Overview

• Professional hair color retailer's Q2 net sales grew 2.3%, slightly beating analyst expectations

• Adjusted EPS for Q2 rose 5% and beat analyst expectations

• Company repurchased $25 mln in shares and repaid $20 mln in term loan debt

Outlook

• Sally Beauty sees Q3 net sales of $932 mln to $942 mln

• Company expects Q3 comparable sales to be approximately flat

• Sally Beauty tightens FY26 net sales guidance to $3.725 bln-$3.750 bln

Result Drivers

• E-COMMERCE GROWTH - Global e-commerce sales rose 13% and made up 12% of net sales

• GROSS MARGIN EXPANSION - Gross margin increased 70 basis points to 52.7%

• GROWTH INITIATIVES - Co said results were driven by compounding benefits of growth initiatives

Company press release: ID:nBw3Gc9HHa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales	Slight Beat*	$903 mln	$900.83 mln (4 Analysts)
Q2 Adjusted EPS	Beat	$0.44	$0.41 (5 Analysts)
Q2 EPS		$0.43
Q2 Comparable Sales Growth		1.30%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "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 is $19.00, about 35.4% above its May 8 closing price of $14.03

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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