Company Overview - Sally Beauty Holdings Inc has $3.7 billion in net sales[7] - The company's gross margin is 50.9%[7] - Adjusted EBITDA is $442 million[7] - Approximately 34% of sales are from owned brands[7] - Around 53% of sales are from brands under exclusive/limited distribution agreements[8] Financial Performance & Strategy - Fuel for Growth initiative delivered $28 million benefit in FY24 and is expected to deliver $40+ million benefit in FY25[39] - The company refinanced senior secured notes in February 2024, reducing principal from $680 million to $600 million and extending maturity to FY2032[52] - The company's long-term debt totals $994 million, with $394 million in term loans and $600 million in senior notes[49] - The company aims to increase Sally's owned brand penetration from 34% to over 50%[32]

Industry Overview - The beauty and cosmetics industry has evolved into a multi-billion-dollar global market, driven by changing consumer preferences, cultural influences, and technological advancements [2] - Skincare has become a significant focus, with increased demand for products featuring natural ingredients and dermatologist-approved solutions, influenced by K-beauty and J-beauty trends [3] - Sustainability is shaping the future of the industry, with consumers prioritizing eco-friendly practices and transparency in ingredient sourcing [4] Technological Innovations - Technology is revolutionizing consumer interactions with beauty products through AI diagnostics, augmented reality try-ons, and biotech formulations [5] - The rise of dermocosmetics combines pharmaceutical-grade research with skincare, offering clinically proven results [5] Company Highlights Coty Inc. - Coty is strategically transforming its operations to enhance innovation and consumer-centric growth, focusing on prestige fragrances and skincare [7] - The company is expanding its fragrance offerings and targeting demographics like Gen Z and multicultural consumers, with a strong pipeline for fiscal 2026 [8] - E-commerce now represents nearly 20% of Coty's total sales, supported by partnerships with Amazon and initiatives on platforms like TikTok Shop [9] Ulta Beauty - Ulta Beauty leads the U.S. market through brand curation, digital innovation, and experiential retail, focusing on enhancing core operations and customer experiences [10] - The company is experiencing strong performance across fragrance, skincare, and wellness categories, with notable product launches and a growing interest in K-beauty [11] - Ulta's loyalty program and digital capabilities drive customer engagement, with over 45 million active loyalty members [12] Sally Beauty - Sally Beauty is adapting to market challenges through innovation and digital expansion, focusing on product innovation and omnichannel retail [13] - The company is enhancing its e-commerce presence through partnerships with major delivery services and offering virtual consultations [14] - Product innovation remains central to Sally Beauty's strategy, with new launches and revamped store formats to meet modern beauty trends [15]

Core Insights - Sally Beauty is enhancing its focus on nail innovation, accessibility, and self-expression to attract the next generation of beauty shoppers [2][3] - The company is expanding its nail product assortment to over 1,400 items, including various types of nail products, in response to growing consumer demand [1][3] Product Expansion - The expanded product lineup includes launches from popular brands such as Nailboo, KISS, Dashing Diva, and ASP, with a particular emphasis on gel and press-on nails [4][7] - Sally Beauty is implementing promotional offers during National Nail Week, including a "Buy 2 Get 1 Free" deal on select gel nails [6] Consumer Engagement - The retailer is leveraging expert-driven content to engage consumers, featuring tips and trends from its nail expert across digital channels [6] - Sally Beauty is enhancing the shopping experience with options like Buy Online, Pick Up In-Store, and two-hour delivery to meet consumer needs [5] Market Position - The nail category has become a significant entry point for new customers, indicating its growing importance in Sally Beauty's long-term strategy [3][4] - Sally Beauty Holdings, Inc. is recognized as a leader in professional beauty supplies, offering a wide range of products through its various brands [8]

Group 1 - The core focus of Quad 7 Capital is to provide investment opportunities through their BAD BEAT Investing platform, emphasizing both long and short trades with a proven track record of success [1] - The team consists of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, allowing for comprehensive market analysis [1] - Since May 2020, the company has maintained an average position of 95% long and 5% short, showcasing their strategic investment approach [1] Group 2 - BAD BEAT Investing offers various benefits, including weekly well-researched trade ideas, access to multiple chat rooms, and daily summaries of key analyst upgrades and downgrades [2] - The platform also provides educational resources for learning basic options trading and extensive trading tools to enhance investor proficiency [2] - The goal of BAD BEAT Investing is to save time for investors by delivering high-quality research with clear entry and exit targets [1][2]

