Sally Beauty Holdings (SBH) Q4 2026 earnings summary

Executive summary

• FY26 net sales were $3,734.6M, up 0.9%; adjusted diluted EPS rose 9% to $2.08, and operating cash flow was $322.6M.

• Q4 net sales increased 0.6% to $953M, comparable sales rose 0.9%, and adjusted diluted EPS grew 13% to $0.62.

• More than 4,300 stores globally; FY27 priorities include scaling growth platforms, customer engagement, digital capabilities, and profitable growth.

Financial highlights

• Q4 adjusted operating earnings rose 7.0% to $95M; adjusted SG&A fell $5M YoY to $400M.

• FY26 adjusted EBITDA was $458.7M, up 2.5%; GAAP net earnings were $200.1M and adjusted net earnings were $205.9M.

• Global e-commerce sales grew 8% to $113M in Q4 and 10% to $441M for FY26; each represented 12% of sales.

• FY26 adjusted gross margin was 52.1%, up 40 bps; adjusted SG&A was $1.61B, up $25M YoY.

Outlook and guidance

• FY27 sales guidance is $3.77B–$3.81B, with comparable sales growth expected at 1.2%; adjusted operating earnings guidance is $334M–$347M and adjusted diluted EPS is $2.20–$2.30.

• FY27 free cash flow is expected at ~$200M and capital expenditures at ~$140M; 50% of free cash flow is planned for share repurchases.

• Q1 FY27 sales guidance is $945M–$955M, comparable sales growth is 0.5%–1.5%, adjusted operating earnings are $75M–$80M, and adjusted diluted EPS is $0.48–$0.52.

• Three-year algorithm targets 1%–3% sales growth, a 50%+ gross margin profile, 3%–5% adjusted operating earnings growth, and 10%+ EPS growth.

• Outlook assumes a resilient consumer and inflation in labor, rent, and transportation; BSG is expected to return to growth, with Sally growing somewhat faster.