Sally Beauty (NYSE:SBH) Announces Earnings Results

Sally Beauty (NYSE:SBH) posted its quarterly earnings data on Monday. The specialty retailer reported $0.48 EPS for the quarter, beating analysts’ consensus estimates of $0.47 by $0.01, FiscalAI reports. The company had revenue of $943.17 million during the quarter, compared to analyst estimates of $939.63 million. Sally Beauty had a net margin of 5.29% and a return on equity of 27.07%. The business’s quarterly revenue was up .6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.43 earnings per share. 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 Trading Up 5.5%

NYSE:SBH opened at $17.05 on Tuesday. The company has a market capitalization of $1.66 billion, a P/E ratio of 9.02 and a beta of 1.16. The stock’s 50 day moving average price is $15.44 and its 200 day moving average price is $14.67. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.54 and a current ratio of 2.26. 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 the stock in a transaction 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 transaction, the senior vice president owned 57,585 shares in the company, valued at $936,907.95. This represents a 20.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Kim Mcintosh sold 5,900 shares of Sally Beauty stock in a transaction on Thursday, December 11th. The shares were sold at an average price of $15.71, for a total transaction of $92,689.00. Following the completion of the sale, the chief accounting officer directly owned 21,295 shares of the company’s stock, valued at approximately $334,544.45. The trade was a 21.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 2.00% of the company’s stock.

Institutional Trading of Sally Beauty

Large investors have recently made changes to their positions in the stock. Osaic Holdings Inc. raised its stake in shares of Sally Beauty by 1,365.0% in the 2nd quarter. Osaic Holdings Inc. now owns 2,930 shares of the specialty retailer’s stock valued at $27,000 after acquiring an additional 2,730 shares in the last quarter. Larson Financial Group LLC grew its holdings in Sally Beauty by 392.5% during the third quarter. Larson Financial Group LLC now owns 1,906 shares of the specialty retailer’s stock valued at $31,000 after purchasing an additional 1,519 shares during the last quarter. Raymond James Financial Inc. bought a new position in shares of Sally Beauty in the second quarter valued at approximately $34,000. iSAM Funds UK Ltd bought a new position in shares of Sally Beauty in the third quarter valued at approximately $35,000. Finally, Tower Research Capital LLC TRC lifted its stake in shares of Sally Beauty by 48.3% in the second quarter. Tower Research Capital LLC TRC now owns 13,570 shares of the specialty retailer’s stock worth $126,000 after buying an additional 4,418 shares during the last quarter.

Analyst Upgrades and Downgrades

SBH has been the subject of a number of recent analyst reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Sally Beauty in a research note on Friday, January 9th. Morgan Stanley restated an “underweight” rating and issued a $14.00 target price on shares of Sally Beauty in a report on Thursday, January 15th. TD Cowen lifted their price target on Sally Beauty from $17.00 to $18.00 and gave the company a “buy” rating in a report on Wednesday, January 21st. Raymond James Financial raised Sally Beauty from a “market perform” rating to an “outperform” rating and set a $19.00 price target on the stock in a research report on Wednesday, January 21st. Finally, Jefferies Financial Group reissued a “hold” rating and issued a $16.00 price objective on shares of Sally Beauty in a research note on Wednesday, January 14th. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Sally Beauty currently has a consensus rating of “Hold” and a consensus target price of $16.08.

Trending Headlines about Sally Beauty

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

• Positive Sentiment: Q1 results beat expectations: Sally Beauty reported $0.48 EPS vs. a $0.47 consensus and revenue of ~$943.2M (up 0.6% YoY), showing modest top- and bottom-line upside. Business Wire Release
• Positive Sentiment: Management lifted its FY 2026 EPS outlook (range 2.020–2.100), which investors interpreted as confidence in margin execution following the quarter. TipRanks: Lifts EPS Outlook
• Positive Sentiment: Shares reacted positively in early trading after the print and commentary, reflecting relief that results beat and management maintained a constructive view for the year. Proactive: Market Reaction
• Neutral Sentiment: Full earnings call and transcript are available — useful for digging into category trends, inventory, and margin drivers but offering a balanced (cautious) tone from management. Seeking Alpha: Call Transcript
• Neutral Sentiment: Analyst write-ups and metric breakdowns highlight the modest nature of the beat (small EPS beat and essentially flat revenue growth), so this quarter is more confirmation than a breakout. Zacks: Key Metrics
• Negative Sentiment: Mixed/soft near-term guidance: Q2 EPS guidance of $0.390–0.420 is below the consensus (~$0.45) and revenue guidance is narrowly ranged, which tempers the beat and signals possible near-term softness. Press Release / Guidance Details
• Negative Sentiment: Underlying growth remains modest (0.6% revenue growth YoY) and margins/returns are being watched closely; investors may rotate away if upcoming quarters don’t show acceleration. TipRanks: Call Highlights

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.