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

Sally Beauty (NYSE:SBH) released its quarterly earnings results on Monday. The specialty retailer reported $0.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.53 by $0.02, FiscalAI reports. The business had revenue of $935.49 million during the quarter, compared to the consensus estimate of $938.45 million. Sally Beauty had a return on equity of 24.36% and a net margin of 5.16%.The company’s quarterly revenue was up .3% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.51 EPS. 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 Up 1.0%

NYSE:SBH traded up $0.17 on Wednesday, hitting $16.73. The stock had a trading volume of 231,143 shares, compared to its average volume of 1,572,698. Sally Beauty has a 1 year low of $11.54 and a 1 year high of $17.92. The firm’s fifty day simple moving average is $14.10 and its two-hundred day simple moving average is $14.40. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.55 and a current ratio of 2.37. The stock has a market cap of $1.60 billion, a P/E ratio of 9.24 and a beta of 1.03.

Insider Buying and Selling at Sally Beauty

In other news, CFO Marlo Michelle Cormier Platz sold 42,771 shares of the company’s stock in a transaction that occurred on 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 directly 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. 2.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Royal Bank of Canada increased its position in shares of Sally Beauty by 150,390.9% during the 1st quarter. Royal Bank of Canada now owns 33,108 shares of the specialty retailer’s stock valued at $299,000 after purchasing an additional 33,086 shares during the last quarter. AQR Capital Management LLC boosted its holdings in shares of Sally Beauty by 53.7% in the 1st quarter. AQR Capital Management LLC now owns 476,966 shares of the specialty retailer’s stock worth $4,188,000 after buying an additional 166,637 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Sally Beauty by 3.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 60,595 shares of the specialty retailer’s stock valued at $547,000 after buying an additional 2,026 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Sally Beauty by 10.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 324,906 shares of the specialty retailer’s stock valued at $2,934,000 after buying an additional 31,040 shares during the period. Finally, Hsbc Holdings PLC increased its holdings in Sally Beauty by 11.5% during the second quarter. Hsbc Holdings PLC now owns 57,640 shares of the specialty retailer’s stock worth $530,000 after buying an additional 5,956 shares during the last quarter.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on SBH shares. Wall Street Zen upgraded Sally Beauty from a “hold” rating to a “buy” rating in a report on Saturday, June 13th. TD Cowen upped their price target on Sally Beauty from $17.00 to $19.00 and gave the stock a “buy” rating in a report on Tuesday. Weiss Ratings raised Sally Beauty from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, July 28th. Finally, Morgan Stanley dropped their price objective on Sally Beauty from $16.00 to $13.00 and set an “underweight” rating on the stock in a research note on Tuesday, May 12th. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $17.40.

Sally Beauty Company Profile

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.