Sally Beauty Surpasses Expectations in Q4 Results

by · WWD
A rendering of Sally Beauty Colorfest at The Grove in Los Angeles.Courtesy/3CS Productions LLC

Sally Beauty beat Wall Street estimates on both its top and bottom lines in its fourth quarter.

The Dallas-based beauty retailer saw net sales rise 0.6 percent to $953 million in the final quarter of fiscal 2026 ended Sept. 30, a touch above analysts’ estimates.

Comparable sales grew 0.9 percent, while global e-commerce sales increased 8 percent to $113 million, representing 12 percent of net sales.

Adjusted diluted net earnings per share were 62 cents, an increase of 13 percent compared to the prior year and above Wall Street estimates of 60 cents.

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For the full year, net sales came in at $3.73 billion, an increase of 0.9 percent compared to the prior year.

“We’re excited about the momentum in the business. What we showed in the quarter, in particular with Sally, where we’ve really been repositioning that business to be truly a specialty retailer, we’re seeing that work come through, and excited for the team to be able to have that recognition come through as we’re going to go into the holiday season,” said Denise Paulonis, president and chief executive officer.

Providing her view on the consumer, she noted that while they are price sensitive, it’s more about value: “They haven’t stopped buying the brands that they care about. They just know that they have to be cautious with how they’re spending their dollars. Sally is great at that because at the end of the day, it’s DIY and heavily hair color. So the cost of what they do in a salon versus what they can do at home, it’s value to begin with, which is a good positioning.”