Why Is SALLY BEAUTY HLDGS I (SBH) Stock Down Today?

Sally Beauty Holdings (SBH) shares fell 4.97% to $19.52, reversing a recent upward trend following the release of fourth quarter financial results. The primary driver of the decline appears to be a cautious outlook for the first quarter, where management guided for adjusted earnings per share of $0.48 to $0.52, below the consensus estimate of $0.53.

What Happened

The company reported fourth quarter adjusted earnings per share of $0.62, beating the estimate of $0.60, with sales of $952.527 million exceeding the projected $950.073 million. Despite the quarterly beat, the stock traded lower as investors focused on the forward guidance. Management guided fiscal 2027 revenue to $3.77 billion to $3.81 billion. Several analysts raised their price targets in response to the earnings call, citing growth steps and a strong beat. Raymond James raised its target to $23 from $18, Canaccord Genuity lifted its target to $25 from $20, and Morgan Stanley increased its target to $19 from $13. Jefferies also raised its price target on the strength of the results.

What The Data Shows

The stock opened at $20.75, a 1.0% gap up from the prior close of $20.54, before sliding to a session low of $19.30 at 9:30 AM ET. Volume stood at 0.1 million shares, which is 0.1 times the three month daily average. The company has a market capitalization of $1.8 billion and a P/E ratio of 10.7. Revenue grew 1.1% over the trailing twelve months, and the net margin is 5.2%. The stock is currently trading within its 52 week range of $11.54 to $21.06. Over the last eight sessions, the stock had moved up 13.2% from $18.15 to $20.54. Notably, the stock printed two fresh 52 week lows on November 11, 2026, prior to this recent rally.

What To Watch

Investors will monitor the company's execution on its fiscal 2027 revenue guidance and the rollout of its new store concepts. The upcoming first quarter results will be a key test of whether the company can meet or exceed the lowered earnings expectations set by management.