Sally Beauty (SBH) Shares Edge Higher After Earnings Beat and Updated Outlook

Sally Beauty Holdings Inc. (NYSE:SBH) shares rose more than 2% in premarket trading on Monday after the beauty products retailer reported second-quarter results that exceeded analyst expectations.

The company also narrowed its full-year guidance range following the quarterly performance.

For the quarter ended March 31, Sally Beauty posted adjusted earnings per share of $0.44, ahead of analyst expectations of $0.41 per share.

Revenue totaled $903 million, slightly above the consensus forecast of $900.43 million and up 2.3% from $883 million in the same period last year.

Comparable consolidated sales increased 1.3% during the quarter.

“Our second quarter results reflect solid execution and the resilience of our operating model amid a dynamic macroeconomic environment,” said President and Chief Executive Officer Denise Paulonis. “We delivered low-single digit sales growth, gross margin expansion, and strong cash flow from operations, driven by the compounding benefits of our growth initiatives.”

The company generated $73 million in operating cash flow during the quarter.

Sally Beauty used the funds to reduce debt, repurchase shares and continue investing in growth initiatives.

During the period, the company bought back 1.7 million shares for $25 million and repaid $20 million of term loan debt.

At quarter-end, Sally Beauty reported a net debt leverage ratio of 1.5x and said it had no outstanding borrowings under its revolving credit facility.

For fiscal 2026, Sally Beauty tightened its revenue outlook to a range of $3.725 billion to $3.75 billion, compared with its previous guidance range of $3.71 billion to $3.77 billion.

The midpoint of the updated range, $3.74 billion, sits slightly below analyst expectations of $3.75 billion.

The company maintained its adjusted earnings per share guidance of $2.02 to $2.10 for the full year, with the midpoint broadly in line with Wall Street forecasts.

Within the company’s operating divisions, Sally Beauty Supply generated net sales of $521 million, up 4.1% year-over-year, while comparable sales increased 2.5%.

Beauty Systems Group posted net sales of $382 million, broadly unchanged from the prior-year period, with comparable sales declining 0.3%.

Global e-commerce sales rose 13% to $108 million and accounted for approximately 12% of total company revenue.