Sally Beauty narrowed its FY26 net sales outlook to $3.725 bln-$3.733 bln from $3.725 bln-$3.750 bln
The company now expects FY26 comparable sales to increase approximately 0.5%
Sally Beauty sees FY26 adjusted diluted EPS of $2.04-$2.08, narrowed from $2.02-$2.10
Q3 results
US professional beauty retailer's fiscal Q3 sales rose 0.2%, a slight miss versus analyst expectations
Adjusted EPS for fiscal Q3 rose 8%, beating analyst expectations
Company repurchased $25 mln in shares and repaid $20 mln in debt during Q3
Result drivers
Segment performance - Sally U.S. and Canada segment delivered 3.5% comparable sales growth, driven by hair color, digital growth and new customer acquisition
E-commerce growth - Global e-commerce sales increased 11% to $110 mln, representing 12% of net sales
Gross margin expansion - GAAP gross margin expanded by 90 basis points to 52.4%
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"
Wall Street's median 12-month price target for Sally Beauty Holdings Inc is $17.00, about 13.6% above its July 31 closing price of $14.97
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago
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