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

Posted by Francis Steltz on May 12th, 2026

Sally Beauty (NYSE:SBH – Get Free Report) announced its quarterly earnings data 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 for the quarter, compared to analyst estimates of $900.78 million. Sally Beauty had a return on equity of 26.07% and a net margin of 4.87%.Sally Beauty’s quarterly revenue was up 2.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.42 earnings per share. 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 Trading Down 9.6%

NYSE:SBH opened at $12.68 on Tuesday. The company has a market capitalization of $1.23 billion, a PE ratio of 7.20 and a beta of 1.07. The company has a quick ratio of 0.57, a current ratio of 2.37 and a debt-to-equity ratio of 1.02. Sally Beauty has a 52-week low of $8.45 and a 52-week high of $17.92. The stock has a fifty day simple moving average of $14.25 and a 200-day simple moving average of $14.95.

Key Stories Impacting Sally Beauty

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

Positive Sentiment: Sally Beauty beat Q2 expectations with EPS of $0.44 versus $0.41 expected and revenue of about $903 million versus estimates around $901 million, showing the business is still growing modestly. Sally Beauty Holdings Reports Second Quarter Fiscal 2026 Results
Positive Sentiment: The company also said operating cash flow improved sharply year over year, suggesting stronger underlying cash generation and financial flexibility. Sally Beauty shares edge higher after earnings beat and updated outlook
Neutral Sentiment: Management tightened full-year guidance, which can be read as a sign of confidence in execution, but also reflects a more cautious operating environment. Sally Beauty Reports Solid Q2 Results, Tightens 2026 Outlook
Negative Sentiment: The bigger drag appears to be guidance for Q3 EPS of $0.52-$0.56 and revenue of $932 million-$942 million, both below consensus, reinforcing concerns that consumers are becoming more frugal. Sally Beauty turns lower after warning on more ‘frugality’ in the marketplace
Negative Sentiment: Some reports noted the stock fell sharply during the session after the earnings release, indicating investors are punishing the weaker outlook more than rewarding the beat. Why Sally Beauty shares are getting obliterated today

Analyst Ratings Changes

SBH has been the topic of several research analyst reports. Canaccord Genuity Group boosted their target price on shares of Sally Beauty from $19.00 to $20.00 and gave the stock a “buy” rating in a research report on Tuesday, February 10th. Jefferies Financial Group reiterated a “hold” rating and issued a $16.00 price objective on shares of Sally Beauty in a research note on Wednesday, January 14th. Raymond James Financial raised shares of Sally Beauty from a “market perform” rating to an “outperform” rating and set a $19.00 price objective on the stock in a report on Wednesday, January 21st. TD Cowen upped their target price on shares of Sally Beauty from $17.00 to $18.00 and gave the stock a “buy” rating in a research report on Wednesday, January 21st. Finally, Morgan Stanley reduced 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 report on Tuesday. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Sally Beauty presently has an average rating of “Hold” and a consensus target price of $17.20.

Get Our Latest Research Report on SBH

Hedge Funds Weigh In On Sally Beauty

A number of institutional investors and hedge funds have recently bought and sold shares of SBH. Mariner LLC raised its position in shares of Sally Beauty by 6.1% during the 4th quarter. Mariner LLC now owns 15,400 shares of the specialty retailer’s stock worth $220,000 after buying an additional 890 shares in the last quarter. Russell Investments Group Ltd. raised its holdings in Sally Beauty by 0.6% during the fourth quarter. Russell Investments Group Ltd. now owns 183,249 shares of the specialty retailer’s stock worth $2,613,000 after purchasing an additional 1,081 shares in the last quarter. Larson Financial Group LLC lifted its position in Sally Beauty by 392.5% in the third quarter. Larson Financial Group LLC now owns 1,906 shares of the specialty retailer’s stock worth $31,000 after purchasing an additional 1,519 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Sally Beauty by 3.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 60,595 shares of the specialty retailer’s stock valued at $547,000 after purchasing an additional 2,026 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its stake in shares of Sally Beauty by 4.3% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 51,011 shares of the specialty retailer’s stock worth $472,000 after buying an additional 2,082 shares in the last quarter.

Sally Beauty Company Profile

(Get Free Report)

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.