growth and expansion of the Sally Ignited store concept to 80 locations. Article: Sally Beauty: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: Morgan Stanley raised its price target to $19 from $13 but maintained an Underweight rating, indicating continued caution despite the higher target. Article: Morgan Stanley Adjusts Price Target on Sally Beauty to $19 From $13, Keeps Underweight Rating

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.