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Sally Beauty Gears Up to Report Q2 Earnings: What's in the Offing?
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Key Takeaways
Sally Beauty is set to report Q2 results on May 11, with revenues up 1.8% y/y.
Sally Beauty counts on resilient hair color demand, plus Keratin Complex and Milkshake launches at BSG.
SBH leans on LCOD, CRM and Save While You Skip the Salon to add customers, despite cautious spending.
Sally Beauty Holdings, Inc. (SBH - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2026 earnings on May 11, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $899.23 million, suggesting growth of 1.8% from the prior-year quarter's level.
The company is expected to witness a year-over-year decline in its bottom line. The Zacks Consensus Estimate, which has been stable over the past 30 days at 41 cents a share, indicates a decline of 2.4% compared to the prior year.
Sally Beauty Holdings, Inc. Price, Consensus and EPS Surprise
Sally Beauty, a specialty retailer and distributor of professional beauty supplies, has a trailing four-quarter earnings surprise of 10.9%, on average. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by 2.1%.
Factors Likely to Shape Sally Beauty’s Q2 Results
SBH’s second-quarter performance is likely to have benefited from continued strength in its core hair color category, which remains a highly resilient segment across both the consumer-facing Sally Beauty business and the professional-focused Beauty Systems Group. At its first-quarter earnings call, management also noted that salon customers continue prioritizing hair services even in a cautious macro environment, reinforcing the defensive nature of the category. For the quarter to be reported, the company expects continued momentum from color demand alongside launches such as Keratin Complex and Milkshake at BSG.
The Zacks Consensus Estimate indicates 1.8% and 1.6% increases in Sally Beauty Supply and Beauty Systems Group revenues, respectively, for the quarter under review.
Another key factor likely shaping the quarter is sustained traction from customer acquisition and personalization initiatives. Sally Beauty continues to benefit from its Licensed Colorist OnDemand (“LCOD”) platform, which management described as a meaningful customer acquisition and retention driver. In addition, SBH’s “Save While You Skip the Salon” campaign, CRM initiatives, performance marketing and personalization strategies have been resonating particularly well with millennial and Gen Z consumers. BSG is also expanding targeted offers and journey optimization efforts, which likely contributed positively to customer reactivation and spending trends in the quarter under review.
Product innovation and category expansion initiatives likely remained constructive contributors to top-line performance in the fiscal second quarter. Management highlighted strong demand for its value-oriented fragrance assortment. Beyond fragrance, Sally Ignited store refreshes are driving higher customer engagement, increased basket sizes and stronger cross-shopping into skin care and cosmetics. Meanwhile, BSG continues expanding into the skin and spa category while adding brands such as Moroccan Oil, Danger Jones and K18. These initiatives likely helped diversify demand beyond the core color business and supported incremental sales opportunities during the quarter.
The aforementioned initiatives are likely to have supported top-line growth. On the last reported quarter’s earnings call, management guided consolidated net sales of $895-$905 million, with comparable sales growth of 0.5-1.5% for the second quarter of fiscal 2026. On the profitability front, Sally Beauty’s second-quarter performance is likely to have benefited from ongoing gross-margin resilience and disciplined expense management under its Fuel for Growth initiative. Adjusted operating earnings are projected at $68-$71 million, with SG&A returning to a more normalized quarterly pattern and stable expense trends over a two-year period. Adjusted diluted EPS is expected to be 39-42 cents for the second quarter.
That said, the quarter may have faced pressure from a still-cautious consumer environment and temporary government shutdown-related disruptions. While core color demand tends to hold up, softness in discretionary categories or reduced traffic can weigh on overall momentum.
What the Zacks Model Predicts for SBH
As investors prepare for Sally Beauty’s fiscal second-quarter announcement, the question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Sally Beauty this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Sally Beauty currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies, which, according to our model, have the right combination of elements to post an earnings beat:
Chewy, Inc. (CHWY - Free Report) has an Earnings ESP of +3.5% and currently carries a Zacks Rank of 3. The top line is anticipated to advance year over year when it reports first-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.36 billion, which suggests a 7.9% rise from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Chewy’s first-quarter earnings is pinned at 43 cents per share, indicating 22.9% growth year over year. CHWY has a trailing four-quarter earnings surprise of 1.5%, on average.
The Gap, Inc. (GAP - Free Report) currently has an Earnings ESP of +25.11% and a Zacks Rank of 3. GAP is likely to register top-line growth when it reports first-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.53 billion, indicating 1.8% growth from the figure reported in the year-ago quarter.
The consensus estimate for GAP’s first-quarter earnings is pegged at 39 cents per share, implying a 23.5% decline from the year-earlier quarter. The consensus mark has remained stable in the past 30 days.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +0.14% and currently carries a Zacks Rank of 3. COST’s top line is expected to advance year over year when it reports third-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $68.87 billion, which suggests an 8.9% jump from the figure reported in the year-ago quarter.
The company is expected to register an increase in the bottom line. The consensus estimate for Costco’s third-quarter earnings is pegged at $4.88 per share, calling for 14% growth from the year-ago quarter. COST has a trailing four-quarter earnings surprise of 1.1%, on average.
