Sally Beauty Holdings Reports Strong Earnings Growth

Sally Beauty Holdings ( (SBH) ) has released its Q4 earnings. Here is a breakdown of the information Sally Beauty Holdings presented to its investors.

Sally Beauty Holdings, Inc. is a global leader in professional hair color, selling and distributing beauty supplies through its Sally Beauty Supply and Beauty Systems Group segments. The company offers a wide range of products for hair, nails, and skin care, catering to both professional and retail consumers.

In its latest earnings report, Sally Beauty Holdings announced a modest increase in fourth-quarter consolidated net sales by 1.3%, with comparable sales also rising by 1.3%. The company reported a significant increase in GAAP diluted EPS by 7% and adjusted diluted EPS by 10% for the quarter, reflecting strong financial performance.

Key highlights from the report include a full-year GAAP diluted EPS increase of 32% and adjusted diluted EPS growth of 12%. The company generated $275 million in cash flow from operations, which was used to invest in growth, strengthen the balance sheet, and return value to shareholders. Additionally, Sally Beauty provided fiscal 2026 guidance and long-term financial targets, indicating continued focus on growth and profitability.

The company’s strategic initiatives have resulted in robust performance across both its Sally and BSG segments, with a notable expansion in operating margins. Despite a slight decline in full-year net sales, the company maintained healthy gross margins and improved its operating earnings.

Looking ahead, Sally Beauty Holdings remains optimistic about its future prospects, supported by resilient customer demand and strategic initiatives aimed at driving growth and profitability. The company’s fiscal 2026 guidance and long-term targets reflect confidence in its ability to achieve sustained financial performance.