The fourth quarter marked a strong finish to Sally Beauty Holdings’ fiscal year, as the company delivered revenue and earnings ahead of Wall Street expectations.
A Zacks Investment Research analyst consensus estimate called for adjusted diluted earnings per share of 49 cents and revenues of $933 million.
Comparable sales gained 1.3% in the quarter, year over year, Sally Beauty reported. Net sales were $947.1 million versus $935 million in the year-before quarter. Operating earnings were $79.9 million versus $82.3 million in the year-previous period, while adjusted operating earnings were $88.6 million versus $88 million.
By operating segment, net sales at Sally Beauty Supply were $541.6 million, up from $534.1 million in the year-past quarter, with comps up 1.2%, while operating earnings were $86.2 million, down from $92.9 million. Net sales at Beauty Systems Group were $405.5 million, up from $401 million in the year-past period, with comps up 1.4%, while operating earnings were $51.3 million, up from $44 million.
For the full fiscal year, net earnings were $195.9 million, or $1.89 per diluted share, versus $153.4 million, or $1.43 per diluted share, in the year prior. Adjusted net earnings were $197.2 million, or $1.90 per diluted share, versus $180.3 million, or $1.69 per diluted share, in the year earlier.
Net sales were $3.7 billion versus $3.72 billion in the year before. Operating earnings were $327.8 million versus $282.7 million in the previous year, while adjusted operating earnings were $328.4 million versus $314.6 million.
Fiscal 2026 guidance called for consolidated net sales of $3.71 billion to $3.77 billion and adjusted diluted earnings per share of $2 to $2.10.
“We concluded the year with fourth quarter results that exceeded our expectations, highlighted by solid topline growth and healthy gross margins that drove 10% adjusted EPS growth and robust free cash flow,” said Denise Paulonis, Sally Beauty president and CEO, in announcing the financial results. “Importantly, sharp execution against our strategic initiatives drove broad-based strength across both our Sally and BSG segments. We also delivered strong full-year results, including 40 basis points of adjusted operating margin expansion and 12% adjusted EPS growth while deploying our cash to invest for growth, strengthen our balance sheet and return value to shareholders.”
