Abstract

Sally Beauty will report its quarterly results on February 09, 2026 Pre-Market; this preview summarizes consensus expectations, the company’s segment dynamics, and institutional perspectives from January 01, 2026 to February 02, 2026.

Market Forecast

For the to-be-reported quarter, Sally Beauty’s internal forecast framework indicates total revenue of $939.83 million, implying a year-over-year change of -0.42%, EBIT of $78.38 million with an estimated year-over-year change of -0.77%, and adjusted EPS of $0.46 with an estimated year-over-year growth of 7.09%. Margin expectations point to relatively stable gross profitability, with management tracking gross profit margin and net profit margin on a steady path; year-over-year comparisons are modestly mixed across EBIT and EPS, with EPS buoyed by operational efficiency and buybacks. The company’s main business continues to be Sally Beauty Supply and Beauty Systems Group. In the last quarter, Sally Beauty Supply contributed $2.09 billion and Beauty Systems Group contributed $1.61 billion on a trailing basis; management is focused on maintaining category momentum while refining store productivity and digital engagement. Beauty Systems Group appears the most promising segment due to distribution expansion and brand innovation; recent commentary highlighted momentum at Beauty Systems Group, supported by professional channel demand and new product introductions, which is expected to support revenue resilience and modest year-over-year growth.

Last Quarter Review

In the previous quarter, Sally Beauty delivered revenue of $947.08 million, a gross profit margin of 52.17%, GAAP net profit attributable to the parent company of $49.93 million with a quarter-on-quarter change of 9.20%, a net profit margin of 5.27%, and adjusted EPS of $0.55, reflecting year-over-year growth of 10.00%. A key highlight was better-than-expected operating performance, with actual EBIT of $88.62 million exceeding the prior estimate by $8.27 million and top-line coming in $14.19 million above expectations. Segment-wise, Sally Beauty Supply and Beauty Systems Group remain the core revenue engines; Beauty Systems Group sustained momentum via expanded distribution and brand innovation, while Sally Beauty Supply managed through softer traffic with targeted promotions and e-commerce growth supporting mix.

Current Quarter Outlook

Main Business: Sally Beauty Supply and Companywide Core Categories

The company’s core retail and professional distribution businesses are poised to navigate mixed consumer spending trends with an emphasis on hair color, hair care, textured hair, and beauty tools. Store productivity initiatives, including targeted promotions and inventory discipline, are aimed at sustaining margins without materially sacrificing traffic. E-commerce and omnichannel integration continue to support conversion and average order value, helping to balance seasonal volatility and regional softness. Management’s recent operational cadence suggests gross margin stability around the low-50% range, aided by pricing discipline, private-label mix, and freight normalization. Net profit margin performance near mid-single digits is consistent with cost controls and SG&A efficiency, setting a foundation for EPS to grow despite slight top-line pressure.

Most Promising Segment: Beauty Systems Group

Beauty Systems Group benefits from its professional-channel focus, distribution expansion, and new brand innovation, which management has previously highlighted as momentum drivers. The segment’s role in introducing innovation to salons and licensed professionals supports a more durable demand profile than general retail, and its brand assortment can capture trade-up behavior even in cautious consumer environments. Execution around exclusive brands and deeper partnerships with suppliers enhances pricing power and protects margins. With the estimated consolidated revenue trend fractionally negative year-over-year this quarter, Beauty Systems Group’s stickier demand and product newness may counterbalance softness in certain retail categories, aiding the overall revenue and EPS outcomes.

Key Stock Price Drivers This Quarter

Investors will likely focus on the balance between revenue stability and margin preservation. Any commentary on gross profit margin around the low-50% band and net margin near the mid-single digits will be interpreted against the forecast EPS growth of 7.09%. E-commerce and digital marketplace traction, including order frequency and mix, could influence perceptions of sustainability in earnings quality. Additionally, store rationalization or footprint optimization and inventory turns will be watched for signals of cash conversion cycle improvements, which matter for valuation arguments around free cash flow resilience. Finally, management guidance for the next quarter and fiscal year—particularly on operating margin, category momentum, and distribution expansion—will shape sentiment on whether EPS can outgrow a flattish or slightly declining revenue base.

Analyst Opinions

Institutional commentary gathered during the period points to a majority leaning positive stance. One noted perspective from TD Cowen reaffirmed a Buy view, citing strong performance and growth potential, with emphasis on the company’s ability to leverage category leadership in hair color and expand through distribution and brand innovation. The bullish case hinges on stable gross margin execution, improving operating efficiency, and EPS growth despite modest top-line pressure, supported by continued momentum in the professional channel and disciplined cost management. Analysts favor the narrative that Beauty Systems Group’s innovation pipeline and Sally Beauty’s omnichannel investment can underpin earnings resilience, which aligns with the forecast for adjusted EPS growth of 7.09% year over year even as consolidated revenue is expected to edge down by 0.42%.