Overview
- Sally Beauty reported adjusted Q4 EPS of $0.55, up about 10% year over year, on net sales of $947 million, a 1.3% increase that beat expectations.
- Fourth-quarter operating cash flow was $121 million and free cash flow was $78 million, with $21 million used to repay Term Loan B and $20 million spent to repurchase 1.7 million shares.
- For fiscal 2026 the company guided consolidated net sales to $3.71 billion to $3.77 billion and projected full-year adjusted EPS of $2.00 to $2.10; for Q1 it forecast EPS of $0.43 to $0.47 on sales of $935 million to $945 million.
- The new three-year plan targets 1% to 3% annual sales growth, 3% to 5% adjusted operating earnings growth and more than 10% annual adjusted EPS growth, with roughly half of free cash flow earmarked for buybacks and annual capex of $90 million to $120 million.
- Trading was volatile, with one report showing an intraday gain near 16% and another a 1.6% close decline, as short interest was reported at 19.37 million shares, about 35.7% of the float.