Sally Beauty (NYSE:SBH) Announces Earnings Results, Beats Expectations By $0.03 EPS

Sally Beauty (NYSE:SBH) issued its quarterly earnings results on Monday. The specialty retailer reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.41 by $0.03, Briefing.com reports. The firm had revenue of $903.38 million during the quarter, compared to analysts’ expectations of $900.78 million. Sally Beauty had a net margin of 4.93% and a return on equity of 24.95%. Sally Beauty’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.42 EPS. Sally Beauty updated its Q3 2026 guidance to 0.520-0.560 EPS.

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

• Q2 results showed momentum with total net sales of $903M (+2.3%), comparable sales +1.3%, adjusted operating income of $73M, adjusted EPS of $0.44, and $73M cash from operations used to repurchase $25M of shares and pay down $20M of debt.
• The Sally segment outperformed—net sales +4.1% and comps +2.5%—driven by strong color performance (~+11–12%), e-commerce strength, a successful fragrance rollout to 2,000 stores, app improvements, and early success from 40 Sally Ignited remodels that are lifting UPT and ATV.
• The BSG segment had roughly flat top-line (net sales ~$382M, comps down 0.3%) but materially improved profitability—gross margin +110 bps to 40.9% and operating margin +90 bps to 12.4%—with management focused on assortment, new brands and marketing to drive growth.
• Management tightened FY top-line guidance to $3.725B–$3.75B while keeping full-year adjusted operating earnings and EPS targets, expects ~$45M of FY26 benefits from the Fuel for Growth program (on track to a $120M run rate) and plans to deploy ~50% of free cash flow to buybacks.

Sally Beauty Stock Performance

Shares of SBH stock traded down $0.47 during mid-day trading on Wednesday, hitting $12.03. The stock had a trading volume of 884,644 shares, compared to its average volume of 1,612,800. The company has a debt-to-equity ratio of 0.98, a current ratio of 2.34 and a quick ratio of 0.57. Sally Beauty has a fifty-two week low of $8.45 and a fifty-two week high of $17.92. The company’s 50-day simple moving average is $14.18 and its 200-day simple moving average is $14.93. The firm has a market cap of $1.17 billion, a PE ratio of 6.61 and a beta of 1.07.

Wall Street Analyst Weigh In

SBH has been the subject of a number of recent research reports. Jefferies Financial Group reiterated a “hold” rating and set a $16.00 price target on shares of Sally Beauty in a research note on Wednesday, January 14th. TD Cowen decreased their price target on shares of Sally Beauty from $20.00 to $17.00 and set a “buy” rating for the company in a research note on Tuesday. Wall Street Zen upgraded shares of Sally Beauty from a “hold” rating to a “buy” rating in a research note on Tuesday, March 10th. Weiss Ratings upgraded shares of Sally Beauty from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday. Finally, Morgan Stanley decreased their price target on shares of Sally Beauty from $16.00 to $13.00 and set an “underweight” rating for the company in a research note on Tuesday. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $17.00.

Institutional Trading of Sally Beauty

Several hedge funds and other institutional investors have recently made changes to their positions in SBH. Wasatch Advisors LP acquired a new stake in shares of Sally Beauty in the third quarter valued at about $74,842,000. Goldman Sachs Group Inc. boosted its stake in shares of Sally Beauty by 46.0% during the 4th quarter. Goldman Sachs Group Inc. now owns 3,981,998 shares of the specialty retailer’s stock worth $56,783,000 after acquiring an additional 1,254,125 shares in the last quarter. Lazard Asset Management LLC increased its stake in Sally Beauty by 1,333.4% in the 4th quarter. Lazard Asset Management LLC now owns 840,539 shares of the specialty retailer’s stock valued at $11,986,000 after purchasing an additional 781,901 shares in the last quarter. Millennium Management LLC increased its stake in Sally Beauty by 126.7% in the 3rd quarter. Millennium Management LLC now owns 1,058,358 shares of the specialty retailer’s stock valued at $17,230,000 after purchasing an additional 591,426 shares in the last quarter. Finally, Raymond James Financial Inc. increased its stake in Sally Beauty by 12,241.2% in the 3rd quarter. Raymond James Financial Inc. now owns 449,468 shares of the specialty retailer’s stock valued at $7,317,000 after purchasing an additional 445,826 shares in the last quarter.

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.