Sally Beauty Reports Q4 Earnings Above Estimates and Raises FY2027 Outlook Above Consensus

Sally Beauty Holdings (NYSE:SBH) reported fourth-quarter fiscal 2026 adjusted earnings of $0.62 per share, exceeding analysts’ expectations of $0.60, while revenue increased 0.6% year-on-year to $953 million, above the consensus estimate of $950.13 million. Shares of the beauty products retailer rose 1.18% in premarket trading on Tuesday following the announcement.

Comparable sales increased 0.9%, contributing to the company’s quarterly revenue growth.

Fourth-Quarter Operating Earnings and Online Sales Increase

Sally Beauty reported adjusted operating earnings of $95 million, representing an operating margin of 10.0%, an improvement of 60 basis points from the previous year.

Global e-commerce sales increased 8% to $113 million, accounting for approximately 12% of total net sales.

President and Chief Executive Officer Denise Paulonis commented:

“We finished fiscal 2026 with positive momentum, delivering fourth quarter sales, operating earnings and double-digit adjusted EPS growth.”

“Throughout the year, we strengthened our business through disciplined execution, new customer growth, digital and omnichannel expansion, product innovation, and continued advancement of our long-term growth agenda.”

Fiscal 2027 Revenue and Earnings Guidance Exceeds Forecasts

For fiscal 2027, Sally Beauty expects adjusted earnings per share between $2.20 and $2.30, with a midpoint of $2.25, exceeding analysts’ consensus estimate of $2.07.

The company forecasts annual revenue of $3.77 billion to $3.81 billion, representing a midpoint of $3.79 billion, compared with the market consensus of $3.73 billion.

For the first quarter of fiscal 2027, Sally Beauty projects adjusted EPS of $0.48 to $0.52, with a midpoint of $0.50, below analysts’ expectations of $0.53.

First-quarter revenue is expected to range from $945 million to $955 million, with a midpoint of $950 million, slightly above the consensus estimate of $947.3 million.

Cash Flow, Debt Repayments and Share Repurchases

Sally Beauty generated $75 million in operating cash flow and $47 million in free cash flow during the fourth quarter.

The company also completed $20 million in term loan repayments and repurchased $42 million of its shares.

Its net debt leverage ratio stood at 1.4 times at the end of the reporting period.

The results reflected higher comparable sales, improved operating margins and increased e-commerce revenue. Sally Beauty’s fiscal 2027 earnings and revenue guidance exceeded market expectations, although its first-quarter adjusted earnings outlook was below consensus estimates.

Sally Beauty Holdings stock price