Sally Beauty (SBH) To Report Earnings Tomorrow: Here Is What To Expect

Beauty supply retailer Sally Beauty (NYSE: SBH) will be reporting earnings tomorrow before market hours. Here’s what to look for.

Sally Beauty met analysts’ revenue expectations last quarter, reporting revenues of $937.9 million, flat year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ gross margin estimates but revenue guidance for next quarter meeting analysts’ expectations.

Is Sally Beauty a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Sally Beauty’s revenue to be flat year on year at $901.1 million, in line with the 1.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.39 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sally Beauty has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Sally Beauty’s peers in the specialty retail segment, only Warby Parker has reported results so far. It missed analysts’ revenue estimates by 0.8%, delivering year-on-year sales growth of 11.9%. The stock was down 2.2% on the results.

There has been positive sentiment among investors in the specialty retail segment, with share prices up 6% on average over the last month. Sally Beauty is down 2% during the same time and is heading into earnings with an average analyst price target of $13.20 (compared to the current share price of $8.29).

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