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, highlighting decreases in assets and liabilities, alongside increased net earnings and diluted EPS for the quarter [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $2.71 billion, total liabilities to $2.01 billion, while stockholders' equity increased to $699.8 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (Unaudited) | September 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,239,113 | $1,305,314 | | Inventory | $1,006,604 | $1,036,624 | | **Total assets** | **$2,705,873** | **$2,792,899** | | **Total current liabilities** | $533,291 | $592,669 | | Long-term debt | $902,794 | $978,255 | | **Total liabilities** | **$2,006,057** | **$2,164,364** | | **Total stockholders' equity** | **$699,816** | **$628,535** | [Condensed Consolidated Statements of Earnings](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Net sales decreased by 2.8% for the quarter, yet operating earnings rose 16.4% and net earnings increased 34.1% Key Earnings Data (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $883,146 | $908,361 | (2.8)% | | Gross profit | $458,817 | $463,072 | (0.9)% | | Operating earnings | $69,373 | $59,574 | 16.4% | | Net earnings | $39,210 | $29,244 | 34.1% | | Diluted EPS | $0.38 | $0.27 | 40.7% | | **Metric** | **Six Months Ended Mar 31, 2025** | **Six Months Ended Mar 31, 2024** | **Change (%)** | | Net sales | $1,821,041 | $1,839,663 | (1.0)% | | Net earnings | $100,223 | $67,634 | 48.2% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow slightly decreased, investing activities turned positive due to asset sale, and financing cash use increased Six-Month Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $84,521 | $87,960 | | Net cash provided (used) by investing activities | $4,232 | $(44,877) | | Net cash used by financing activities | $(103,659) | $(68,932) | | **Net decrease in cash and cash equivalents** | **$(15,787)** | **$(25,827)** | - Investing activities were positively impacted by **$43.6 million** in proceeds from the sale of property and equipment, which included the company's corporate headquarters[22](index=22&type=chunk)[39](index=39&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) Notes detail accounting policies, debt, and segment performance, highlighting a **$26.6 million** gain from asset sale, debt repayments, and ABL facility extension - In the six months ended March 31, 2025, the company sold its corporate headquarters for **$45.5 million**, recognizing a gain of approximately **$26.6 million**[39](index=39&type=chunk) - During the six months ended March 31, 2025, the company voluntarily repaid **$75.0 million** of its outstanding Term Loan B principal (**$40.0 million** in Q1 and **$35.0 million** in Q2)[45](index=45&type=chunk) - For the six months ended March 31, 2025, the company repurchased **1.8 million shares** of its common stock for a total cost of **$20.0 million**[36](index=36&type=chunk) Segment Net Sales (in thousands) | Segment | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | SBS | $500,575 | $513,241 | $1,026,021 | $1,036,479 | | BSG | $382,571 | $395,120 | $795,020 | $803,184 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 2.8% sales decrease, 100 basis point gross margin improvement, 16.4% operating earnings increase, and strong liquidity - Consolidated comparable sales decreased by **1.3%** for the three months ended March 31, 2025[59](index=59&type=chunk) - Consolidated gross margin increased by **100 basis points** to **52.0%** for the quarter, driven by lower distribution/freight costs and enhanced promotional strategies[59](index=59&type=chunk)[65](index=65&type=chunk) - Unallocated selling, general and administrative expenses for the six-month period decreased by **$31.5 million**, primarily due to a **$26.6 million** gain on the sale of the corporate headquarters[80](index=80&type=chunk) - At March 31, 2025, the company had **$574.9 million** of available liquidity, comprising **$92.2 million** in cash and **$482.7 million** available under its ABL facility[83](index=83&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Both SBS and BSG segments experienced sales declines but improved gross margins, while unallocated corporate expenses decreased, boosting operating earnings Q2 2025 vs Q2 2024 Segment Performance | Segment | Net Sales Change | Comparable Sales Change | Gross Margin Change | | :--- | :--- | :--- | :--- | | SBS | (2.5)% | (0.3)% | +130 bps | | BSG | (3.2)% | (2.7)% | +40 bps | - The decrease in SBS net sales was driven by negative foreign currency exchange impact of **$7.8 million** and net store closures, with comparable sales slightly down by **0.3%**[62](index=62&type=chunk)[63](index=63&type=chunk) - The decrease in BSG net sales was primarily due to a **2.7%** decline in comparable sales, reflecting external factors impacting stylist purchasing behavior[63](index=63&type=chunk)[64](index=64&type=chunk) - Unallocated corporate expenses decreased by **$8.3 million** (**13.8%**) in Q2 2025, driven by lower