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Will Sally Beauty's Strategies & Happy Beauty Concept Power Growth?
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Key Takeaways
Sally Beauty is refreshing its brand to shift from a supply house to a modern beauty retailer.
The Happy Beauty concept drives traffic with indie brands, Korean beauty and fragrances.
SBH's Fuel for Growth program targets cost savings, margin gains and stronger loyalty.
Sally Beauty Holdings, Inc. (SBH - Free Report) rides on its strategic priorities, focusing on customer engagement, high-margin owned brands and innovation. The company is refreshing its brand, modernizing its identity while elevating its digital presence and in-store experience to solidify its position as a leading destination for beauty.
The updated branding, featuring a modern, sophisticated expression, implemented across all media touchpoints, includes in-store marketing and digital assets. The Sally brand refresh is crafted to pivot the company from a beauty supply house to a modernized specialty beauty retailer. It is unifying its brand messaging around hair to position itself as a modern beauty retailer and attract a broader, more loyal customer base.
Sally Beauty is prioritizing the customer journey and operational excellence to bring a seamless in-store experience. The company is progressing with its Happy Beauty concept, delivering value-driven beauty experience at great prices in an accessible, fun environment. A core part of the strategy involves enhancing the product assortment and in-store experience, anchored by compelling brand storytelling.
SBH is seeing encouraging trends in its Happy Beauty stores, particularly in the mall stores with natural traffic. Sally Beauty is positioning Happy Beauty as a destination for indie beauty brands, with a strong emphasis on trending categories such as Korean beauty and fragrance collections.
Sally Beauty’s Fuel for Growth program remains key to cost savings and margin expansion through operational efficiencies. The expansion of its marketplace partnerships and loyalty program is driving customer retention and sales growth, while investments in exclusive brands and product innovation support long-term success.
SBH’s Price Performance, Valuation and Estimates
Sally Beauty’s shares have surged 38.8% year to date compared with the industry’s 10.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, SBH trades at a forward price-to-earnings ratio of 7.28X compared with the industry’s average of 18.95X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBH’s fiscal 2025 and fiscal 2026 earnings per share (EPS) indicates year-over-year growth of 8.9% and 9.1%, respectively. The company’s EPS estimate for fiscal 2025 and fiscal 2026 has moved north in the past 30 days.
Image Source: Zacks Investment Research
Sally Beauty currently sports a Zacks Rank #1 (Strong Buy).
The consensus estimate for Levi Strauss’ current financial-year EPS indicates growth of 4% from the year-ago figure. LEVI delivered an average earnings surprise of 25.9% in the trailing four quarters.
Genesco Inc. (GCO - Free Report) operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy) at present. GCO delivered a trailing four-quarter earnings surprise of 28.1%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year EPS and sales indicates growth of 67% and 3%, respectively, from the year-ago period’s reported figures.
Allbirds, Inc. (BIRD - Free Report) , a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.
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Will Sally Beauty's Strategies & Happy Beauty Concept Power Growth?
Key Takeaways
Sally Beauty Holdings, Inc. (SBH - Free Report) rides on its strategic priorities, focusing on customer engagement, high-margin owned brands and innovation. The company is refreshing its brand, modernizing its identity while elevating its digital presence and in-store experience to solidify its position as a leading destination for beauty.
The updated branding, featuring a modern, sophisticated expression, implemented across all media touchpoints, includes in-store marketing and digital assets. The Sally brand refresh is crafted to pivot the company from a beauty supply house to a modernized specialty beauty retailer. It is unifying its brand messaging around hair to position itself as a modern beauty retailer and attract a broader, more loyal customer base.
Sally Beauty is prioritizing the customer journey and operational excellence to bring a seamless in-store experience. The company is progressing with its Happy Beauty concept, delivering value-driven beauty experience at great prices in an accessible, fun environment. A core part of the strategy involves enhancing the product assortment and in-store experience, anchored by compelling brand storytelling.
SBH is seeing encouraging trends in its Happy Beauty stores, particularly in the mall stores with natural traffic. Sally Beauty is positioning Happy Beauty as a destination for indie beauty brands, with a strong emphasis on trending categories such as Korean beauty and fragrance collections.
Sally Beauty’s Fuel for Growth program remains key to cost savings and margin expansion through operational efficiencies. The expansion of its marketplace partnerships and loyalty program is driving customer retention and sales growth, while investments in exclusive brands and product innovation support long-term success.
SBH’s Price Performance, Valuation and Estimates
Sally Beauty’s shares have surged 38.8% year to date compared with the industry’s 10.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, SBH trades at a forward price-to-earnings ratio of 7.28X compared with the industry’s average of 18.95X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBH’s fiscal 2025 and fiscal 2026 earnings per share (EPS) indicates year-over-year growth of 8.9% and 9.1%, respectively. The company’s EPS estimate for fiscal 2025 and fiscal 2026 has moved north in the past 30 days.
Image Source: Zacks Investment Research
Sally Beauty currently sports a Zacks Rank #1 (Strong Buy).
Other Solid Picks in Retail
Levi Strauss & Co. (LEVI - Free Report) , designer and marketer of jeans, casual wear and related accessories, currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Levi Strauss’ current financial-year EPS indicates growth of 4% from the year-ago figure. LEVI delivered an average earnings surprise of 25.9% in the trailing four quarters.
Genesco Inc. (GCO - Free Report) operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy) at present. GCO delivered a trailing four-quarter earnings surprise of 28.1%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year EPS and sales indicates growth of 67% and 3%, respectively, from the year-ago period’s reported figures.
Allbirds, Inc. (BIRD - Free Report) , a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.