Sally Beauty Holdings Inc. (NYSE:SBH) reported fiscal third-quarter 2026 results on Monday that exceeded earnings expectations but fell short of Wall Street’s revenue forecast, sending the stock 3.14% lower in pre-market trading.
Earnings Beat Estimates While Revenue Falls Short
For the quarter ended June 30, 2026, Sally Beauty posted adjusted diluted earnings of $0.55 per share, narrowly topping analysts’ consensus estimate of $0.54.
Quarterly revenue totaled $935 million, below the market expectation of $947.48 million. Despite the shortfall, sales edged up 0.2% from the same period last year.
Comparable sales across the group were unchanged from a year earlier.
Company Tightens Full-Year Guidance
Sally Beauty updated its outlook for fiscal 2026, narrowing its revenue guidance to a range of $3.725 billion to $3.733 billion.
The midpoint of $3.729 billion sits slightly below analysts’ consensus forecast of $3.74 billion.
The company maintained its adjusted diluted earnings outlook, forecasting fiscal 2026 EPS between $2.04 and $2.08. The midpoint of $2.06 is broadly in line with market expectations.
Management Highlights Strategic Progress
President and Chief Executive Officer Denise Paulonis said the company continues to make progress on its long-term priorities.
“Our third quarter results reflect the progress we are making against our long-term strategy and the underlying strength of our operating model,” said Denise Paulonis, president and chief executive officer. “We delivered solid EPS growth and strong cash flow while continuing to invest in the initiatives that are reshaping our customer experience, expanding our reach and strengthening our competitive position.”
Sally Beauty Brand Outperforms Beauty Systems Group
The Sally Beauty retail segment delivered comparable sales growth of 1.6%, with revenue increasing 2.2% year over year to $538.6 million.
Management attributed the improvement to continued strength in hair color products, growth in digital sales and successful customer acquisition efforts.
By comparison, the Beauty Systems Group recorded a 2.4% decline in revenue to $396.9 million, while comparable sales fell 2.1%.
Cash Generation Remains Strong
Global e-commerce revenue increased 11% to $110 million, accounting for approximately 12% of total net sales during the quarter.
The company generated $81 million in operating cash flow and produced $62 million in free cash flow.
During the quarter, Sally Beauty repurchased approximately 1.9 million shares for $25 million and also repaid $20 million of outstanding term loan debt.
Sally Beauty Holdings stock price