professional fees and savings from the 'Fuel for Growth' initiative[68](index=68&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains **$574.9 million** in liquidity, with working capital slightly down, and has repaid debt and repurchased shares - Total outstanding debt principal was **$917.0 million** at March 31, 2025, consisting of **$600.0 million** in Senior Notes and **$317.0 million** on the Term Loan B[90](index=90&type=chunk) - In December 2024, the ABL facility was amended, extending the maturity date to **December 11, 2029**[44](index=44&type=chunk) - During the six months ended March 31, 2025, the company repurchased **1.1 million shares** for **$10.0 million** under its share repurchase program[95](index=95&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is subject to market risks, with no material changes reported since the prior fiscal year's 10-K filing - There have been no material changes to the company's market risks since the fiscal year ended September 30, 2024[100](index=100&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal controls - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures are effective at a reasonable assurance level[105](index=105&type=chunk) - There were no changes in internal control over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[106](index=106&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, not expected to materially impact its financial position or operations - The company does not expect ongoing legal proceedings to have a material adverse impact on its consolidated financial position, cash flows, or results of operations[108](index=108&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the company's risk factors since the prior fiscal year's 10-K filing - No material changes have occurred to the risk factors disclosed in the company's most recent Annual Report on Form 10-K[110](index=110&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company repurchased **1.1 million shares** for **$10.0 million**, with **$500.8 million** remaining under the program extended to September 2025 Issuer Purchases of Equity Securities (Quarter Ended March 31, 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Value of Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31, 2025 | — | $ — | $510,792,456 | | Feb 1 - Feb 28, 2025 | 426,613 | $9.32 | $506,816,515 | | Mar 1 - Mar 31, 2025 | 661,549 | $9.11 | $500,792,460 | | **Total this quarter** | **1,088,162** | **$9.19** | **$500,792,460** | - The share repurchase program, authorizing up to **$1.0 billion** in repurchases, was extended to **September 30, 2025**[36](index=36&type=chunk)[113](index=113&type=chunk) [Item 5. Other Information](index=28&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated any Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter[112](index=112&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report, including corporate documents, certifications, and financial statements

Core Viewpoint - Sally Beauty Holdings, Inc. reported mixed results for Q2 of fiscal 2025, with earnings exceeding estimates but revenues declining due to macroeconomic challenges, prompting management to lower its full-year outlook [1][15]. Financial Performance - Adjusted earnings were 42 cents per share, surpassing the Zacks Consensus Estimate of 39 cents, and increased from 35 cents in the prior year [2]. - Consolidated net sales totaled $883.1 million, missing the consensus estimate of $901.1 million, and fell 2.8% year over year [2]. - Consolidated gross profit was $458.8 million, down 0.9% from $463.1 million in the prior year, while gross margin improved to 52%, up 100 basis points [5]. - Adjusted operating earnings rose to $75.2 million from $68.6 million in the previous year, with an adjusted operating margin expanding to 8.5% from 7.6% [7]. Sales Insights - Consolidated comparable sales declined 1.3%, influenced by external factors such as weather and macroeconomic uncertainty, although hair color products and digital marketplace growth provided some offset [3]. - Sally Beauty Supply segment net sales decreased 2.5% year over year to $500.6 million, while Beauty Systems Group net sales fell 3.2% to $382.6 million [8][9]. Cost Management - Adjusted SG&A expenses totaled $383.7 million, reflecting a $10.8 million decrease year over year, maintaining a flat percentage of sales at 43.4% [6]. - Adjusted EBITDA was $104.8 million, representing a 5.3% increase from the previous year, with an adjusted EBITDA margin of 11.9%, up 90 basis points [7]. Financial Health - The company ended the quarter with cash and cash equivalents of $92.2 million, long-term debt of $902.8 million, and total stockholders' equity of $699.8 million [11]. - Cash flow from operations was $51 million, with operating free cash flow at $32 million [11]. Future Outlook - For fiscal 2025, comparable sales are projected to range from flat to a 1% decline, with consolidated net sales expected to be nearly 75 basis points lower than comparable sales due to foreign exchange impacts [16]. - The adjusted operating margin is anticipated to be between 8% and 8.5% for fiscal 2025, revised down from earlier expectations [16].

