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Sally Beauty Holdings Reports Second Quarter Fiscal 2026 ResultsMay 11, 2026 6:45 AM
Business Wire Q2 Consolidated Net Sales Increased 2.3%; Consolidated Comparable Sales Increased 1.3% Q2 GAAP Diluted EPS Increased 13%; Adjusted Diluted EPS Increased 5% Q2 Cash Flow from Operations of $73 Million Deployed to Invest for Growth, Strengthen Balance Sheet and Return Value to Shareholders Fiscal 2026 Guidance: Company Tightens Net Sales Range and Reiterates All Other Metrics Sally Beauty Holdings, Inc. (NYSE: SBH) (the “Company”), the leader in professional hair color, today announced financial results for its second quarter ended March 31, 2026. The Company will hold a conference call today at 7:30 a.m. Central Time to discuss these results and its business. “Our second quarter results reflect solid execution and the resilience of our operating model amid a dynamic macroeconomic environment,” said Denise Paulonis, president and chief executive officer. “We delivered low-single digit sales growth, gross margin expansion, and strong cash flow from operations, driven by the compounding benefits of our growth initiatives. As we enter the second half of fiscal 2026, we remain confident in our full-year outlook and believe the Company is positioned to deliver consistent, profitable growth and shareholder value over the long-term.” Fiscal 2026 Second Quarter Summary Consolidated net sales of $903 million, an increase of 2.3% compared to the prior year; Consolidated comparable sales growth of 1.3%; Global e-commerce sales increased 13% to $108 million, representing 12% of net sales; GAAP gross margin expansion of 70 basis points to 52.7%; Adjusted Gross Margin expansion of 80 basis points to 52.8%; GAAP selling, general and administrative expenses of $404 million, an increase of $14 million compared to the prior year; Adjusted Selling, General and Administrative Expenses of $404 million, an increase of $20 million compared to the prior year; GAAP operating earnings of $72 million and GAAP operating margin of 8.0%; Adjusted Operating Earnings of $73 million and Adjusted Operating Margin of 8.1%; GAAP diluted net earnings per share of $0.43, an increase of 13% compared to the prior year; Adjusted Diluted Net Earnings Per Share of $0.44, an increase of 5% compared to the prior year; Cash flow from operations of $73 million and Free Cash Flow of $44 million; and Completed $20 million in term loan repayment and $25 million in share repurchases. Balance Sheet and Cash Flow As of March 31, 2026, the Company had cash and cash equivalents of $157 million and no outstanding borrowings under its asset-based revolving line of credit. At fiscal year-end, inventory was $987 million, down 2% versus a year ago. Second quarter cash flow from operations was $73 million and Free Cash Flow totaled $44 million. During the quarter, the Company utilized its cash flow to repay $20 million of term loan B debt and repurchase 1.7 million shares under its share repurchase program at an aggregate cost of $25 million. The Company ended the second quarter with a net debt leverage ratio of 1.5x. Fiscal 2026 Second Quarter Segment Results Sally Beauty Beauty Systems Group (In thousands, except percentages) Q2 FY26 Q2 FY25 Growth/(Decline) Q2 FY26 Q2 FY25 Growth/(Decline) Net Sales $ 521,236 $ 500,575 4.1% $ 382,146 $ 382,571 (0.1)% Comparable Sales Growth/(Decline) 2.5 % (0.3 )% 280 bps (0.3 )% (2.7 )% 240 bps Gross Margin 61.3 % 61.2 % 10 bps 40.9 % 39.8 % 110 bps Operating Earnings $ 78,149 $ 77,305 1.1% $ 47,368 $ 43,934 7.8% Operating Margin 15.0 % 15.4 % (40) bps 12.4 % 11.5 % 90 bps Fiscal Year 2026 Guidance* Third Quarter Consolidated Net Sales $932 million to $942 million (1) Comparable Sales Approximately Flat Adjusted Operating Earnings $83 million to $89 million Adjusted Diluted EPS $0.52 to $0.56 (1) Assumes approximately 40 basis points of favorable impact from expected foreign currency rates Full Year Prior FY26 Guidance Updated FY26 Guidance Consolidated Net Sales $3.71 billion to $3.77 billion $3.725 billion to $3.750 billion (1) Comparable Sales Flat to up 1% No change Adjusted Operating Earnings $328 million to $342 million No change Adjusted Diluted EPS $2.02 to $2.10 (2) No change Capital Expenditures Approximately $100 million No change Free Cash Flow Approximately $200 million No change (1) Assumes approximately 50 basis points of favorable impact from expected foreign currency rates (2) Assumes 50% of Free Cash Flow goes towards share repurchases (Free Cash Flow defined as GAAP cash flows from operating activities less payments for capital expenditures) * The Company does not provide a reconciliation for forward-looking non-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of its reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of the Company’s control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. Conference Call and Where You Can Find Additional Information The Company will hold a conference call and live webcast at approximately 7:30 a.m. Central Time today, May 11, 