Sally Beauty Holdings Stock Earnings Reports

Sally Beauty Holdings started fiscal 2026 with a solid quarter: consolidated net sales of $943 million (up 0.6%), comparable sales roughly flat, and adjusted diluted EPS of $0.48, a 12% increase. Strong gross margins (51.3%) and disciplined cost control — aided by the company’s Fuel for Growth program — drove outperformance on the bottom line. Sally segment saw color strength (up 8%) and digital momentum (Sally e-commerce +20%; global e-commerce +11%), while BSG remained resilient with color growth and modest comp pressure. Management completed exits of most lower‑margin full-service operations in Europe (creating ~ $10 million of FY26 sales headwind but no material profit impact) and continued early rollouts of new initiatives: fragrance in Sally stores (expanding to 2,000 stores), Sally Ignited store refreshes (38 completed, ~80 targeted by FY26 year‑end), LCOD consultations (~5,000 weekly), and new brand launches in BSG. Fuel for Growth is expected to deliver ~ $45 million of benefits in FY26 and cumulative run‑rate savings of ~$120 million by year‑end. Balance sheet/cash flow highlights: $93 million operating cash flow in Q1, $157 million cash on hand, $20 million term loan paydown, $21 million of share repurchases, and net leverage ~1.5x. Management raised the low end of FY26 EPS guidance to a range of $2.02–$2.10, reiterated consolidated net sales guidance of $3.71–$3.77 billion, and expects comparable sales flat to +1% for the year.