Earnings report 📈 Stocks 🌍 United States

Sally Beauty Reports Q4 Adjusted EPS of $0.62, Up 13% Year Over Year

Sally Beauty Holdings posted Q4 adjusted EPS of $0.62 on $953 million in sales, while setting fiscal 2027 guidance for adjusted EPS of $2.20-$2.30 and comparable sales growth of 1%-2%.

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Q4 adjusted EPS of $0.62 grew 13% (GAAP $0.60, +22%) with operating margin up 60 bps to 10.0%, and FY27 guidance of $2.20-$2.30 adjusted EPS implies roughly 6-11% growth on $2.08, described as in line with the company's financial algorithm. Solid execution and capital returns ($42 million Q4 buybacks, 1.4x net leverage) support the stock, but sales growth of only 0.6% and only in-line guidance limit upside.

Catalysts
  • ▲ Q4 FY2026 results reported November 10, 2026: adjusted diluted EPS $0.62, +13% year over year
  • ▲ FY2027 guidance: adjusted EPS $2.20-$2.30, comparable sales growth 1%-2%
Risk Factors
  • ▼ Q4 consolidated net sales grew only 0.6%, with Beauty Systems Group comparable sales down 0.6%
  • ▼ Q4 GAAP gross margin fell 30 bps to 51.9%; segment gross margin in Sally Beauty fell 70 bps to 60.6%

🎯 Key Takeaways

  • Q4 adjusted diluted EPS rose 13% to $0.62, while GAAP diluted EPS increased 22% to $0.60.
  • Consolidated net sales for the fourth quarter reached $953 million, reflecting a 0.6% increase.
  • Fiscal 2027 guidance projects adjusted EPS of $2.20-$2.30 and comparable sales growth of 1%-2%.
  • The company repurchased 2.6 million shares for $42 million during the fourth quarter.
  • Adjusted operating margin expanded 60 basis points to 10.0% in the fourth quarter.

📝 Executive Summary

Sally Beauty Holdings reported fourth-quarter 2026 results featuring a 13% increase in adjusted diluted EPS to $0.62 and consolidated net sales of $953 million. The company provided fiscal 2027 guidance targeting adjusted EPS between $2.20 and $2.30, supported by a 1.4x net leverage ratio and $42 million in share repurchases during the quarter.

❓ FAQ

How did Sally Beauty's fourth quarter results come in?

Fourth quarter net sales were $953 million, up 0.6%, comparable sales grew 0.9%, and adjusted diluted EPS rose 13% to $0.62, while GAAP EPS rose 22% to $0.60.

What is the company expecting for fiscal 2027?

Guidance calls for net sales of $3.77-$3.81 billion, comparable sales growth of 1%-2%, adjusted operating earnings of $334-$347 million, adjusted EPS of $2.20-$2.30, and free cash flow of about $200 million.