For its first fiscal quarter, Sally Beauty Holdings adjusted earnings and revenue increased, but while profits beat a Wall Street analyst estimate, revenues came in just short of expectations.
Net earnings were $45.6 million, or 45 cents per diluted share, versus $61 million, or 58 cents per diluted share, in the year-before quarter, the company noted. Adjusted for one-time events, net earnings were $48.5 million, or 48 cents per diluted share, versus $44.8 million, or 43 cents per diluted share, in the year-previous period.
A Zacks Investment Research analyst consensus estimate was for earnings per adjusted diluted share of 47 cents and revenues of $943.9 million.
Consolidated comparable sales were flat year over year, Sally Beauty reported. Net sales were $943.2 million versus $937.9 million in the year-earlier quarter. Operating earnings were $75.9 million versus $100.3 million in the year-prior period, while adjusted operating earnings were $79.9 million versus $78.5 million.
Net sales in the Sally Beauty Supply segment were $531.6 million, with operating earnings of $77.9 million, compared with $525.4 million and $79.9 million in the year-prior quarter, the company reported. In the Beauty Systems Group segment, net sales were $411.6 million, with operating earnings of $53.9 million, compared with $412.4 million and $50.5 million in the year-prior period.
In providing guidance for the fiscal year ahead, Sally Beauty stated that consolidated net sales would be $3.71 billion to $3.77 billion, consistent with prior guidance, but that adjusted earnings per diluted share would be $2.02 to $2.10, versus the $2 to $2.10 outlook previously announced.
“Our first quarter performance marks a strong start to fiscal 2026,” said Denise Paulonis, Sally Beauty president and CEO, in introducing the financial results. “We achieved top-line results that met our expectations, maintained healthy gross margins and delivered adjusted EPS growth of 12%, consistent with our long-term financial algorithm. Our robust cash flow from operations enabled us to invest for growth, reduce debt and return value to shareholders. We also made continued progress on our strategic initiatives designed to accelerate growth and increase profitability.”
