Sally Beauty Set to Announce FQ1 Earnings on February 9th
- Earnings Announcement: Sally Beauty (SBH) is set to announce its FQ1 earnings on February 9th before market open, with consensus EPS estimate at $0.46 and revenue at $940.15 million, which could positively impact stock performance if achieved.
- Performance Expectations: Over the past two years, SBH has exceeded EPS estimates 75% of the time and revenue estimates 50% of the time, indicating a strong track record of profitability and market confidence.
- Revision Trends: In the last three months, EPS estimates have seen no upward revisions but four downward adjustments, while revenue estimates also faced three downward revisions, suggesting a cautious market outlook on the company's future performance.
- Cost Savings Target: Sally Beauty aims for $120 million in cumulative cost savings by 2026 while launching the Sally Ignited store refresh initiative, designed to enhance customer experience and drive sales growth.
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- Earnings Announcement: Sally Beauty (SBH) is set to announce its FQ1 earnings on February 9th before market open, with consensus EPS estimate at $0.46 and revenue at $940.15 million, which could positively impact stock performance if achieved.
- Performance Expectations: Over the past two years, SBH has exceeded EPS estimates 75% of the time and revenue estimates 50% of the time, indicating a strong track record of profitability and market confidence.
- Revision Trends: In the last three months, EPS estimates have seen no upward revisions but four downward adjustments, while revenue estimates also faced three downward revisions, suggesting a cautious market outlook on the company's future performance.
- Cost Savings Target: Sally Beauty aims for $120 million in cumulative cost savings by 2026 while launching the Sally Ignited store refresh initiative, designed to enhance customer experience and drive sales growth.
- Retail Stocks on Sale: Retail stocks are currently undervalued, presenting a potential opportunity for investors looking for bargains.
- Investment Opportunity: The decline in retail stock prices may attract bargain hunters seeking to capitalize on lower valuations.
- Product Innovation: Sally Beauty introduces the ion® 24K collection to address the concerns of 40% of U.S. consumers regarding hair damage, utilizing TRICHOPOWER™ SCIENCE technology to reverse damage in just three minutes, significantly enhancing consumer experience.
- Effective Hair Care: The Rapid Recovery Peptide Leave-In Hair Treatment can reverse hair damage in three minutes while maintaining up to 87% of hair's natural foundation, helping consumers save over 60% compared to leading competitors, showcasing a clear price advantage.
- Multi-Functional Products: The Metal & Mineral Neutralizing Spray ensures even color absorption when used as a pre-treatment, while the pH Perfector Purifying Shampoo balances hair pH during cleansing, enhancing hair health and resilience, thus meeting consumer demand for high-performance hair care products.
- Market Expansion: Sally Beauty plans to unveil a new collection of ion® tools in spring 2026, further enriching its product line and promising smoother, shinier hair, reflecting the company's ongoing commitment to meeting modern consumer needs.

- Market Challenges and Opportunities: The beauty, personal care, and household products sector faces slowing global consumption and structural tariff pressures in 2026, yet restructuring initiatives launched in 2025 are expected to yield positive impacts, helping companies navigate market challenges.
- Rating Upgrades: Raymond James analyst Olivia Tong upgraded Ulta Beauty (ULTA) from Outperform to Strong Buy, anticipating outsized growth in 2026, reflecting the company's success in attracting younger consumers and its effective loyalty programs.
- Sally Beauty's Growth Potential: Tong raised Sally Beauty Holdings (SBH) from Market Perform to Outperform, believing that the 'Sally Ignited' store refresh and partnerships with DoorDash and Uber Eats will enhance customer convenience and drive sales growth.
- Price Target Increases: Tong raised Ulta's price target by 31% to $790 and set a $19 target for Sally Beauty, reflecting optimism about both companies' future growth potential, contributing to their stock prices reaching multi-year highs.
Industry Resilience: The U.S. beauty and cosmetics industry remains strong, driven by consumer focus on skincare, hair care, and clean beauty, with digital channels enhancing product discovery and brand loyalty.
Company Highlights: Sally Beauty Holdings and Ulta Beauty are well-positioned in the market, with Sally focusing on professional hair care and Ulta leveraging a broad product assortment and loyalty programs.
Estee Lauder's Strategy: Estee Lauder is emphasizing skincare and innovation, utilizing dermatological science and digital engagement to meet consumer expectations, despite facing near-term challenges.
Coty and Nu Skin Approaches: Coty is restructuring for profitability in fragrance, while Nu Skin combines skincare science with direct selling, focusing on personalized solutions and technology, albeit with higher execution risks.
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Style Scores Explained: The Zacks Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, which assist investors in selecting securities likely to outperform the market over the next 30 days.
Sally Beauty Holdings (SBH) Profile: Sally Beauty Holdings, a leading retailer of professional beauty supplies, holds a Zacks Rank of #2 (Buy) and has a strong Growth Style Score of A, indicating promising earnings growth and making it a favorable option for growth investors.
Investment Recommendations: Zacks experts have identified top stock picks, including one targeting millennial and Gen Z audiences, which has the potential for significant growth, and they encourage investors to consider stocks with strong Zacks Ranks and Style Scores for optimal returns.








