Sally Beauty Holdings (NYSE:SBH) reported fiscal first quarter results that modestly topped Wall Street expectations, with shares rising about 4.5% in early trading on Monday following the release.
The beauty products retailer posted revenue of $943.2 million for the quarter ended December 31, 2025, up 0.6% year over year and slightly above analyst estimates of $940.5 million.
Adjusted earnings per share (EPS) came in at $0.48, compared with consensus expectations of $0.46.
Adjusted EBITDA was $111 million versus estimates of $108.7 million, representing an 11.8% margin.
Operating performance was mixed. Operating margin declined to 8.1% from 10.7% in the same period last year, and consolidated comparable sales were flat. GAAP diluted EPS declined 22% to $0.45, while adjusted diluted EPS increased 12% year over year.
The company generated $93 million in cash flow from operations and $57 million in free cash flow during the quarter, using the proceeds to repay $20 million of term loan debt and repurchase $21 million of shares.
“Our first quarter performance marks a strong start to fiscal 2026,” Sally Beauty CEO Denise Paulonis said in a statement. “We achieved top line results that met our expectations, maintained healthy gross margins and delivered adjusted EPS growth of 12% - consistent with our long-term financial algorithm.”
The company reaffirmed its full-year fiscal 2026 revenue guidance of roughly $3.74 billion at the midpoint and slightly raised its adjusted EPS outlook, increasing the low end of the range to $2.02 and maintaining the high end at $2.10.
For the second quarter, the company forecast net sales of $895 million to $905 million and adjusted EPS of $0.39 to $0.42.