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Sally Beauty Lifts EPS Outlook After Solid Q1 Results

Story Highlights
  • Sally Beauty posted modest Q1 2026 sales growth, stronger margins, and higher adjusted EPS despite flat comparable sales.
  • Robust cash flow enabled debt reduction and buybacks, supporting a higher EPS outlook while maintaining prior sales guidance.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Sally Beauty Lifts EPS Outlook After Solid Q1 Results

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Sally Beauty ( (SBH) ) has provided an announcement.

On February 9, 2026, Sally Beauty Holdings reported first-quarter fiscal 2026 results for the period ended December 31, 2025, posting consolidated net sales of $943 million, up 0.6% year on year, with flat comparable sales and e-commerce contributing 11.7% of revenue. Despite a 22% drop in GAAP diluted EPS to $0.45, adjusted diluted EPS rose 12% to $0.48, supported by gross margin expansion and $93 million in operating cash flow, which funded debt reduction, $21 million of share repurchases, and left leverage at 1.5 times, prompting the company to raise the low end of its full-year EPS outlook while keeping sales and operating earnings guidance intact.

Segment results showed modest growth at the Sally Beauty unit and slightly lower sales but improved margins at Beauty Systems Group, underscoring stable but subdued demand across its channels. Management’s reaffirmed full-year revenue and operating earnings targets, alongside disciplined capital allocation and inventory reduction, signal a focus on margin resilience and shareholder returns in a competitive beauty retail environment.

The most recent analyst rating on (SBH) stock is a Buy with a $18.50 price target. To see the full list of analyst forecasts on Sally Beauty stock, see the SBH Stock Forecast page.

Spark’s Take on SBH Stock

According to Spark, TipRanks’ AI Analyst, SBH is a Outperform.

The score is driven primarily by solid financial performance (stable margins and strong free cash flow) and an attractive low P/E valuation. Earnings call commentary and guidance add support via improving profitability and higher FY2026 EPS expectations, while the overall score is tempered by remaining balance-sheet leverage risk and only moderate (not strong) technical momentum.

To see Spark’s full report on SBH stock, click here.

More about Sally Beauty

Sally Beauty Holdings Inc., based in Plano, Texas, is a specialty retailer and distributor focused on professional hair color and broader beauty products. The company operates through its Sally Beauty and Beauty Systems Group segments, serving both retail consumers and professional stylists, with a growing emphasis on global e-commerce channels.

Average Trading Volume: 1,783,132

Technical Sentiment Signal: Buy

Current Market Cap: $1.59B

Learn more about SBH stock on TipRanks’ Stock Analysis page.

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