Sally Beauty beat Wall Street first-quarter sales and earnings predictions and updated its guidance.
Net earnings were $42.7 million, or 43 cents per diluted share, versus $39.2 million, or 38 cents per diluted share, in the year-prior quarter. Adjusted for one-time events, net earnings were $43.5 million, or 44 cents per diluted share, versus $43.5 million, or 42 cents per diluted share, in the year-earlier period, the company reported.
A Zacks Investment Research analyst consensus estimate called for adjusted diluted earnings per share of 41 cents and revenues of $899.3 million.
Consolidated comparable sales growth was 1.3% in the quarter year over year, Sally Beauty maintained. Net sales were $903.4 million versus $883.1 million, in the year-before quarter. Operating earnings were $71.9 million versus $69.4 million in the year-previous period, and adjusted operating earnings were $73 million versus $75 million.
In the Sally Beauty Supply segment, net sales were $521.2 million versus $500.6 million in the year-past period, while operating earnings were $78.1 million versus $77.3 million. In the Beauty Systems Group segment, net sales were $382.1 million versus $382.6 million, while operating earnings were $47.4 million versus $43.9 million.
Sally Beauty updated full fiscal year guidance for consolidated net sales to $3.73 billion to $3.75 billion from earlier guidance for $3.71 billion to $3.77 billion. Outlook for adjusted diluted earnings per share, at $2.02 to $2.10 remained unchanged.
“Our second-quarter results reflect solid execution and the resilience of our operating model amid a dynamic macroeconomic environment,” said Denise Paulonis, Sally Beauty president and CEO. “We delivered low-single digit sales growth, gross margin expansion, and strong cash flow from operations, driven by the compounding benefits of our growth initiatives. As we enter the second half of fiscal 2026, we remain confident in our full-year outlook and believe the company is positioned to deliver consistent, profitable growth and shareholder value over the long-term.”
