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Earnings Analysis

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Summary

Sally Beauty Holdings, Inc. is upgraded to Buy as shares retreat to $13, presenting attractive value after strong Q2 results.

SBH delivered a double-line beat: revenue up 2.3% to $903.4M and comps up 1.3%, with notable gross margin expansion to 52.7%.

Balance sheet strength is evident with $157M cash, no revolver borrowings, net debt leverage down to 1.5x, and ongoing buybacks.

FY2026 EPS is guided to $2.06 (8.4% YoY growth), with shares trading at just 6.4x forward earnings.

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Today we return to examine Sally Beauty Holdings, Inc. ( SBH ). We own a house position here and talked about why we rated it a Hold when it was $17. Shares are now

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SBH either through stock ownership, options, or other derivatives.…