Sally Beauty 2025 Q4 Earnings Beats Expectations with 3.9% Net Income Growth

Sally Beauty (SBH) reported fiscal 2025 Q4 earnings on Nov 14, 2025, exceeding revenue and EPS expectations. The company’s revenue rose 1.3% to $947.08 million, while EPS climbed 8.1% to $0.51, reflecting improved operational efficiency. Guidance for 2026, including $3.71B–$3.77B in sales, aligns with or slightly outpaces analyst estimates, signaling cautious optimism about sustained growth.

Revenue

Sally Beauty’s total revenue increased by 1.3% to $947.08 million in 2025 Q4, up from $935.03 million in the prior-year period. The Sally Beauty Supply segment led with $542 million in revenue, while Beauty Systems Group contributed $406 million. Both segments saw comparable sales growth of 1.2% and 1.4%, respectively, driven by strong performance in color and digital sales.

Earnings/Net Income

Sally Beauty’s EPS rose 8.1% to $0.51 in 2025 Q4 from $0.47 in 2024 Q4, marking continued earnings growth. Net income increased 3.9% to $49.93 million, up from $48.06 million. The 8.1% EPS growth reflects sustained profitability and operational efficiency.

Price Action

The stock price of Sally Beauty edged up 0.21% during the latest trading day, 1.21% for the week, but dropped 4.77% month-to-date.

Post-Earnings Price Action Review

The strategy of buying SBH when revenue beats and holding for 30 days appears promising based on recent performance, positive fiscal 2026 outlook, strategic initiatives like customer activation and digital innovation, and a 100-basis-point gross margin expansion to 52.2%. While historical data on this strategy is limited, the company’s resilience and improved financials suggest potential capital appreciation. Investors should remain mindful of macroeconomic risks and monitor performance closely.

CEO Commentary

CEO David Jackson emphasized the company’s focus on strengthening its salon-centric model, highlighting partnerships with independent salons and digital tools. He acknowledged macroeconomic challenges but expressed confidence in cost management and digital investments.

Guidance

Sally Beauty provided 2025 Q4 results of $947.08 million revenue and $0.51 EPS, with net income of $49.93 million. For 2026, the company expects $3.71B–$3.77B in sales and $2–$2.10 EPS. Strategic priorities include expanding digital capabilities and sustainable product offerings.

Additional News

1. Fuel for Growth Program: Sally Beauty announced a $120 million cumulative cost savings target by 2026, with $74 million in cumulative benefits as of 2025.

2. Sally Ignited Store Refresh: The company launched a brand refresh across 30 stores, enhancing customer engagement and digital integration.

3. Q1 2026 Outlook: Guidance for Q1 sales of $935M–$945M and EPS of $0.43–$0.47 fell short of estimates, reflecting cautious optimism amid macroeconomic headwinds.

Sally Beauty’s 2025 Q4 results underscore its ability to navigate macroeconomic challenges while expanding margins and digital sales. With strategic initiatives and cost-saving targets in place, the company remains positioned for long-term growth, though near-term risks like government shutdown impacts on low-income customers require monitoring.