Core Viewpoint - Sally Beauty Holdings, Inc. (SBH) is expected to report growth in both revenue and earnings for the first quarter of fiscal 2026, with investors keenly awaiting insights into the company's performance and strategic direction [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for SBH's revenues is $943.9 million, reflecting a 0.6% increase from the same quarter last year [2] - The consensus estimate for earnings remains at 47 cents per share, indicating a 9.3% growth compared to the prior-year quarter [2] Performance Drivers - SBH's first-quarter performance is anticipated to benefit from strong demand in the hair color category, which is resilient across both the consumer-facing Sally Beauty business and the professional-focused Beauty Systems Group [4] - The Zacks Consensus Estimate suggests a 0.6% increase in revenues for Sally Beauty Supply and a 0.5% increase for Beauty Systems Group for the quarter [4] Customer Engagement and Innovation - Sustained momentum in customer engagement initiatives, particularly through digital and service-led offerings, is likely to have positively impacted the quarter [5] - Product innovation, including brand launches and trend-led innovations in professional hair care, has contributed to diversifying demand beyond core color categories [6] Financial Guidance and Profitability - Management has guided consolidated net sales between $935 million and $945 million, with expectations of 40 basis points of foreign exchange benefits [7] - Adjusted operating earnings are projected to be between $75 million and $80 million, supported by gross margin resilience and disciplined cost management [7] Market Conditions - The quarter may have faced challenges due to a cautious consumer environment and potential disruptions related to government shutdowns, which could affect spending behavior [8] - While core color demand is expected to remain stable, softness in discretionary categories may impact overall momentum [8] Earnings Prediction Model - The current model does not predict a definitive earnings beat for SBH, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [11][12]