Sally Beauty (SBH) Shares Edge Higher After Earnings Beat and Updated Outlook

Sally Beauty Holdings Inc. (NYSE:SBH) shares roseate much than 2% successful premarket trading connected Monday aft the quality products retailer reported second-quarter results that exceeded expert expectations.

The institution besides narrowed its full-year guidance scope pursuing the quarterly performance.

Earnings and Revenue Top Estimates

For the 4th ended March 31, Sally Beauty posted adjusted net per stock of $0.44, up of expert expectations of $0.41 per share.

Revenue totaled $903 million, somewhat supra the statement forecast of $900.43 cardinal and up 2.3% from $883 cardinal successful the aforesaid play past year.

Comparable consolidated income accrued 1.3% during the quarter.

“Our 2nd 4th results bespeak coagulated execution and the resilience of our operating exemplary amid a dynamic macroeconomic environment,” said President and Chief Executive Officer Denise Paulonis. “We delivered low-single digit income growth, gross borderline expansion, and beardown currency travel from operations, driven by the compounding benefits of our maturation initiatives.”

Cash Flow Supports Debt Reduction and Share Buybacks

The institution generated $73 cardinal successful operating currency travel during the quarter.

Sally Beauty utilized the funds to trim debt, repurchase shares and proceed investing successful maturation initiatives.

During the period, the institution bought backmost 1.7 cardinal shares for $25 cardinal and repaid $20 cardinal of word indebtedness debt.

At quarter-end, Sally Beauty reported a nett indebtedness leverage ratio of 1.5x and said it had nary outstanding borrowings nether its revolving recognition facility.

Company Narrows Fiscal 2026 Revenue Guidance

For fiscal 2026, Sally Beauty tightened its gross outlook to a scope of $3.725 cardinal to $3.75 billion, compared with its erstwhile guidance scope of $3.71 cardinal to $3.77 billion.

The midpoint of the updated range, $3.74 billion, sits somewhat beneath expert expectations of $3.75 billion.

The institution maintained its adjusted net per stock guidance of $2.02 to $2.10 for the afloat year, with the midpoint broadly successful enactment with Wall Street forecasts.

Sally Beauty Supply and E-Commerce Show Strength

Within the company’s operating divisions, Sally Beauty Supply generated nett income of $521 million, up 4.1% year-over-year, portion comparable income accrued 2.5%.

Beauty Systems Group posted nett income of $382 million, broadly unchanged from the prior-year period, with comparable income declining 0.3%.

Global e-commerce income roseate 13% to $108 cardinal and accounted for astir 12% of full institution revenue.

Sally Beauty Holdings banal price