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