Overview

* Sally Beauty ( SBH ) Q3 net sales fall 1% but beat analyst expectations, per LSEG data

* Adjusted EPS rises 13% to $0.51, surpassing analyst estimates, per LSEG data

* Co raises full-year adjusted operating margin guidance

Outlook

* Sally Beauty ( SBH ) raises full-year adjusted operating margin to 8.6%-8.7%

* Company expects full-year comparable sales to be approximately flat

* Sally Beauty ( SBH ) anticipates 75 basis points drop in net sales due to FX impact

Result Drivers

* FUEL FOR GROWTH - Initiative contributed to operating margin expansion and double-digit EPS growth

* MACRO UNCERTAINTY - Consumer spending impacted by macroeconomic uncertainty, partially offset by growth in hair color and digital marketplaces

* COST MANAGEMENT - Higher product margins, lower distribution and freight costs, and reduced shrink expenses supported gross margin expansion

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $933.31 $928.80

mln mln (4

Analysts

)

Q3 Beat $0.51 $0.42 (5

Adjusted Analysts

EPS )

Q3 EPS $0.44

Q3 Net $45.72

earnings mln

Q3 Gross 51.5%

Margin

Q3 -0.4%

Comparab

le Sales

Growth

Q3 $78.17

Operatin mln

g

earnings

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."

* Wall Street's median 12-month price target for Sally Beauty Holdings Inc ( SBH ) is $12.00, about 16.9% above its August 4 closing price of $9.97

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)