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Sally Beauty Gears Up to Report Q2 Earnings: What's in the Offing?
Key Takeaways
Sally Beauty Holdings, Inc. (SBH - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2026 earnings on May 11, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $899.23 million, suggesting growth of 1.8% from the prior-year quarter's level.
The company is expected to witness a year-over-year decline in its bottom line. The Zacks Consensus Estimate, which has been stable over the past 30 days at 41 cents a share, indicates a decline of 2.4% compared to the prior year.
Sally Beauty Holdings, Inc. Price, Consensus and EPS Surprise
Sally Beauty Holdings, Inc. price-consensus-eps-surprise-chart | Sally Beauty Holdings, Inc. Quote
Sally Beauty, a specialty retailer and distributor of professional beauty supplies, has a trailing four-quarter earnings surprise of 10.9%, on average. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by 2.1%.
Factors Likely to Shape Sally Beauty’s Q2 Results
SBH’s second-quarter performance is likely to have benefited from continued strength in its core hair color category, which remains a highly resilient segment across both the consumer-facing Sally Beauty business and the professional-focused Beauty Systems Group. At its first-quarter earnings call, management also noted that salon customers continue prioritizing hair services even in a cautious macro environment, reinforcing the defensive nature of the category. For the quarter to be reported, the company expects continued momentum from color demand alongside launches such as Keratin Complex and Milkshake at BSG.
The Zacks Consensus Estimate indicates 1.8% and 1.6% increases in Sally Beauty Supply and Beauty Systems Group revenues, respectively, for the quarter under review.
Another key factor likely shaping the quarter is sustained traction from customer acquisition and personalization initiatives. Sally Beauty continues to benefit from its Licensed Colorist OnDemand (“LCOD”) platform, which management described as a meaningful customer acquisition and retention driver. In addition, SBH’s “Save While You Skip the Salon” campaign, CRM initiatives, performance marketing and personalization strategies have been resonating particularly well with millennial and Gen Z consumers. BSG is also expanding targeted offers and journey optimization efforts, which likely contributed positively to customer reactivation and spending trends in the quarter under review.
Product innovation and category expansion initiatives likely remained constructive contributors to top-line performance in the fiscal second quarter. Management highlighted strong demand for its value-oriented fragrance assortment. Beyond fragrance, Sally Ignited store refreshes are driving higher customer engagement, increased basket sizes and stronger cross-shopping into skin care and cosmetics. Meanwhile, BSG continues expanding into the skin and spa category while adding brands such as Moroccan Oil, Danger Jones and K18. These initiatives likely helped diversify demand beyond the core color business and supported incremental sales opportunities during the quarter.
The aforementioned initiatives are likely to have supported top-line growth. On the last reported quarter’s earnings call, management guided consolidated net sales of $895-$905 million, with comparable sales growth of 0.5-1.5% for the second quarter of fiscal 2026. On the profitability front, Sally Beauty’s second-quarter performance is likely to have benefited from ongoing gross-margin resilience and disciplined expense management under its Fuel for Growth initiative. Adjusted operating earnings are projected at $68-$71 million, with SG&A returning to a more normalized quarterly pattern and stable expense trends over a two-year period. Adjusted diluted EPS is expected to be 39-42 cents for the second quarter.
That said, the quarter may have faced pressure from a still-cautious consumer environment and temporary government shutdown-related disruptions. While core color demand tends to hold up, softness in discretionary categories or reduced traffic can weigh on overall momentum.
What the Zacks Model Predicts for SBH
As investors prepare for Sally Beauty’s fiscal second-quarter announcement, the question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Sally Beauty this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Sally Beauty currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies, which, according to our model, have the right combination of elements to post an earnings beat:
Chewy, Inc. (CHWY - Free Report) has an Earnings ESP of +3.5% and currently carries a Zacks Rank of 3. The top line is anticipated to advance year over year when it reports first-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.36 billion, which suggests a 7.9% rise from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Chewy’s first-quarter earnings is pinned at 43 cents per share, indicating 22.9% growth year over year. CHWY has a trailing four-quarter earnings surprise of 1.5%, on average.
The Gap, Inc. (GAP - Free Report) currently has an Earnings ESP of +25.11% and a Zacks Rank of 3. GAP is likely to register top-line growth when it reports first-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.53 billion, indicating 1.8% growth from the figure reported in the year-ago quarter.
The consensus estimate for GAP’s first-quarter earnings is pegged at 39 cents per share, implying a 23.5% decline from the year-earlier quarter. The consensus mark has remained stable in the past 30 days.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +0.14% and currently carries a Zacks Rank of 3. COST’s top line is expected to advance year over year when it reports third-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $68.87 billion, which suggests an 8.9% jump from the figure reported in the year-ago quarter.
The company is expected to register an increase in the bottom line. The consensus estimate for Costco’s third-quarter earnings is pegged at $4.88 per share, calling for 14% growth from the year-ago quarter. COST has a trailing four-quarter earnings surprise of 1.1%, on average.