2026, to discuss its financial results and its business. During the conference call, the Company may discuss and answer one or more questions concerning business and financial matters and trends affecting the Company. The Company’s responses to these questions, as well as other matters discussed during the conference call, may contain or constitute material information that has not been previously disclosed. Participants can listen to the live webcast of the conference call by accessing the investor relations section of the Company’s website at sallybeautyholdings.com/investor-relations/events-and-presentations/events-calendar, or through our third-party host at SBH Q2 Earnings Webcast. To join the conference call, participants can pre-register to receive a dial-in number and unique PIN using the following link: Pre-register SBH Q2 Earnings Call. Pre-registration can be completed at any time up to and following the call start time. A replay will be available on the Company’s investor relations website after 10:00 a.m. Central Time on May 11, 2026, through May 11, 2027. About Sally Beauty Holdings, Inc. Sally Beauty Holdings, Inc. (NYSE: SBH), as the leader in professional hair color, sells and distributes professional beauty supplies globally through its Sally Beauty and Beauty Systems Group segments. Sally Beauty stores offer up to 7,000 products for hair color, hair care, nails, and skin care through proprietary brands such as Ion®, Bondbar®, Strawberry Leopard®, Generic Value Products®, Inspired by Nature® and Silk Elements® as well as professional lines such as Wella®, Clairol®, OPI®, L’Oreal®, Wahl® and Babyliss Pro®. Beauty Systems Group stores, branded as Cosmo Prof® or Armstrong McCall® stores, along with its outside sales consultants, sell up to 8,000 professionally branded products including Paul Mitchell®, Wella®, Matrix®, Schwarzkopf®, Kenra®, Goldwell®, Joico®, Amika® and Moroccanoil®, intended for use in salons and for resale by salons to retail consumers. For more information about Sally Beauty Holdings, Inc., please visit sallybeautyholdings.com/investor-relations. Cautionary Notice Regarding Forward-Looking Statements Statements in this news release and the schedules hereto that are not purely historical facts or that depend upon future events may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of words such as “believes,” “projects,” “expects,” “can,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “will,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters. Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including the “Risk Factors” described under Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and other filings with the U.S. Securities and Exchange Commission. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein. We assume no obligation to publicly update or revise any forward-looking statements. Use of Non-GAAP Financial Measures This news release and the schedules hereto include the following financial measures that have not been calculated in accordance with accounting principles generally accepted in the United States, (“GAAP”), and are therefore referred to as non-GAAP financial measures: (1) Adjusted Gross Margin; (2) Adjusted Selling, General and Administrative Expenses; (3) Adjusted EBITDA and EBITDA Margin; (4) Adjusted Operating Earnings and Operating Margin; (5) Adjusted Net Earnings; (6) Adjusted Diluted Net Earnings Per Share; and (7) Free Cash Flow. We have provided definitions below for these non-GAAP financial measures and have provided tables in the schedules hereto to reconcile these non-GAAP financial measures to the comparable GAAP financial measures. Adjusted Gross Margin – We define the measure Adjusted Gross Margin as GAAP gross margin excluding the costs related to the Company’s fuel for growth initiative for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted Selling, General and Administrative Expenses – We define the measure Adjusted Selling, General and Administrative Expenses as GAAP selling, general and administrative expenses excluding the costs related to the Company’s fuel for growth initiative, expenses related to the Company’s corporate headquarters relocation, and asset impairment charges for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted EBITDA and EBITDA Margin – We define the measure Adjusted EBITDA as GAAP net earnings before depreciation and amortization, interest expense, income taxes, share-based compensation, costs related to the Company’s fuel for growth initiative, expenses related to the Company’s corporate headquarters relocation, and asset impairment charges for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of net sales. Adjusted Operating Earnings and Operating Margin – Adjusted operating earnings are GAAP operating earnings that exclude the costs related to the Company’s fuel for growth initiative, expenses related to the Company’s corporate headquarters relocation, and asset impairment charges for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted Operating Margin is Adjusted Operating Earnings as a percentage