Sally Beauty Q4 sales slightly beat estimates on e-commerce growth

By Reuters News


Overview

  • Professional beauty retailer's Q4 net sales rose 0.6%, slightly beating analyst expectations

  • Adjusted diluted EPS for Q4 rose 13%, beating analyst expectations

  • Company repurchased $42 mln in shares during the quarter


Outlook

  • Sally Beauty sees FY27 net sales of $3.77 bln to $3.81 bln

  • Company expects FY27 comparable sales growth of 1% to 2%

  • Sally Beauty forecasts FY27 adjusted diluted EPS of $2.20 to $2.30


Result Drivers

  • E-COMMERCE GROWTH - Global e-commerce sales rose 8% in Q4 to $113 mln, accounting for 12% of net sales

  • COST CONTROL - Adjusted selling, general and administrative expenses fell by $5 mln from the prior year in Q4

  • SEGMENT PERFORMANCE - Sally Beauty segment net sales grew 1.6% and comparable sales rose 2.0% in Q4, while Beauty Systems Group segment sales declined 0.8%


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Slight Beat*

$952.53 mln

$950.07 mln (4 Analysts)

Q4 Adjusted EPS

Beat

$0.62

$0.60 (5 Analysts)

Q4 EPS

$0.60

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • 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 $18.00, about 7.6% below its November 9 closing price of $19.49

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago


Reuters Recommended Reads

  • Nov 9 - Turning Point Brands beats Q3 profit expectations on strong demand

  • Nov 9 - Bedding maker Somnigroup's Q3 results, FY forecast miss estimates

  • Nov 9 - Hain Celestial Q1 sales misses estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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