Sally Beauty Holdings' stock plummeted 5.03% during intraday trading on Monday, reversing an earlier pre-market gain. The sharp decline followed the company's release of its second-quarter fiscal 2026 results.
The company reported adjusted earnings per share of $0.44 for Q2, beating the analyst consensus estimate of $0.41. Net sales of $903.4 million also exceeded expectations of $900.8 million. This positive earnings report initially drove the stock up more than 2% in pre-market trading.
However, investor sentiment turned negative as the market focused on the company's outlook for the third quarter. Sally Beauty guided for Q3 adjusted EPS in the range of $0.52 to $0.56, which fell short of the analyst consensus estimate of $0.58. The company's Q3 net sales guidance of $932 million to $942 million also missed the consensus expectation of $949.6 million. For the full fiscal year 2026, the company tightened its net sales guidance to a range of $3.73 billion to $3.75 billion, maintaining its adjusted EPS outlook of $2.02 to $2.10.