Sally Beauty Holdings, Inc. SBH is likely to witness a year-over-year decline in the top and the bottom line when it reports third-quarter fiscal 2022 earnings on Aug 4. The Zacks Consensus Estimate for quarterly revenues is pegged at $943.6 million, indicating a decrease of 7.7% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has remained unchanged over the past 30 days at 59 cents per share, indicating a decline of 13.2% from the figure reported in the prior-year quarter. The international specialty retailer and distributor of professional beauty supplies has a trailing four-quarter earnings surprise of 8.7%, on average. In the last reported quarter, Sally Beauty delivered a negative earnings surprise of 7.8%.

Sally Beauty Holdings, Inc. Price and EPS Surprise

 

Sally Beauty Holdings, Inc. price-eps-surprise | Sally Beauty Holdings, Inc. Quote

 

Things To Consider

Sally Beauty is battling a tough macro environment, including the impact of inflationary pressures. The company is also challenged by supply chain issues. In its last earnings call, management highlighted that the company generated record sales in third-quarter fiscal 2021, courtesy of reopening momentum across markets. We believe that the persistence of volatile macro conditions coupled with unfavorable year-over-year comparisons might be a concern for Sally Beauty’s performance in the to-be-reported quarter.

Apart from this, Sally Beauty has been grappling with escalated selling, general and administrative expenses for a while. That said, focus on Transformation Plan to improve customers’ experience, augment e-commerce capacities, undertake innovations and enhance retail fundamentals is a breather.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Sally Beauty this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3