of net sales. Adjusted Net Earnings – Adjusted net earnings is GAAP net earnings that exclude the tax-effected costs related to the Company’s fuel for growth initiative, tax-effected expenses related to the Company’s corporate headquarters relocation, and tax-effected asset impairment charges for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted Diluted Net Earnings Per Share – Adjusted diluted net earnings per share is GAAP diluted earnings per share that exclude the tax-effected costs related to the Company’s fuel for growth initiative, tax-effected expenses related to the Company’s corporate headquarters relocation, and tax-effected asset impairment charges for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Free Cash Flow – We define the measure Free Cash Flow as GAAP net cash provided by operating activities less payments for capital expenditures (net). We believe Free Cash Flow is an important liquidity measure that provides useful information to investors about the amount of cash generated from operations after taking into account payments for capital expenditures (net). We believe that these non-GAAP financial measures provide valuable information regarding our earnings and business trends by excluding specific items that we believe are not indicative of the ongoing operating results of our businesses, providing a useful way for investors to make a comparison of our performance over time and against other companies in our industry. We have provided these non-GAAP financial measures as supplemental information to our GAAP financial measures and believe these non-GAAP measures provide investors with additional meaningful financial information regarding our operating performance and cash flows. Our management and Board of Directors also use these non-GAAP measures as supplemental measures to evaluate our businesses and the performance of management, including the determination of performance-based compensation, to make operating and strategic decisions, and to allocate financial resources. We believe that these non-GAAP measures also provide meaningful information for investors and securities analysts to evaluate our historical and prospective financial performance. These non-GAAP measures should not be considered a substitute for or superior to GAAP results. Furthermore, the non-GAAP measures presented by us may not be comparable to similarly titled measures of other companies. Supplemental Schedules Segment Information 1 Non-GAAP Financial Measures Reconciliations 2-3 Non-GAAP Financial Measures Reconciliations; Adjusted EBITDA and Free Cash Flow 4 Store Count and Comparable Sales 5 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (In thousands, except per share data) (Unaudited) Three Months Ended March 31, Six Months Ended March 31, 2026 2025 Percentage Change 2026 2025 Percentage Change Net sales $ 903,382 $ 883,146 2.3 % $ 1,846,550 $ 1,821,041 1.4 % Cost of products sold 427,610 424,329 0.8 % 887,519 885,384 0.2 % Gross profit 475,772 458,817 3.7 % 959,031 935,657 2.5 % Selling, general and administrative expenses 403,841 389,444 3.7 % 811,165 765,964 5.9 % Operating earnings 71,931 69,373 3.7 % 147,866 169,693 (12.9 )% Interest expense 14,165 16,289 (13.0 )% 28,785 33,731 (14.7 )% Earnings before provision for income taxes 57,766 53,084 8.8 % 119,081 135,962 (12.4 )% Provision for income taxes 15,071 13,874 8.6 % 30,829 35,739 (13.7 )% Net earnings $ 42,695 $ 39,210 8.9 % $ 88,252 $ 100,223 (11.9 )% Earnings per share: Basic $ 0.44 $ 0.39 12.8 % $ 0.91 $ 0.98 (7.1 )% Diluted $ 0.43 $ 0.38 13.2 % $ 0.88 $ 0.96 (8.3 )% Weighted average shares: Basic 96,727 101,614 97,271 101,820 Diluted 99,721 104,435 100,265 104,682 Basis Point Change Basis Point Change Comparison as a percentage of net sales Consolidated gross margin 52.7 % 52.0 % 70 51.9 % 51.4 % 50 Selling, general and administrative expenses 44.7 % 44.1 % 60 43.9 % 42.1 % 180 Consolidated operating margin 8.0 % 7.9 % 10 8.0 % 9.3 % (130 ) Effective tax rate 26.1 % 26.1 % — 25.9 % 26.3 % (40 ) SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands) (Unaudited) March 31 September 30 2026 2025 Cash and cash equivalents $ 157,401 $ 149,162 Trade and other accounts receivable 101,632 116,562 Inventory 986,787 987,575 Other current assets 46,940 48,154 Total current assets 1,292,760 1,301,453 Property and equipment, net 285,335 284,284 Operating lease assets 635,406 646,698 Goodwill and other intangible assets 590,436 593,692 Other assets 49,353 44,969 Total assets $ 2,853,290 $ 2,871,096 Current maturities of long-term debt $ 4,000 $ 4,000 Accounts payable 222,635 224,507 Accrued liabilities 169,800 184,641 Current operating lease liabilities 157,050 158,566 Income taxes payable — 4,260 Total current liabilities 553,485 575,974 Long-term debt, including capital leases 823,051 861,974 Long-term operating lease liabilities 531,987 538,426 Other liabilities 21,080 21,026 Deferred income tax liabilities, net 85,815 79,489 Total liabilities 2,015,418 2,076,889 Total stockholders’ equity 837,872 794,207 Total liabilities and stockholders’ equity $ 2,853,290 $ 2,871,096 Supplemental Schedule 1 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Segment Information (In thousands) (Unaudited) Three Months Ended March 31, Six Months Ended March 31, 2026 2025 Percentage Change 2026 2025 Percentage Change Net sales: Sally Beauty Supply ("Sally") $ 521,236 $ 500,575 4.1 % $ 1,052,837 $ 1,026,021 2.6 % Beauty Systems Group ("BSG") 382,146 382,571 (0.1 )% 793,713 795,020 (0.2 )% Total net sales $ 903,382 $ 883,146 2.3 % $ 1,846,550 $ 1,821,041 1.4 % Operating earnings: Sally $ 78,149 $ 77,305 1.1 % $ 156,046 $ 157,179 (0.7 )% BSG 47,368 43,934 7.8 % 101,275 94,403 7.3 % Segment operating earnings 125,517 121,239 3.5 % 257,321 251,582 2.3 % Unallocated expenses (1) 53,586 51,866 3.3 % 109,455 81,889 33.7 % Interest expense 14,165 16,289 (13.0 )% 28,785 33,731 (14.7 )% Earnings before provision for income taxes $ 57,766 $ 53,084 8.8 % $ 119,081 $ 135,962 (12.4 )% Segment gross margin: 2026 2025 Basis Point Change 2026 2025 Basis Point Change Sally 61.3 % 61.2 % 10 60.5 % 60.4 % 10 BSG 40.9 % 39.8 % 110 40.5 % 39.7 % 80 Segment operating margin: Sally 15.0 % 15.4 % (40 ) 14.8 % 15.3 % (50 ) BSG 12.4 % 11.5 % 90 12.8 % 11.9 % 90 Consolidated operating margin 8.0 % 7.9 % 10 8.0 % 9.3 % (130 ) (1) Unallocated expenses, including share-based compensation expense, consist of corporate and shared costs and are included in selling, general and administrative expenses. Additionally, unallocated expenses include costs associated with our Fuel for Growth initiative and a gain from the sale of our corporate headquarters during the six months ended March 31, 2026. Supplemental Schedule 2 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Non-GAAP Financial Measures Reconciliations (In thousands, except per share data) (Unaudited) Three Months Ended March 31, 2026 As Reported
(GAAP) Fuel for
Growth (1) Corporate HQ
Relocation (2) As Adjusted (Non-GAAP) Cost of products sold $ 427,610 $ (811 ) $ — $ 426,799 Consolidated gross margin 52.7 % 52.8 % Selling, general and administrative expenses 403,841 (281 ) (19 ) 403,541 SG&A expenses, as a percentage of sales 44.7 % 44.7 % Operating earnings 71,931 1,092 19 73,042 Operating margin 8.0 % 8.1 % Earnings before provision for income taxes 57,766 1,092 19 58,877 Provision for income taxes (4) 15,071 277 5 15,353 Net earnings $ 42,695 $ 815 $ 14 $ 43,524 Earnings per share: (5) Basic $ 0.44 $ 0.01 $ 0.00 $ 0.45 Diluted $ 0.43 $ 0.01 $ 0.00 $ 0.44 Three Months Ended March 31, 2025 As Reported
(GAAP) Fuel for Growth and Other (1) Corporate HQ
Relocation (2) Asset Impairment (3) As Adjusted (Non-GAAP) Cost of products sold $ 424,329 $ — $ — $ — $ 424,329 Consolidated gross margin 52.0 % 52.0 % Selling, general and administrative expenses 389,444 (3,807 ) (207 ) (1,779 ) 383,651 SG&A expenses, as a percentage of sales 44.1 % 43.4 % Operating earnings 69,373 3,807 207 1,779 75,166 Operating margin 7.9 % 8.5 % Earnings before provision for income taxes 53,084 3,807 207 1,779 58,877 Provision for income taxes (4) 13,874 976 53 445 15,348 Net earnings $ 39,210 $ 2,831 $ 154 $ 1,334 $ 43,529 Earnings per share: (5) Basic $ 0.39 $ 0.03 $ 0.00 $ 0.01 $ 0.43 Diluted $ 0.38 $ 0.03 $ 0.00 $ 0.01 $ 0.42 (1) Fuel for Growth and other represents expenses primarily related with our Fuel for Growth program and other non-recurring items. (2) For the three months ended March 31, 2026 and 2025, corporate HQ relocation primarily represents expenses in connection with the relocation of our headquarters. (3) Impairment related to the write-off of certain tradenames used in Europe. (4) The provision for income taxes was calculated using the applicable tax rates for each country, while excluding the tax benefits for countries where the tax benefit is not currently deemed probable of being realized. (5) The sum of the earnings per share may not equal the full amount due to rounding of the calculated amounts. Supplemental Schedule 3 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Non-GAAP Financial Measures Reconciliations, Continued (In thousands, except per share data) (Unaudited) Six Months Ended March 31, 2026 As Reported
(GAAP) Fuel for
Growth (1) Corporate HQ
Relocation (2) As Adjusted (Non-GAAP) Cost of products sold $ 887,519 $ (1,718 ) $ — $ 885,801 Consolidated gross margin 51.9 % 52.0 % Selling, general and administrative expenses 811,165 (1,461 ) (1,852 ) 807,852 SG&A expenses, as a percentage of sales 43.9 % 43.7 % Operating earnings 147,866 3,179 1,852 152,897 Operating margin 8.0 % 8.3 % Earnings before provision for income taxes 119,081 3,179 1,852 124,112 Provision for income taxes (4) 30,829 806 476 32,111 Net earnings $ 88,252 $ 2,373 $ 1,376 $ 92,001 Earnings per share: (5) Basic $ 0.91 $ 0.02 $ 0.01 $ 0.95 Diluted $ 0.88 $ 0.02 $ 0.01 $ 0.92 Six Months Ended March 31, 2025 As Reported
(GAAP) Fuel for Growth and Other (1) Corporate HQ
Relocation (2) Asset
