Sally Beauty Holdings, Inc. has reported its first-quarter fiscal 2026 results, showcasing a positive start to the year. The company's consolidated net sales for the first quarter increased by 0.6% compared to the prior year, reaching $943 million.
The company's global e-commerce sales totaled $111 million, representing 11.7% of net sales. Additionally, the gross margin saw an expansion of 40 basis points to 51.2% on a GAAP basis and 50 basis points to 51.3% on an adjusted basis.
In terms of operating earnings, Sally Beauty Holdings reported GAAP operating earnings of $76 million and an adjusted operating earnings of $80 million, with an 8.1% GAAP operating margin and an 8.5% adjusted operating margin.
The company's cash flow from operations for the first quarter amounted to $93 million, with free cash flow totaling $57 million. During this period, Sally Beauty Holdings utilized its cash flow to repay $20 million of term loan b debt and repurchase 1.4 million shares under its share repurchase program at an aggregate cost of $21 million.
Looking ahead, the company has raised the low end of its fiscal 2026 EPS guidance. For the second quarter, it expects consolidated net sales to range from $895 million to $905 million, with comparable sales projected to increase by 0.5% to 1.5%. Moreover, the full-year guidance for consolidated net sales remains unchanged at $3.71 billion to $3.77 billion, with comparable sales expected to remain flat to up 1%.
Sally Beauty Holdings, Inc. is maintaining its focus on delivering value to shareholders while making strategic investments for growth and balance sheet strength. Following these announcements, the company's shares moved -2.71%, and are now trading at a price of $15.46. If you want to know more, read the company's complete 8-K report here.
