SBH to Accelerate Unit Store Expansion
Mimi Noel of Sidoti & Company maintained her "buy" rating on Sally Beauty Holdings Inc (NYSE: SBH), while raising her estimates for the company. The target price is set to $12.
SBH posted its total sales for FQ4 at $676 million, reflecting a 0.6% y/y growth. The sales for the quarter easily exceeded the estimates, Sidoti & Company said. SBH's consolidated same-store sales grew by 2.4% y/y, which was in line with the growth in the recent quarters.
Although Sally Beauty Holdings did not provide sales and EPS guidance, its outlook for capital spending in F2010 indicated an increase in unit store expansion, Sidoti & Company said. According to Sidoti & Company, SBH’s customer relationship management is attracting consumers into its stores and strengthening loyalty. Sidoti & Company has raised the EPS estimates for F2010 and F2011 from $0.64 to $0.67 and from $0.75 to $0.77, respectively.