Impairment (3) As Adjusted (Non-GAAP) Cost of products sold $ 885,384 $ — $ — $ — $ 885,384 Consolidated gross margin 51.4 % 51.4 % Selling, general and administrative expenses 765,964 (8,676 ) 26,433 (1,779 ) 781,942 SG&A expenses, as a percentage of sales 42.1 % 42.9 % Operating earnings 169,693 8,676 (26,433 ) 1,779 153,715 Operating margin 9.3 % 8.4 % Earnings before provision for income taxes 135,962 8,676 (26,433 ) 1,779 119,984 Provision for income taxes (4) 35,739 2,222 (6,797 ) 444 31,608 Net earnings $ 100,223 $ 6,454 $ (19,636 ) $ 1,335 $ 88,376 Earnings per share: (5) Basic $ 0.98 $ 0.06 $ (0.19 ) $ 0.01 $ 0.87 Diluted $ 0.96 $ 0.06 $ (0.19 ) $ 0.01 $ 0.84 (1) Fuel for Growth and other represents expenses primarily related with our Fuel for Growth program and other non-recurring items. (2) For the six months ended March 31, 2026, corporate HQ relocation primarily represents duplicate rent expense on the new office prior to our relocation from our Denton corporate headquarters. For the six months ended March 31, 2025, corporate HQ relocation primarily represents a $26.6 million gain from the sale of our Denton headquarters and expenses in connection with the relocation of our headquarters. (3) Impairment related to the write-off of a certain tradename used in Europe. (4) The provision for income taxes was calculated using the applicable tax rates for each country, while excluding the tax benefits for countries where the tax benefit is not currently deemed probable of being realized. (5) The sum of the earnings per share may not equal the full amount due to rounding of the calculated amounts. Supplemental Schedule 4 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Non-GAAP Financial Measures Reconciliations, Continued (In thousands) (Unaudited) Three Months Ended March 31, Six Months Ended March 31, Adjusted EBITDA: 2026 2025 Percentage Change 2026 2025 Percentage Change Net earnings $ 42,695 $ 39,210 8.9 % $ 88,252 $ 100,223 (11.9 )% Add: Depreciation and amortization 25,280 25,359 (0.3 )% 48,912 50,924 (4.0 )% Interest expense 14,165 16,289 (13.0 )% 28,785 33,731 (14.7 )% Provision for income taxes 15,071 13,874 8.6 % 30,829 35,739 (13.7 )% EBITDA (non-GAAP) 97,211 94,732 2.6 % 196,778 220,617 (10.8 )% Share-based compensation 5,969 4,238 40.8 % 13,524 10,291 31.4 % Fuel for Growth and Other 1,092 3,807 (71.3 )% 3,179 8,676 (63.4 )% Corporate HQ Relocation 19 207 (90.8 )% 1,852 (26,433 ) 107.0 % Asset Impairment — 1,779 (100.0 )% — 1,779 (100.0 )% Adjusted EBITDA (non-GAAP) $ 104,291 $ 104,763 (0.5 )% $ 215,333 $ 214,930 0.2 % Basis Point Change Basis Point Change Adjusted EBITDA as a percentage of net sales Adjusted EBITDA margin 11.5 % 11.9 % (40 ) 11.7 % 11.8 % (10 ) Free Cash Flow: 2026 2025 Percentage Change 2026 2025 Percentage Change Cash flows from operating activities $ 73,280 $ 51,062 43.5 % $ 166,519 $ 84,521 97.0 % Less: Payments for capital expenditures 29,162 18,893 54.4 % 64,946 38,971 66.7 % Plus: Proceeds from sales of property and equipment (1) — — — — 43,574 (100.0 )% Free cash flow (non-GAAP) $ 44,118 $ 32,169 37.1 % $ 101,573 $ 89,124 14.0 % (1) Represents the proceeds from the sale of our corporate headquarters. Supplemental Schedule 5 SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES Store Count and Comparable Sales (Unaudited) As of March 31, 2026 2025 Change Number of stores: Sally 3,079 3,117 (38 ) BSG: Company-operated stores 1,189 1,198 (9 ) Franchise stores 131 131 — Total BSG 1,320 1,329 (9 ) Total consolidated 4,399 4,446 (47 ) Number of BSG salon business consultants (1) 560 632 (72 ) (1) BSG salon business consultants (SBC) include 191 sales consultants employed by our franchisees at March 31, 2026 and 2025. Three Months Ended March 31, Six Months Ended March 31, 2026 2025 Basis Point Change 2026 2025 Basis Point Change Comparable sales growth (decline): Sally 2.5 % (0.3 )% 280 1.3 % 0.8 % 50 BSG (0.3 )% (2.7 )% 240 (0.2 )% (0.6 )% 40 Consolidated 1.3 % (1.3 )% 260 0.6 % 0.2 % 40 Our comparable sales include sales from stores that have been operating for 14 months or longer as of the last day of a month and e-commerce revenue. Additionally, our comparable sales include sales to franchisees and full-service sales. Our comparable sales amounts exclude the effect of changes in foreign exchange rates and sales from stores relocated until 14 months after the relocation. Revenue from acquired stores is excluded from our comparable sales calculation until 14 months after the acquisition. View source version on businesswire.com: https://www.businesswire.com/news/home/20260511500718/en/ Jeff Harkins
Investor Relations
940-297-4131
jharkins@sallybeauty.com Original: Sally Beauty Holdings Reports Second Quarter Fiscal 2026 Results
US Market News
2月前
Sally Beauty Holdings Appoints Adrianne Lee as Chief Financial OfficerApril 2, 2026 6:45 AM
Business Wire
Marlo Cormier to Step Down to Pursue Other Opportunities
Reaffirms Second Quarter and Fiscal Year 2026 Guidance
Sally Beauty Holdings, Inc. (NYSE: SBH) (“the Company”) today announced that Adrianne Lee has been appointed Senior Vice President and Chief Financial Officer, effective April 28, 2026. Ms. Lee succeeds Marlo Cormier, who will be leaving the company, effective April 11, 2026, to pursue other opportunities.
