Sally Beauty (NYSE:SBH) shares jumped nearly 7% today after the beauty products provider delivered a better-than-expected set of numbers for the first quarter. Despite a year-over-year decline of 2.7%, revenue of $931 million outpaced expectations by $1.51 million. Similarly, EPS of $0.39 exceeded estimates by $0.02.
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During the quarter, consolidated comparable sales decreased by 0.8% due to lower traffic and inflationary challenges. Further, an unfavorable sales mix shift and fixed cost absorption impacted the company’s adjusted gross margin by 60 basis points.
Looking ahead to Fiscal Year 2024, Sally Beauty expects flat net sales and comparable sales growth as gains from the company’s strategic initiatives are seen being offset by pressure on consumer spending. Furthermore, operating cash flow for the year is anticipated to be at least $260 million.
What Is the Price Target for SBH?
Shares of the company have soared by nearly 55% over the past three months. Overall, the Street has a Hold consensus rating on Sally Beauty, and the average SBH price target of $11.75 points to a potential downside of 9.4% in the stock.
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