Sally Beauty Holdings (SBH) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $935–$935.5 million, up 0.2% year-over-year, with comparable sales flat and results within guidance.

• Adjusted diluted EPS was $0.55, up 8% year-over-year; GAAP diluted EPS increased 25%.

• Cash flow from operations reached $80.9–$81 million, supporting investments, debt repayment, and share repurchases.

• Sally U.S. and Canada drove growth with 3.5% comparable sales increase, while BSG faced softness.

• Operates over 4,300 stores globally, serving both consumer and professional beauty markets with omni-channel capabilities.

Financial highlights

• Gross margin expanded 90 bps to 52.4% (GAAP); adjusted gross margin up 40 bps to 52.4%.

• Adjusted operating income was $87 million; operating margin improved to 9.2%.

• Sally segment net sales grew 2.2% to $538.6–$539 million; BSG segment net sales declined 2.4% to $396.9–$397 million.

• Cash and equivalents at quarter end were $173–$173.1 million; free cash flow was $62 million.

• Net earnings for Q3 were $54.1 million, up 18.3% year-over-year.

Outlook and guidance

• FY26 consolidated net sales expected at $3.725–$3.733 billion, with comparable sales up ~0.5%.

• Adjusted operating earnings forecasted at $329–$335 million; adjusted diluted EPS at $2.04–$2.08.

• Capital expenditures and free cash flow guidance unchanged at ~$100 million and ~$200 million, respectively.

• At least 50% of free cash flow to be allocated to share repurchases.