Ms. Lee brings significant relevant experience to the role, most recently serving as President and CFO at Bed Bath & Beyond. Ms. Lee joined Bed Bath & Beyond as CFO in 2020 and became Chief Administrative Officer in 2024 and President in 2025. Prior to that, she held senior executive roles at The Hertz Corporation from 2014 to 2020, including Senior Vice President & CFO, North America Rental Car, and Car Sales and Vice President, Global Financial Planning & Analysis. Earlier in her career, Ms. Lee held finance-focused roles at Best Buy Co., Inc., PepsiAmericas, Inc., Allianz Life and Price Waterhouse Coopers. Ms. Lee attended the University of St. Thomas in St. Paul, Minnesota, and received cum laude honors while earning a Bachelor of Arts degree in business administration with a focus on accounting.
Denise Paulonis, President and Chief Executive Officer, said, “We are excited to welcome Adrianne to the Company. Adrianne brings deep financial expertise across retail and other consumer-facing industries as well as a strong strategic mindset. Her business acumen makes her a strong addition to our Senior Leadership Team, and her proven talent development capability will be a great asset as she leads our finance function. I look forward to working closely with her to continue to execute our strategy.”
Ms. Lee said, “I am honored to join the Company at such an important point in its journey, with strong brands, clear strategic priorities, and meaningful opportunities ahead. Together with Denise and the rest of the leadership team, we will continue to advance the Company’s growth strategy, maintain disciplined financial execution and help drive long-term value for shareholders.”
Ms. Paulonis added, “On behalf of the Board and Executive Team, I want to thank Marlo for her service and her many positive contributions to the Company over the past six years. We wish her the best in her next chapter.”
The Company is reaffirming its financial guidance for its second quarter and fiscal year 2026, previously provided on February 9, 2026.
About Sally Beauty Holdings, Inc.
Sally Beauty Holdings, Inc. (NYSE: SBH), as the leader in professional hair color, sells and distributes professional beauty supplies globally through its Sally Beauty and Beauty Systems Group segments. Sally Beauty stores offer up to 7,000 products for hair color, hair care, nails, and skin care through proprietary brands such as Ion®, Bondbar®, Strawberry Leopard®, Generic Value Products®, Inspired by Nature® and Silk Elements® as well as professional lines such as Wella®, Clairol®, OPI®, L’Oreal®, Wahl® and Babyliss Pro®. Beauty Systems Group stores, branded as Cosmo Prof® or Armstrong McCall® stores, along with its outside sales consultants, sell up to 8,000 professionally branded products including Paul Mitchell®, Wella®, Matrix®, Schwarzkopf®, Kenra®, Goldwell®, Joico®, Amika® and Moroccanoil®, intended for use in salons and for resale by salons to retail consumers. For more information about Sally Beauty Holdings, Inc., please visit sallybeautyholdings.com/investor-relations.
Cautionary Notice Regarding Forward-Looking Statements
Statements in this news release that are not purely historical facts or that depend upon future events may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of words such as “believes,” “projects,” “expects,” “can,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “will,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters.
Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including the “Risk Factors” described under Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and other filings with the U.S. Securities and Exchange Commission. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein. We assume no obligation to publicly update or revise any forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260402029089/en/
Jeff Harkins
VP of Investor Relations & Treasurer
jharkins@sallybeauty.com
940-297-4131
Original: Sally Beauty Holdings Appoints Adrianne Lee as Chief Financial Officer
US Market News
3月前
Sally Beauty Expands "Rooted in Success" Campaign with Nationwide HBCU Student ProgrammingFebruary 27, 2026 9:02 AM
PR Newswire (US)
The 13-stop HBCU campus tour brings products, education, and representation directly to studentsPLANO, Texas, Feb. 27, 2026 /PRNewswire/ -- Sally Beauty, the industry-leading destination for professional-quality hair color, hair care and nails, announces the continuation of its Rooted in Success campaign. Launched in 2024, the platform is dedicated to uplifting and celebrating community along with the next generation of beauty. Building on the momentum from the retailer's partnership with Impressions of Beauty in 2025, Sally Beauty is expanding its impact by reaching 13 Historically Black Colleges and Universities (HBCUs) with additional student-focused activities happening through June. This year's Rooted in Success campaign will be further amplified in collaboration with ESSENCE magazine.
