Sally Beauty Beats Estimates as Q4 EPS Climbs 13 Percent

Sally Beauty posted adjusted diluted earnings of 62 cents per share in the fourth quarter, beating Wall Street estimates of 60 cents and rising 13 percent year over year.

The Dallas-based retailer reported the results for the final quarter of fiscal 2026, ended Sept. 30. Net sales rose 0.6 percent to $953 million, a touch above analysts' estimates. Comparable sales grew 0.9 percent.

Global e-commerce delivered the fastest growth in the portfolio. Online sales increased 8 percent to $113 million, representing 12 percent of net sales.

For the full fiscal year, net sales came in at $3.73 billion, up 0.9 percent from the prior year.

What did the CEO say about the quarter?

Denise Paulonis, president and chief executive officer, tied the results to a strategic overhaul at the namesake banner.

"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," Paulonis said.

How is the consumer behaving?

Paulonis described a shopper who is price sensitive but still loyal to preferred brands.

"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," she said.

She positioned Sally Beauty as structurally suited to that behavior. "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."

The quarter in numbers

• Net sales: $953 million, up 0.6 percent year over year
• Comparable sales: up 0.9 percent
• E-commerce: $113 million, up 8 percent, or 12 percent of net sales
• Adjusted diluted EPS: 62 cents, up 13 percent, versus the 60-cent consensus
• Full-year net sales: $3.73 billion, up 0.9 percent

What comes next?

The beat arrives as the retailer heads into the holiday season, with management pointing to the Sally repositioning as proof the specialty-retailer strategy is gaining traction. Sustained e-commerce growth — now 12 percent of sales — will test whether the momentum extends beyond the fourth quarter.