Core Insights - Sally Beauty reported revenue of $883.15 million for the quarter ended March 2025, reflecting a year-over-year decline of 2.8% and an EPS of $0.42, up from $0.35 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $901.1 million, resulting in a surprise of -1.99%, while the EPS exceeded the consensus estimate of $0.39 by 7.69% [1] Financial Performance Metrics - Comparable sales growth for Sally Beauty Supply was -0.3%, compared to the average estimate of 0.1% from three analysts [4] - Comparable sales growth for Beauty Systems Group was -2.7%, against the average estimate of -0.4% [4] - Consolidated comparable sales growth was -1.3%, compared to the average estimate of -0.1% [4] Store Metrics - The total number of stores at the end of the period was 4,446, slightly below the average estimate of 4,450 [4] - The number of stores for Sally Beauty Supply was 3,117, compared to the estimated 3,121 [4] - The Beauty Systems Group had 1,329 stores, matching the average estimate [4] Sales and Operating Income - Net sales for Sally Beauty Supply were $500.58 million, below the average estimate of $507.67 million, representing a year-over-year decline of 2.5% [4] - Net sales for Beauty Systems Group were $382.57 million, compared to the average estimate of $392.35 million, reflecting a year-over-year decline of 3.2% [4] - Operating income for Beauty Systems Group was $43.93 million, below the average estimate of $49.88 million [4] - Operating income for Sally Beauty Supply was $77.31 million, compared to the average estimate of $83.74 million [4] Stock Performance - Over the past month, shares of Sally Beauty have returned -3.8%, while the Zacks S&P 500 composite has changed by +3.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported a 10% increase in adjusted operating earnings and a 20% growth in adjusted earnings per share year-over-year despite a challenging external environment [5][21] - Consolidated net sales decreased by 2.8% to $883 million, with a comparable sales decline of 1.3% [21][22] - Adjusted operating margin expanded by 90 basis points to 8.5%, and adjusted EBITDA margin increased by 90 basis points to 11.9% [26][30] Business Line Data and Key Metrics Changes - In the Sally Beauty segment, net sales decreased by 2.5% to $500 million, with comparable sales roughly flat at -0.3% [27] - The BSG segment saw net sales decrease by 3.2% to $383 million, with comparable sales down 2.7% [29] - E-commerce sales for Sally increased by 21% year-over-year, while BSG's e-commerce sales represented 14% of segment net sales [27][29] Market Data and Key Metrics Changes - The company experienced a decline in purchasing behavior due to economic uncertainty and an unusually harsh flu season impacting both consumer and stylist segments [6][21] - E-commerce sales at constant currency were $94 million, up 6% year-over-year, representing 11% of total net sales [22] Company Strategy and Development Direction - The company is focused on enhancing customer centricity, growing high-margin owned brands, and increasing operational efficiency [9][19] - Strategic initiatives include digital marketplaces, licensed Colorist on Demand, product innovation, and a brand refresh for Sally [9][16] - The company is also expanding its Happy Beauty initiative, focusing on indie brands and key trends like Korean beauty [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the latter part of Q2 reflected a more challenging external environment than anticipated, impacting consumer sentiment and spending [5][6] - The company expects sales trends to improve in the second half of the year, despite ongoing macroeconomic uncertainties [8][19] - Guidance for fiscal 2025 was adjusted to reflect a range of flat to down 1% for comparable sales, with net sales expected to be approximately 75 basis points lower than previously anticipated [33][34] Other Important Information - The company generated strong cash flow from operations of $51 million and maintained a healthy balance sheet with $92 million in cash [30][31] - A four-year extension to the share repurchase program was announced, with approximately $500 million remaining under the original authorization [32] Q&A Session Summary Question: Comparison of Sally division to BSG and e-commerce forecast - Management noted that both segments experienced lighter sales, but strategic initiatives contributed positively to comp sales [37][39] - E-commerce momentum is expected to continue with the expansion of marketplace strategies [42] Question: Store refresh performance and Happy Beauty growth - Initial results from the store refresh have been positive, with increased customer engagement noted [45] - Happy Beauty stores are performing well, and management is optimistic about future expansion [46] Question: Impact of tariff changes on consumer behavior - Management expressed hope that recent tariff news would reduce consumer uncertainty, but noted that consumer behavior remains to be seen [49][50] Question: Guidance change and segment trends - The guidance reflects current business trends, with BSG expected to recover while Sally's care business may remain softer [55][56] Question: Current promotional environment - Management feels confident in their strategy and is closely monitoring consumer sentiment for any necessary tactical adjustments [78] Question: Innovation driving traffic and conversion - Trends in glossing and press-on nails are driving traffic, with strong performance from various brands supporting these trends [82]

