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Factors to Watch Ahead of Sally Beauty's Q4 Earnings Release

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Key Takeaways

  • Sally Beauty's Q4 earnings are expected to rise 9.1% to 60 cents per share, with sales of $948.3M.
  • Strong hair color demand, e-commerce growth and targeted marketing may have supported SBH's Q4 sales.
  • SBH's cost savings may aid margins, while weak hair care demand and promotions remain headwinds.

Sally Beauty Holdings, Inc. (SBH - Free Report) is likely to witness bottom-line growth when it reports fourth-quarter fiscal 2026 earnings on Nov. 10. 

The consensus mark for earnings has remained unchanged over the past 30 days at 60 cents a share, though it suggests an increase of 9.1% from the year-ago period’s figure. SBH has a trailing four-quarter surprise of 6.4%, on average.

The Zacks Consensus Estimate for revenues is pegged at $948.3 million, indicating slight growth from the year-ago reported figure of $947.1 million.

Sally Beauty Holdings, Inc. Price, Consensus and EPS Surprise

Sally Beauty Holdings, Inc. Price, Consensus and EPS Surprise

Sally Beauty Holdings, Inc. price-consensus-eps-surprise-chart | Sally Beauty Holdings, Inc. Quote

Factors Likely to Influence SBH’s Upcoming Results

Sally Beauty Holdings’ fourth-quarter performance is likely to have benefited from sustained demand for professional hair color, particularly in the United States and Canada. Customer acquisition initiatives, supported by targeted marketing and the revamped “Your Beauty Journey, No Salon Required” campaign, may have aided traffic. Growing fragrance demand and continued strength in hair color could have supported customer spending.

The company’s digital initiatives are likely to have provided support. Continued e-commerce momentum, enhanced mobile applications and improved customer engagement may have aided conversions and sales. The hair care assortment reset, expansion of men’s offerings and new brand introductions at Beauty Systems Group could have strengthened product appeal and customer engagement.

Sally Beauty’s ongoing Ignited store refreshes and planned Happy Beauty mall openings may have supported sales through broader assortments and enhanced shopping experiences. Continued benefits from the Fuel for Growth program, which management expects to deliver approximately $45 million in fiscal 2026 savings, are likely to have supported product margins and operating efficiency.

However, persistent hair care softness, cautious discretionary spending among salon professionals and increased promotional activity could have weighed on sales and margins. Softer consumer spending in Mexico may also have constrained growth.

Earnings Whispers for SBH

Our proven model doesn’t 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 carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +8.66% and a Zacks Rank of 2. The consensus estimate for quarterly revenues stands at $11.1 billion, which suggests 4.5% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Dollar General’s upcoming quarter’s EPS is pegged at $1.40, which calls for a 9.4% increase from the year-ago period’s figure. DG delivered a trailing four-quarter earnings surprise of 19.1%, on average.

Ulta Beauty, Inc. (ULTA - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at nearly $3 billion, which indicates 4.5% growth from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for Ulta Beauty’s upcoming quarter’s EPS is pegged at $5.60, which calls for almost 9% growth from the figure reported in the prior-year quarter. ULTA delivered a trailing four-quarter earnings surprise of 7.6%, on average.

The Kroger Co. (KR - Free Report) currently has an Earnings ESP of +3.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for KR’s upcoming quarter’s revenues is pegged at $34.6 billion, suggesting a 2.1% jump from the figure reported in the prior-year quarter. 

The consensus estimate for Kroger’s upcoming quarter’s EPS is pegged at $1.16 per share, implying 10.5% growth from the year-ago quarter’s earnings of 36 cents. KR delivered a trailing four-quarter earnings surprise of 2.7%, on average.

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