Sally Beauty kicked off the HBCU campus tour during Black History Month with stops at Alabama State University, Albany State University, and Virginia State University. The cross-country programming will continue through Women's History Month and beyond and bring professional-quality beauty solutions, education, and community engagement directly to students on campus. Upcoming stops include Lincoln University, Texas Southern University, Coppin State University, Dillard University, Prairie View A&M University, Florida A&M University, Jackson State University, Tuskegee University, Howard University and Southern University. Follow @SallyBeauty on social media for updated dates and timing for the remainder of the tour.Developed in collaboration with Impressions of Beauty, the campus tour will activate trusted student leaders as brand ambassadors, to create authentic, peer-to-peer engagement across each university. The free to attend pop-up events will feature a variety of products to support students' hair and nail journeys from Sally Beauty's owned brands Texture ID and Silk Elements to fan-favorite products from national brands such as Cantu, Camille Rose Naturals, Kaleidoscope, The Doux, Nailboo, and more*. In addition to the campus tour, Sally Beauty will support Impressions of Beauty's AchieveHER Community to continue sparking conversation and driving solution-based product discovery with programming through June."Rooted in Success is more than a campaign — it's a long-term commitment to driving community building in meaningful, tangible ways," said Chris Kobus, Chief Marketing Officer at Sally Beauty. "By meeting students where they are, and partnering with organizations that align with our values, we're continuing to invest in the future of beauty.""At Impressions of Beauty, we believe in equipping the next generation with access — to products that truly work for their hair and personal style, and to experiences that help them feel confident in their journey," shared Ashlee Gomez, Founder & CEO, Impressions of Beauty. "Through Sally Beauty's Rooted in Success platform, we're creating authentic, community-driven moments on HBCU campuses where students can explore, discover new favorites, and engage with brands in a way that feels both meaningful and fun. Partnering together allows us to turn on-campus engagement into confidence-building experiences for students nationwide."To extend the reach of the campaign beyond each campus, Sally Beauty is partnering with ESSENCE magazine, a trusted voice within the Black community, to amplify the message of Rooted in Success. The influential publication will highlight how Sally Beauty is supporting students and emerging leaders across its social media and digital channels.The 2026 Rooted in Success campus tour builds upon Sally Beauty's broader mission to champion education, inclusivity, and entrepreneurship within the textured hair community. In response to evolving consumer needs, Sally Beauty recently refreshed its Sally Beauty-owned Texture ID brand. The new and improved product line features a modernized look and feel, a new logo rooted in personalization, and an optimized product assortment curated to define your curls, coils, and waves. With an elevated focus on inclusivity across all curl types, performance-driven benefits, and authentic storytelling, the refresh reinforces Sally Beauty's commitment to innovation, accessibility, and empowering customers to care for and express their natural texture.Through brand partnerships, community-driven programs, and culturally relevant storytelling, Sally Beauty continues to invest in the next generation of beauty consumers, creators, and leaders.Follow @SallyBeauty on social media to learn more about the upcoming HBCU campus tour details.*While supplies lastAbout Sally Beauty Holdings, Inc.
Sally Beauty Holdings, Inc. (NYSE: SBH), as the leader in professional hair color, sells and distributes professional beauty supplies globally through its Sally Beauty and Beauty Systems Group businesses. Sally Beauty stores offer up to 7,000 products for hair color, hair care, nails, and skin care through proprietary brands such as Ion®, Bondbar®, Strawberry Leopard®, Generic Value Products®, Inspired by Nature® and Silk Elements® as well as professional lines such as Wella®, Clairol®, OPI®, L'Oreal®, Wahl® and Babyliss Pro®. Beauty Systems Group stores, branded as Cosmo Prof® or Armstrong McCall® stores, along with its outside sales consultants, sell up to 8,000 professionally branded products including Paul Mitchell®, Wella®, Matrix®, Schwarzkopf®, Kenra®, Goldwell®, Joico®, Amika® and Moroccanoil®, intended for use in salons and for resale by salons to retail consumers. For more information about Sally Beauty Holdings, Inc., please visit sallybeautyholdings.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/sally-beauty-expands-rooted-in-success-campaign-with-nationwide-hbcu-student-programming-302699162.htmlSOURCE Sally Beauty
Original: Sally Beauty Expands "Rooted in Success" Campaign with Nationwide HBCU Student Programming
US Market News
4月前
Sally Beauty Holdings Reports First Quarter Fiscal 2026 ResultsFebruary 9, 2026 6:45 AM
Business Wire
Q1 Consolidated Net Sales Increased 0.6%; Consolidated Comparable Sales Flat
Q1 GAAP Diluted EPS Decreased 22%; Adjusted Diluted EPS Increased 12%
Q1 Cash Flow from Operations of $93 Million Deployed to Invest for Growth, Strengthen Balance Sheet and Return Value to Shareholders
Company Raises Low End of Fiscal 2026 EPS Guidance
Sally Beauty Holdings, Inc. (NYSE: SBH) (the “Company”), the leader in professional hair color, today announced financial results for its first quarter ended December 31, 2025. The Company will hold a conference call today at 7:30 a.m. Central Time to discuss these results and its business.
