Hair products and cosmetics supplier Sally Beauty Holdings' (SBH 1.60%) stock wasn't looking overly pretty on Thursday. The company reported its results for the fiscal fourth quarter of 2025, which topped the consensus analyst estimates. This couldn't keep the stock in positive territory, however, as the shares closed the day down by 1.6% in value.
Single-digit growth in the final quarter
For the quarter ended Sept. 30, Sally Beauty's net sales inched up by slightly over 1% year over year to $947 million. Net income not according to generally accepted accounting principles (GAAP) improved at a higher rate, rising by nearly 8% to land at $56.4 million ($0.55 per share).
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The two key fundamentals were comfortably above the consensus analyst estimates. On average, pundits following Sally Beauty stock were modeling under $933 million on the top line and $0.45 per share for non-GAAP (adjusted) net profit.
In the earnings release, Sally Beauty said that it managed to increase business in both of its operating units, the retail-facing Sally and the professional market-focused Beauty Systems Group.
NYSE: SBH
Key Data Points
New expectations
For its new fiscal year 2026, Sally Beauty proffered current-quarter and full-year guidance for selected line items. The company believes net sales will come in at $3.71 billion to $3.77 billion, which at the low end would be only marginally higher than the $3.7 billion of fiscal 2025. However, the range sits above the average analyst estimate of $3.69 billion.
On the bottom line, Sally Beauty is forecasting adjusted earnings per share of $2 to $2.10, some distance above last year's $1.90. The consensus prognosticator expectation is $1.82.
The company didn't do badly at all in its fourth quarter, but it didn't have blowout results either. Investors, it seemed, were hoping for higher growth rates.
