Sally Beauty Posts Adjusted EPS of $0.62 and Raises Quarterly Sales to $953 Million

Key Facts

Sally Beauty Holdings reported results on November 10, 2026, for the fourth quarter and fiscal year ended September 30, posting adjusted diluted EPS of $0.62, up 13% from the same period. GAAP EPS was $0.60, up 22% year over year. Consolidated net sales reached $953 million, up 0.6%, while comparable sales grew 0.9%. Sales exceeded the market estimate of $950.13 million, according to Investing.com. Results showed adjusted EPS growing faster than sales, alongside divergent performance across the company's two businesses.

GAAP operating earnings rose to $92.192 million in the quarter, from $79.944 million a year earlier, an increase of 15.3%. But gross margin fell to 51.9% from 52.2%, down 30 basis points. Sally stores posted sales of $550.315 million, up 1.6%. By contrast, Beauty Systems Group sales declined 0.8% to $402.212 million. The divergence shows that overall sales growth was uneven between the two business units.

Global e-commerce sales grew 8% to $113 million, accounting for 12% of quarterly net sales. CEO Denise Paulonis said fiscal 2026 saw "continued progress across our four growth engines," supporting sales and earnings growth. For the full fiscal year, net sales totaled $3.734567 billion, up 0.9%. Full-year GAAP diluted EPS rose 6.9% to $2.02. These figures place the quarter's performance within a year in which the company recorded annual growth in sales and accounting earnings.

Quarterly operating cash flow fell to $75.095 million from $120.878 million in the same period a year earlier. Free cash flow also declined to $46.910 million from $78.004 million. The cash declines came alongside higher quarterly GAAP operating earnings. The comparison between the metrics shows differing trends in operating earnings and quarterly cash flows. Free cash flow is among the metrics management included in its targets for the following fiscal year.

For fiscal 2027, the company is targeting comparable sales growth of between 1% and 2% and adjusted operating earnings of between $334 million and $347 million. It also expects capital spending of about $140 million and free cash flow of about $200 million. The company said half of expected free cash flow would be allocated to share repurchases. The guidance sets out operating, investment and capital-return targets for the coming fiscal year. The company cautioned in its disclosure that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, and that it undertakes no obligation to update them publicly.

After the results announcement, the company's shares rose 1.18% in premarket trading on November 10, according to Investing.com. In the November 9 session, EL7 data showed the stock closing at $19.49. Investing.com quoted a Raymond James analyst as saying the 2027 outlook was near market consensus, with a slight edge in EPS estimates. The assessment added that it was in line with the long-term financial plan management presented the previous year. The new guidance sits alongside the company's existing plan, while fiscal 2027 performance remains subject to the risks the company cited.