Sally Beauty (NYSE:SBH) Announces Quarterly Earnings Results

Sally Beauty (NYSE:SBH) released its quarterly earnings results on Monday. The specialty retailer reported $0.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.47 by $0.01, FiscalAI reports. Sally Beauty had a return on equity of 26.07% and a net margin of 4.87%.The business had revenue of $943.17 million during the quarter, compared to the consensus estimate of $939.63 million. During the same period in the previous year, the company posted $0.43 EPS. The business’s quarterly revenue was up .6% compared to the same quarter last year. Sally Beauty updated its FY 2026 guidance to 2.020-2.100 EPS and its Q2 2026 guidance to 0.390-0.420 EPS.

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

• Q1 outperformed — consolidated net sales of $943M, adjusted diluted EPS of $0.48 (up 12%), adjusted operating income at the high end of expectations, and strong operating cash flow of $93M with $20M debt paydown and $21M of buybacks.
• The Fuel for Growth program is materially improving margins — $14M of pre-tax benefits captured in Q1, with ~$45M expected in FY26 and a target cumulative run-rate saving of $120M by year-end.
• Portfolio and growth moves include exiting lower‑margin full‑service Europe (≈$10M FY26 sales headwind but not material to operating profit), a fragrance rollout expanding toward 2,000 Sally stores, and the Sally Ignited store refreshes showing positive KPIs.
• Digital and category momentum — Sally e‑commerce grew 20% (global e‑commerce +11% to $111M), Sally color +8%, BSG color +4%, and app/marketplace upgrades underway to drive further conversion.
• Near‑term macro and behavioral headwinds — government shutdowns and a more “choiceful”/value‑focused consumer pressured some discretionary and care categories, prompting cautious Q2 guidance (comps +0.5%–1.5%) despite the raised low end of full‑year EPS guidance.

Sally Beauty Price Performance

Shares of Sally Beauty stock opened at $15.57 on Wednesday. The company has a market capitalization of $1.52 billion, a price-to-earnings ratio of 8.85 and a beta of 1.16. The company has a quick ratio of 0.54, a current ratio of 2.37 and a debt-to-equity ratio of 1.02. The stock’s 50-day simple moving average is $15.44 and its 200-day simple moving average is $14.71. Sally Beauty has a 52 week low of $7.54 and a 52 week high of $17.92.

Insider Activity at Sally Beauty

In other news, SVP Scott C. Sherman sold 15,000 shares of Sally Beauty stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $16.27, for a total transaction of $244,050.00. Following the sale, the senior vice president owned 57,585 shares in the company, valued at $936,907.95. This trade represents a 20.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Kim Mcintosh sold 5,900 shares of the business’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $15.71, for a total transaction of $92,689.00. Following the completion of the transaction, the chief accounting officer directly owned 21,295 shares in the company, valued at $334,544.45. This trade represents a 21.70% decrease in their position. The SEC filing for this sale provides additional information. 2.00% of the stock is currently owned by company insiders.

Institutional Trading of Sally Beauty

A number of institutional investors and hedge funds have recently bought and sold shares of SBH. Wasatch Advisors LP bought a new position in shares of Sally Beauty during the 3rd quarter valued at about $74,842,000. Goldman Sachs Group Inc. lifted its position in shares of Sally Beauty by 46.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 3,981,998 shares of the specialty retailer’s stock worth $56,783,000 after buying an additional 1,254,125 shares in the last quarter. Millennium Management LLC lifted its position in shares of Sally Beauty by 126.7% in the third quarter. Millennium Management LLC now owns 1,058,358 shares of the specialty retailer’s stock worth $17,230,000 after buying an additional 591,426 shares in the last quarter. Raymond James Financial Inc. boosted its stake in Sally Beauty by 12,241.2% during the third quarter. Raymond James Financial Inc. now owns 449,468 shares of the specialty retailer’s stock valued at $7,317,000 after buying an additional 445,826 shares during the last quarter. Finally, Invesco Ltd. grew its holdings in Sally Beauty by 21.7% during the 2nd quarter. Invesco Ltd. now owns 1,788,951 shares of the specialty retailer’s stock valued at $16,566,000 after buying an additional 319,025 shares in the last quarter.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Raymond James Financial upgraded shares of Sally Beauty from a “market perform” rating to an “outperform” rating and set a $19.00 target price for the company in a research report on Wednesday, January 21st. Canaccord Genuity Group boosted their price objective on shares of Sally Beauty from $19.00 to $20.00 and gave the company a “buy” rating in a research report on Tuesday. Jefferies Financial Group restated a “hold” rating and issued a $16.00 price objective on shares of Sally Beauty in a research note on Wednesday, January 14th. TD Cowen lifted their target price on Sally Beauty from $17.00 to $18.00 and gave the company a “buy” rating in a research report on Wednesday, January 21st. Finally, Morgan Stanley raised their price objective on Sally Beauty from $14.00 to $16.00 and gave the stock an “underweight” rating in a research note on Tuesday. Three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $16.58.

More Sally Beauty News

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

• Positive Sentiment: Q1 results beat expectations and management lifted the low end of FY‑2026 EPS guidance, supporting the earnings story and free cash flow prospects. Sally Beauty Lifts EPS Outlook After Solid Q1 Results
• Positive Sentiment: Margins are expanding and management is pushing category expansion and digital initiatives that helped keep sales roughly flat while improving profitability — positive for longer‑term margin trajectory. Sally Beauty (NYSE:SBH) Margins Expand, Tracks NYSE Composite
• Neutral Sentiment: Analyst writeups and deep dives highlight new category expansion and digital work that anchor flat sales — suggests steady execution but not a clear accelerator for near‑term revenue growth. SBH Q4 Deep Dive: New Category Expansion and Digital Initiatives Anchor Flat Sales
• Neutral Sentiment: Company released an earnings‑call summary that balances operational progress with caution — management is constructive but cautious on near‑term trends. Sally Beauty Earnings Call Balances Progress With Caution
• Neutral Sentiment: Company disclosed a new Regulation‑category risk but said its overall risk profile remains anchored to the 2025 Form 10‑K with no material changes — worth monitoring but not an immediate financial impact. Sally Beauty Holdings: Risk Profile Still Anchored to 2025 Form 10‑K With No New Material Changes
• Negative Sentiment: Q2 guidance (EPS 0.390–0.420) is below street expectations (consensus ~0.45), and revenue guidance is essentially in line but not upside — the conservative near‑term outlook likely pressured the stock. Sally Beauty Raises Low End of FY26 EPS View on Q1 Earnings Beat

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.