Sally Beauty(US:SBH)2026-02-09 11:45Financial Performance - Q1 consolidated net sales reached $943 million, an increase of 0.6% year-over-year[6] - Consolidated comparable sales were flat compared to the prior year[5] - Adjusted diluted EPS increased by 12% to $0.48, while GAAP diluted EPS decreased by 22% to $0.45[5][6] - Gross profit increased by 1.3% to $483,259 thousand, up from $476,840 thousand in the previous year[31] - Operating earnings decreased by 24.3% to $75,935 thousand, down from $100,320 thousand in 2024[31] - Net earnings fell by 25.3% to $45,557 thousand, compared to $61,013 thousand in the same period last year[31] - Basic earnings per share decreased by 21.7% to $0.47, down from $0.60 in 2024[31] Cash Flow and Debt Management - Cash flow from operations was $93 million, with free cash flow totaling $57 million[8][11] - The company repaid $20 million of term loan B debt and repurchased 1.4 million shares for $21 million during the quarter[8][11] Guidance and Projections - The company raised the low end of its fiscal 2026 EPS guidance to $2.02 to $2.10[5][10] - For Q2 FY26, consolidated net sales are projected to be between $895 million and $905 million, with adjusted diluted EPS guidance of $0.39 to $0.42[10] Inventory and Assets - Inventory as of December 31, 2025, was $979 million, down 2.7% from the previous year[7] - Total current assets decreased to $1,285,685 thousand from $1,301,453 thousand, a decline of 1.2%[33] Liabilities and Store Count - Total liabilities decreased to $2,027,213 thousand from $2,076,889 thousand, a reduction of 2.4%[33] - The number of consolidated stores decreased to 4,415 from 4,453, a decline of 38 stores[43] Sales Performance by Segment - Global e-commerce sales amounted to $111 million, representing 11.7% of total net sales[6] - Comparable sales growth for Sally was 0.1%, while BSG experienced a decline of 0.2%[44] - Adjusted EBITDA for the three months ended December 31, 2025, was $111,042 thousand, a slight increase of 0.8% from $110,167 thousand in 2024[41]