Update shared on20 Sep 2025
Fair value Increased 7.43%Analysts have raised their price target for Sally Beauty Holdings to $14.45, citing management’s optimistic outlook, progress on strategic initiatives, Q3 results that outperformed expectations, and ongoing store and product enhancements.
Analyst Commentary
- Management’s upbeat outlook and continued progress with strategic initiatives including enhanced customer centricity, increased innovation and product “newness,” and improved operational efficiency.
- Positive Q3 results that, while down year-over-year, exceeded consensus expectations; guidance was lowered but still beat forecasts.
- Ongoing store renovations, addition of new brands, and broader distribution gains in the distributor market.
- Potential for growth through the expansion of the new Happy Beauty Co format into additional regions.
- Mixed consumer demand characterized by robust hair color trends but more cautious and price-sensitive behavior among middle-income shoppers.
What's in the News
- Sally Beauty partnered with DoorDash to launch the "Beauty on the Go" pop-up event in New York City, promoting on-demand delivery and featuring exclusive promotions and product giveaways.
- The company repurchased 1,455,864 shares for $13.02 million, bringing total buybacks to 35,034,864 shares (30.61%) for $512.21 million since August 2017.
- Updated 2025 guidance expects comparable sales to be approximately flat, with consolidated net sales about 75 basis points lower due to unfavorable foreign exchange and about 30 fewer stores year-over-year.
- The Board adopted amended and restated bylaws enhancing procedural requirements for stockholder nominations and proposals, clarifying voting rules, and refining meeting conduct and notification procedures.
Valuation Changes
Summary of Valuation Changes for Sally Beauty Holdings
- The Consensus Analyst Price Target has risen from $13.45 to $14.45.
- The Net Profit Margin for Sally Beauty Holdings has risen slightly from 5.52% to 5.74%.
- The Future P/E for Sally Beauty Holdings has risen slightly from 7.82x to 8.05x.
Disclaimer
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