Sally Beauty Q4 Earnings Beat Estimates, Sales Increase Y/Y

Sally Beauty Holdings, Inc. (SBH) reported fourth-quarter fiscal 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.SBH’s Q4 Performance: Key Metrics and InsightsSally Beauty’s adjusted earnings were 55 cents per share, which came above the Zacks Consensus Estimate of 49 cents. The metric increased 10% from 50 cents per share in the year-ago period.Sally Beauty Holdings, Inc. Price, Consensus and EPS Surprise Sally Beauty Holdings, Inc. price-consensus-eps-surprise-chart | Sally Beauty Holdings, Inc. QuoteThe company reported consolidated net sales of $947.1 million, which beat the Zacks Consensus Estimate of $933 million. The metric increased 1.3% from $935 million posted in the year-ago period. Consolidated comparable sales increased 1.3% year over year.Global e-commerce sales totaled $105 million, representing 11.1% of consolidated net sales for the quarter.Sally Beauty’s Margin & Cost DetailsThe company’s gross profit increased 3.1% year over year to $494.1 million, with the gross margin expanding 100 basis points to 52.2%. Adjusted selling, general and administrative expenses rose to $405.3 million, up $14 million from last year. As a percentage of sales, adjusted SG&A stood at 42.8% compared with 41.8% a year earlier.Adjusted operating earnings were $88.6 million, up from $88 million in the year-ago quarter. The adjusted operating margin was flat at 9.4%.Adjusted EBITDA was $117.4 million, representing a drop of 0.6% from the previous year. The adjusted EBITDA margin decreased 20 basis points year over year to 12.4%.SBH’s Sales Insights by SegmentsSally Beauty Supply: Net sales in this segment rose 1.4% year over year to $541.6 million. Comparable sales grew 1.2%, though operating margin fell 150 basis points to 15.9%. The segment’s gross margin expanded 90 basis points to 61.3%.Beauty Systems Group: Net sales climbed 1.1% to $405.5 million. Comparable sales improved 1.4%, while the operating margin expanded 160 basis points to 12.6%, supported by a 100-basis-point improvement in gross margin to 40%.Sally Beauty’s Financial Health SnapshotSBH ended the fiscal fourth quarter with cash and cash equivalents of $149.2 million, long-term debt, including capital leases, of $862 million and total stockholders’ equity of $794.2 million.In the fiscal fourth quarter, the company provided cash flow from operations of $121 million. The operating free cash flow was $78 million.In the quarter, the company paid $21 million of term loan and repurchased shares under its share repurchase program for a total cost of $20 million.What to Expect From SBH in the Future?Management introduced its fiscal 2026 guidance, projecting comparable sales to be flat to up 1% year over year. Consolidated net sales are expected to be between $3.71 billion and $3.77 billion, while adjusted operating earnings are forecasted between $328 million and $342 million. The company anticipates adjusted earnings per share in the range of $2.00 to $2.10 for the fiscal year.This Zacks Rank #3 (Hold) stock has gained 10.5% in the past three months against the industry’s decline of 9.5%.Image Source: Zacks Investment ResearchStocks to ConsiderUlta Beauty, Inc. (ULTA) operates as a specialty beauty retailer in the United States, Mexico and Kuwait. At present, Ulta Beauty sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Ulta Beauty’s current fiscal-year sales implies growth of 6.8%, from the year-ago figures. ULTA delivered a trailing four-quarter earnings surprise of 16.3%, on average.Five Below, Inc. (FIVE) operates as a specialty value retailer in the United States. It sports a Zacks Rank #2 (Buy) at present. Five Below delivered a trailing four-quarter earnings surprise of 50.5%, on average. The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings implies an increase of 16.2% and 1.2%, respectively, from the prior-year levels.Dollar General Corporation (DG), a discount retailer, provides various merchandise products in the southern, southwestern, midwestern and eastern United States. It carries a Zacks Rank #2 at present. Dollar General delivered a trailing four-quarter earnings surprise of 11.3%, on average. The Zacks Consensus Estimate for Dollar General’s current fiscal-year sales and earnings implies an increase of 4.7% and 3.6%, respectively, from the prior-year levels.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dollar General Corporation (DG): Free Stock Analysis Report Ulta Beauty Inc. (ULTA): Free Stock Analysis Report Sally Beauty Holdings, Inc. (SBH): Free Stock Analysis Report Five Below, Inc. (FIVE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks