Will Sally Beauty Reach 80 Ignited Stores With Momentum Intact?

Sally Beauty Holdings, Inc. SBH continues to see meaningful room to expand its Sally Ignited initiative as it moves ahead with additional store refreshes. As of the end of July, the company had completed 33 store refreshes year to date, while another 17 are planned for the fourth quarter of fiscal 2026, keeping the rollout on track with management’s full-year plan.

The Sally Ignited remodel program continues to progress in line with management’s plan, with the company on track to complete 50 remodels in fiscal 2026. This would bring the total number of Ignited locations to 80 by the end of September. Early customer response remains highly encouraging, with key performance indicators continuing to improve. Traffic, dwell times, units per transaction (UPT) and average transaction value (ATV) are all trending higher, while sales growth at Ignited stores is outperforming the broader fleet.

Nails and fragrance continue to stand out as strong-performing categories, while Sally Beauty is already planning the next phase of its Ignited rollout. Ignited stores also continue to serve as learning tools across categories, with insights from nails, fragrance and men’s being applied across the broader fleet, while the company prepares to test a new skin line. Fragrance has been a notable area of expansion, moving from initial testing in Ignited stores to 1,000 stores and now 2,000 stores.

Overall, the Ignited rollout is showing encouraging customer and sales trends, while learnings from refreshed stores are helping Sally Beauty identify opportunities for broader rollout across the fleet. Management plans to provide more detail next quarter on its fiscal 2027 rollout strategy and believes the program can continue expanding in fiscal 2027 and beyond.

The Zacks Rundown for SBH

Shares of this Zacks Rank #3 (Hold) company have gained 5.2% in the past six months against the industry’s 21.1% decline.

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From a valuation standpoint, SBH trades at a forward price-to-earnings ratio of 7.27, lower than the industry’s average of 15.23.

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The Zacks Consensus Estimate for SBH’s current and next fiscal year earnings implies a year-over-year rise of approximately 9% each.

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Stocks to Consider

Some better-ranked stocks have been discussed below:

Five Below, Inc. FIVE operates as a specialty value retailer in the United States. Five Below currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 15.4% and 37.8%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.

Fossil Group, Inc. FOSL designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.

The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the same for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average.

Seven & i Holdings Co., Ltd. SVNDY operates convenience stores in Japan, North America, and internationally. At present, SVNDY carries a Zacks Rank of 2.

The Zacks Consensus Estimate for SVNDY’s current fiscal-year sales indicates a 5.9% decline, while the same for earnings indicates 29.7% growth from the year-ago figures.

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