Sally Beauty’s Q1 earnings meet expectations, shares surge over 4%

Published 13/02/2025, 13:18
Sally Beauty’s Q1 earnings meet expectations, shares surge over 4%

NEW YORK -On Thursday, Sally Beauty (NYSE:SBH) Holdings, Inc. (NYSE: SBH) reported fiscal first quarter earnings that met analyst expectations, while revenue came in slightly below estimates.

The beauty products retailer’s stock surged 4.58% following the release, as investors appeared to focus on the company’s reiterated full-year guidance.

For the quarter ended December 31, Sally Beauty posted adjusted earnings per share of $0.43, in line with the analyst consensus. Revenue rose 0.7% year-over-year to $937.9 million, just shy of the $943.33 million analysts were expecting.

Comparable sales increased 1.6% in Q1, driven by 1.7% growth at Sally Beauty Supply and 1.4% growth at Beauty Systems Group. The company noted strong performance in hair color and digital marketplaces.

"We are pleased to start fiscal 2025 with solid first quarter results, reflecting continued momentum across both our Sally Beauty and Beauty Systems Group segments," said Denise Paulonis, president and CEO.

Sally Beauty reiterated its full-year guidance for comparable sales growth of flat to up 2% and adjusted operating margin of 8.5% to 9.0%. However, the company now expects consolidated net sales to be approximately 100 basis points lower than comparable sales due to foreign exchange headwinds.

For Q2, Sally Beauty projects flat comparable sales and adjusted operating margin of 8.0% to 8.3%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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