AI Earnings Predictions for Sally Beauty Holdings Inc. (Name to be changed from Sally Holdings Inc.) (SBH)

EX-99.1

2 exhibit991.htm

EX-99.1

exhibit991

Contact: Jeff Harkins Investor Relations 940-297-4131 jharkins@sallybeauty.com Sally Beauty Holdings Reports Third Quarter Fiscal 2026 Results  Q3 Consolidated Net Sales Increased 0.2%; Consolidated Comparable Sales Flat  Q3 GAAP Diluted EPS Increased 25%; Adjusted Diluted EPS Increased 8%  Q3 Cash Flow from Operations of $81 Million Deployed to Invest for Growth, Strengthen Balance Sheet and Return Value to Shareholders  Narrows Full Year Fiscal 2026 Outlook Within Prior Guidance Ranges PLANO, Texas, August 3, 2026 – Sally Beauty Holdings, Inc. (NYSE: SBH) (the “Company”), the leader in professional hair color, today announced financial results for its third quarter ended June 30, 2026. The Company will hold a conference call today at 7:30 a.m. Central Time to discuss these results and its business. “Our third quarter results reflect the progress we are making against our long-term strategy and the underlying strength of our operating model,” said Denise Paulonis, president and chief executive officer. “We delivered solid EPS growth and strong cash flow while continuing to invest in the initiatives that are reshaping our customer experience, expanding our reach and strengthening our competitive position. Sally U.S. and Canada delivered another strong quarter with 3.5% comparable sales growth, supported by the strength of hair color, digital growth and new customer acquisition. Importantly, the traction we are seeing across our strategic initiatives has helped drive 9% adjusted EPS growth year-to-date, underscoring our ability to deliver profitable growth while investing in the future. As we enter the final quarter of fiscal 2026, we remain focused on investing behind the growth initiatives that position Sally Beauty Holdings to deliver sustainable, profitable growth and long-term shareholder value.” Fiscal 2026 Third Quarter Summary • Consolidated net sales of $935 million, an increase of 0.2% compared to the prior year; • Consolidated comparable sales were flat; • Global e-commerce sales increased 11% to $110 million, representing 12% of net sales; • GAAP gross margin expansion of 90 basis points to 52.4%; • Adjusted Gross Margin expansion of 40 basis points to 52.4%; • GAAP selling, general and administrative expenses of $404 million, an increase of $1 million compared to the prior year; • Adjusted Selling, General and Administrative Expenses of $404 million, an increase of $5 million compared to the prior year; • GAAP operating earnings of $86 million and GAAP operating margin of 9.2%;

• Adjusted Operating Earnings of $87 million and Adjusted Operating Margin of 9.3%; • GAAP diluted net earnings per share of $0.55, an increase of 25% compared to the prior year; • Adjusted Diluted Net Earnings Per Share of $0.55, an increase of 8% compared to the prior year; • Cash flow from operations of $81 million and Free Cash Flow of $62 million; and • Completed $20 million in term loan repayment and $25 million in share repurchases. Balance Sheet and Cash Flow As of June 30, 2026, the Company had cash and cash equivalents of $173 million and no outstanding borrowings under its asset-based revolving line of credit. At the end of the quarter, inventory was $996 million, down 1% versus a year ago. Third quarter cash flow from operations was $81 million and Free Cash Flow totaled $62 million. During the quarter, the Company utilized its cash flow to repay $20 million of term loan B debt and repurchase 1.9 million shares under its share repurchase program at an aggregate cost of $25 million. The Company ended the third quarter with a net debt leverage ratio of 1.4x. Fiscal 2026 Third Quarter Segment Results Fiscal Year 2026 Guidance* ∗ The Company does not provide a reconciliation for forward-looking non-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of its reconciling items and the (In thousands, except percentages) Q3 FY26 Q3 FY25 Growth/(Decline) Q3 FY26 Q3 FY25 Growth/(Decline) Net Sales 538,570$ 526,782$ 2.2% 396,920$ 406,525$ (2.4)% Comparable Sales Growth/(Decline) 1.6% (1.1)% 270 bps (2.1)% 0.5% (260) bps Gross Margin 61.5% 60.9% 60 bps 40.1% 39.4% 70 bps Operating Earnings 89,356$ 83,305$ 7.3% 48,973$ 50,672$ (3.4)% Operating Margin 16.6% 15.8% 80 bps 12.3% 12.5% (20) bps Sally Beauty Beauty Systems Group Full Year Prior FY26 Guidance Updated FY26 Guidance Consolidated Net Sales $3.725 billion to $3.750 billion $3.725 billion to $3.733 billion (1) Comparable Sales Flat to up 1% Approximately 0.5% Adjusted Operating Earnings $328 million to $342 million $329 million to $335 million Adjusted Diluted EPS $2.02 to $2.10 $2.04 to $2.08 (2) Capital Expenditures Approximately $100 million No change Free Cash Flow Approximately $200 million No change (1) Assum

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8-K

false 0001368458 0001368458 2026-02-09 2026-02-09

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report: February 9, 2026 (Date of earliest event reported)

SALLY BEAUTY HOLDINGS, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware

1-33145

36-2257936

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

7900 Windrose Avenue

Plano, Texas

75024

(Address of Principal Executive Offices)

(Zip Code) Registrant’s Telephone Number, Including Area Code: (800) 777-5706 Not Applicable (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

SBH

New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On February 9, 2026, Sally Beauty Holdings, Inc. (the “Company”) issued the news release attached hereto as Exhibit 99.1 reporting the financial results of the Company for the first quarter ended December 31, 2025 (the “Earnings Release”).

Item 7.01 Regulation FD Disclosure

The Earnings Release also provides an update on the Company’s strategy and business outlook.

Item 9.01 Financial Statement and Exhibits

(d)

Exhibit

Description

99.1

News release reporting financial results for the first quarter ended December 31, 2025, issued by Sally Beauty Holdings, Inc. on February 9, 2026.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document). All of the information furnished in Items 2.02 and 7.01 of this report and the accompanying exhibit shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, unless expressly incorporated by reference therein.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SALLY BEAUTY HOLDINGS, INC.

February 9, 2026

By:

/s/ Denise Paulonis

Name: Denise Paulonis

Title: President and Chief Executive Officer