Sally Beauty Q1 Earnings Call Highlights

3 weeks ago 11

MarketBeat

Mon, February 9, 2026 astatine 10:19 AM CST 9 min read

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Strong commencement to fiscal 2026: Sally Beauty reported Q1 income of $943 million and adjusted diluted EPS of $0.48 (up 12%), with adjusted gross borderline adjacent 51% and absorption raising the debased extremity of FY26 adjusted EPS guidance to $2.02–$2.10, driven by outgo subject and "Fuel for Growth" savings.
Digital and conception momentum: the Sally conception showed improving comps (Sally U.S. & Canada +1.3%) and e‑commerce grew 20% to $50M, portion BSG e‑commerce roseate 4% to $60M, and "Sally Ignited" store refreshes are lifting lawsuit acquisition and handbasket metrics.
Cash procreation and superior deployment: Q1 operating currency travel was $93M with escaped currency travel of $57M, enabling a $20M term‑loan paydown and $21M of stock repurchases, leaving nett leverage astir 1.5x.
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Sally Beauty (NYSE:SBH) executives told investors the institution delivered a “strong start” to fiscal 2026, with first-quarter results landing astatine the precocious extremity of expectations for income and adjusted operating income and supra its guidance scope for adjusted diluted net per share.

Management pointed to gross borderline strength, outgo controls, and benefits from its Fuel for Growth programme arsenic cardinal drivers of net outperformance, portion besides noting the 4th included macro volatility tied “most notably” to authorities shutdowns that pressured request aboriginal successful the play earlier trends improved successful December.

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For the archetypal quarter, the institution reported full income of $943 million, with consolidated comparable income level twelvemonth implicit year. CEO Denise Paulonis said adjusted diluted EPS roseate 12% to $0.48, driven by “strong gross margins of 51%,” outgo discipline, and Fuel for Growth benefits.

CFO Marlo Cormier provided further detail, noting consolidated nett income accrued 0.6% and included a 90-basis-point payment from overseas currency translation. Global e-commerce income accrued 11% to $111 million, representing 12% of full nett sales.

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Adjusted gross borderline expanded 50 ground points to 51.3%, which Cormier said was chiefly attributable to higher merchandise margins successful some segments, reflecting Fuel for Growth benefits. Adjusted SG&A totaled $404 million, up $6 cardinal twelvemonth implicit year, arsenic higher labour and compensation-related costs, rent, and advertizing were partially offset by $4.5 cardinal successful Fuel for Growth benefits.