SBH

Sally Beauty Holdings (SBH) reported 11% global e-commerce growth in Q3 fiscal 2026, marking four consecutive quarters of double-digit online sales increases. The company's Sally segment saw e-commerce sales rise 20% to $52 million, while its Licensed Colorist On Demand service averaged over 5,200 weekly consultations with 28% new customer growth. Similar digital expansion strategies are being employed by competitors Ulta Beauty and Estée Lauder, reflecting broader retail trends toward omnichannel growth.

Sally Beauty Holdings (SBH) receives a #3 (Hold) rating on the Zacks Rank with a VGM Score of A. The company shows strong growth potential with a Growth Style Score of B and forecasted year-over-year earnings growth of 9% for the current fiscal year. Recent analyst revisions have increased the consensus estimate to $2.07 per share, with an average earnings surprise of +6.4%.

The beauty and cosmetics industry continues to attract investors through changing consumer preferences focused on product performance, ingredient quality, and affordability. Companies are innovating with personalized solutions, sustainable practices, and digital expansion. Three stocks highlighted are e.l.f. Beauty (Strong Buy), The Estee Lauder Companies (Buy), and Ulta Beauty (Hold), each addressing emerging trends through diverse brand portfolios and omnichannel strategies.

Ulta Beauty raised its fiscal 2026 sales, comparable-sales, and earnings guidance following a better-than-expected Q2 with $6.55 EPS (vs. $6.21 consensus) and $3.04B revenue. E-commerce grew at high-teens rate for the sixth consecutive quarter with strong omnichannel execution. However, the company faces tougher H2 comparisons, flat transaction growth, and only modest margin improvement, making execution critical to delivering the upgraded outlook.