Sally Beauty forged ahead in its fourth quarter, reporting sales and earnings gains that beat a Wall Street estimate.
Net earnings were $57.7 million, or 60 cents per diluted share, versus $49.9 million, or 49 cents per diluted share, in the year-previous quarter, according to the company. Adjusted for one-time events, net earnings were $59.7 million, or 62 cents per diluted share, versus $56.4 million, or 55 cents per diluted share, in the period a year before.
Zacks Investment Research analysts estimated Sally Beauty adjusted diluted earnings at 60 cents and revenues at $948.3 million.
Consolidated comparable sales grew 0.9% year over year in the quarter, the company noted.
Net sales were $952.5 million versus $947.1 million in the year-prior quarter. Operating earnings were $92.2 million versus $79.9 million in the prior-year quarter, while adjusted operating earnings were $94.8 million versus $88.6 million.
For the full fiscal year, net earnings were $200.1 million, or $2.02 per diluted share, versus $195.9 million, or $1.89 per diluted share, in the year previous. Adjusted net earnings were $205.9 million, or $2.08 per diluted share, versus $197.2 million, or $1.90 per diluted share, in the year before.
Net sales were $3.73 billion versus $3.7 billion in the year prior, the company maintained. Operating earnings were $326.5 million versus $327.8 million in the year earlier, while adjusted operating earnings were $334.3 million versus $328.4 million.
Net sales for the Sally Beauty division grew 1.6% year over year to $550.3 million, with comps up 2% and operating earnings up 2.6% to $88.4 million. Net sales for the Beauty Systems Group declined 0.8% year over year to $402.2 million, with comps down 0.6% and operating earnings up 1.2% to $51.9 million.
Sally Beauty provided guidance for fiscal year 2027, when it anticipates adjusted diluted earnings per share of $2.20 to $2.30 and consolidated net sales of $3.77 billion to $3.81 billion. In the third quarter, the company updated its 2026 full-year guidance on consolidated net sales to $3.725 billion to $3.733 billion and on adjusted diluted EPS to $2.04 to $2.08.
“We finished fiscal 2026 with positive momentum, delivering fourth-quarter sales, operating earnings and double-digit adjusted EPS growth,” said Denise Paulonis, Sally Beauty president and CEO. “Throughout the year, we strengthened our business through disciplined execution, new customer growth, digital and omnichannel expansion, product innovation and continued advancement of our long-term growth agenda. We generated $323 million of cash from operations, strengthened our balance sheet and returned significant capital to shareholders while continuing to invest in our future. As we enter fiscal 2027, we are focused on scaling the capabilities and growth platforms we have built, deepening customer engagement and generating profitable growth, all in support of driving long-term shareholder value.”