Financial Data and Key Metrics Changes - The company reported a 10% increase in adjusted operating earnings and a 20% growth in adjusted earnings per share year-over-year despite a challenging external environment [4] - Consolidated net sales decreased by 2.8% to $883 million, impacted by a 110 basis point unfavorable foreign currency effect [20] - Adjusted operating margin increased by 90 basis points to 8.5%, while adjusted EBITDA margin also rose by 90 basis points to 11.9% [24] Business Line Data and Key Metrics Changes - In the Sally Beauty segment, net sales decreased by 2.5% to $500 million, with comparable sales roughly flat at -0.3% [25] - The BSG segment saw net sales decrease by 3.2% to $383 million, with comparable sales down 2.7% [27] - E-commerce sales for Sally increased by 21% year-over-year to $41 million, representing 8% of segment net sales [25] Market Data and Key Metrics Changes - E-commerce sales globally were $94 million, up 6% year-over-year, accounting for 11% of total net sales [21] - The company experienced a decline in comparable sales due to external factors such as a harsh flu season and macroeconomic uncertainty [20][27] Company Strategy and Development Direction - The company is focused on enhancing customer centricity, growing high-margin owned brands, and increasing operational efficiency [9] - Strategic initiatives include digital marketplaces, licensed Colorist on Demand, and product innovation, which contributed to a 225 basis point comp sales growth before macro pressures [14] - The company is rolling out a brand refresh to modernize its image and attract new customer segments [15] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer sentiment and spending were impacted by economic uncertainty, particularly in the latter part of Q2 [5] - The company anticipates improving sales trends in the BSG segment as the flu season subsides [7] - Guidance for Q3 and full-year outlook reflects expectations of flat to down 1% comparable sales, with adjusted operating margin projected between 8% to 8.5% [31] Other Important Information - The company has a strong balance sheet with $92 million in cash and no outstanding borrowings [28] - A four-year extension to the share repurchase program was announced, with approximately $500 million remaining under the original authorization [30] Q&A Session Summary Question: Comparison of Sally division to BSG and e-commerce forecast - Management noted that both segments experienced lighter sales, but strategic initiatives contributed positively to comp sales growth [34][36] Question: Store refresh performance and Happy Beauty initiative - Initial results from the store refresh have been positive, with increased customer engagement noted [42] Question: Impact of tariff changes on consumer behavior - Management expressed hope that recent tariff news would reduce consumer uncertainty and improve spending habits [46] Question: Guidance change and segment performance outlook - The guidance reflects current trends, with expectations of recovery in the BSG segment and continued strength in color sales for Sally [52][54] Question: Current promotional environment and consumer sentiment - Management feels confident in their strategy but is closely monitoring consumer behavior for potential adjustments [76]

Core Insights - Sally Beauty reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and showing an increase from $0.35 per share a year ago, resulting in an earnings surprise of 7.69% [1] - The company posted revenues of $883.15 million for the quarter ended March 2025, which was 1.99% below the Zacks Consensus Estimate and a decrease from $908.36 million in the same quarter last year [2] - Over the last four quarters, Sally Beauty has surpassed consensus EPS estimates three times but has only topped revenue estimates once [2] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $941.48 million, and for the current fiscal year, it is $1.83 on revenues of $3.72 billion [7] - The estimate revisions trend for Sally Beauty is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Retail - Miscellaneous industry, to which Sally Beauty belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another competitor in the same industry, Ulta Beauty, is expected to report quarterly earnings of $5.73 per share, reflecting a year-over-year decline of 11.4%, with revenues projected at $2.79 billion, up 2.2% from the previous year [9][10]