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

Sally Beauty (NYSE:SBH) issued its earnings results on Tuesday. The specialty retailer reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.02, FiscalAI reports. The firm had revenue of $952.53 million for the quarter, compared to analyst estimates of $950.12 million. Sally Beauty had a return on equity of 24.36% and a net margin of 5.16%. The firm’s revenue for the quarter was up .6% on a year-over-year basis. During the same period last year, the company 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 Price Performance

Shares of SBH stock traded up $0.56 during trading hours on Tuesday, hitting $20.05. The company had a trading volume of 751,935 shares, compared to its average volume of 1,497,826. The firm 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 quick ratio of 0.57 and a current ratio of 2.37. The firm’s fifty day moving average is $16.79 and its 200 day moving average is $15.16. Sally Beauty has a 12 month low of $11.54 and a 12 month high of $20.46.

Sally Beauty News Roundup

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

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

About Sally Beauty

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.