“Our first quarter performance marks a strong start to fiscal 2026,” said Denise Paulonis, president and chief executive officer. “We achieved top line results that met our expectations, maintained healthy gross margins and delivered adjusted EPS growth of 12% - consistent with our long-term financial algorithm. Our robust cash flow from operations enabled us to invest for growth, reduce debt and return value to shareholders. We also made continued progress on our strategic initiatives designed to accelerate growth and increase profitability.”
Fiscal 2026 First Quarter Summary
Consolidated net sales of $943 million, an increase of 0.6% compared to the prior year;
Consolidated comparable sales were flat;
Global e-commerce sales of $111 million, representing 11.7% of net sales;
GAAP gross margin expansion of 40 basis points to 51.2%;
Adjusted Gross Margin expansion of 50 basis points to 51.3%;
GAAP selling, general and administrative expenses of $407 million, an increase of $31 million compared to the prior year;
Adjusted Selling, General and Administrative Expenses of $404 million, an increase of $6 million compared to the prior year;
GAAP operating earnings of $76 million and GAAP operating margin of 8.1%;
Adjusted Operating Earnings of $80 million and Adjusted Operating Margin of 8.5%;
GAAP diluted net earnings per share of $0.45, a decrease of 22% compared to the prior year;
Adjusted Diluted Net Earnings Per Share of $0.48, an increase of 12% compared to the prior year;
Cash flow from operations of $93 million and Free Cash Flow of $57 million; and
Completed $20 million in term loan repayment and $21 million in share repurchases.
Balance Sheet and Cash Flow
As of December 31, 2025, the Company had cash and cash equivalents of $157 million and no outstanding borrowings under its asset-based revolving line of credit. At fiscal year-end, inventory was $979 million, down 2.7% versus a year ago.
First quarter cash flow from operations was $93 million and Free Cash Flow totaled $57 million. During the first quarter, the Company utilized its cash flow to repay $20 million of term loan B debt and repurchase 1.4 million shares under its share repurchase program at an aggregate cost of $21 million. The Company ended the first quarter with a net debt leverage ratio of 1.5x.
Fiscal 2026 First Quarter Segment Results
Sally Beauty
Beauty Systems Group
(In thousands, except percentages)
Q1 FY26
Q1 FY25
Growth/(Decline)
Q1 FY26
Q1 FY25
Growth/(Decline)
Net Sales
$
531,601
$
525,446
1.2
%
$
411,567
$
412,449
(0.2
)%
Comparable Sales Growth/(Decline)
0.1
%
1.7
%
(160) bps
(0.2
)%
1.4
%
(160) bps
Gross Margin
59.8
%
59.6
%
20 bps
40.2
%
39.7
%
50 bps
Operating Earnings
$
77,897
$
79,874
(2.5
)%
$
53,907
$
50,469
6.8
%
Operating Margin
14.7
%
15.2
%
(50) bps
13.1
%
12.2
%
90 bps
Fiscal Year 2026 Guidance*
Second Quarter
Consolidated Net Sales
$895 million to $905 million (1)
Comparable Sales
Up 0.5% to 1.5%
Adjusted Operating Earnings
$68 million to $71 million
Adjusted Diluted EPS
$0.39 to $0.42
(1) Assumes approximately 100 basis points of favorable impact from expected foreign currency rates
Full Year
Prior FY26 Guidance
Updated FY26 Guidance
Consolidated Net Sales
$3.71 billion to $3.77 billion (1)
No change
Comparable Sales
Flat to up 1%
No change
Adjusted Operating Earnings
$328 million to $342 million
No change
Adjusted Diluted EPS
$2.00 to $2.10 (2)
$2.02 to $2.10 (2)
Capital Expenditures
Approximately $100 million
No change
Free Cash Flow
Approximately $200 million
No change
(1) Assumes approximately 50 basis points of favorable impact from expected foreign currency rates
(2) Assumes 50% of Free Cash Flow goes towards share repurchases (Free Cash Flow defined as GAAP cash flows from operating activities less payments for capital expenditures)
*
The Company does not provide a reconciliation for forward-looking non-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of its reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of the Company’s control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Conference Call and Where You Can Find Additional Information
The Company will hold a conference call and live webcast at approximately 7:30 a.m. Central Time today, February 9, 2026, to discuss its financial results and its business. During the conference call, the Company may discuss and answer one or more questions concerning business and financial matters and trends affecting the Company. The Company’s responses to these questions, as well as other matters discussed during the conference call, may contain or constitute material information that has not been previously disclosed.
Participants can listen to the live webcast of the conference call by accessing the investor relations section of the Company’s website at sallybeautyholdings.com/investor-relations/events-and-presentations/events-calendar, or through our third-party host at SBH Q1 Earnings Webcast. To join the conference call, participants can pre-register to receive a dial-in number and unique PIN using the following link: Pre-register SBH Q1 Earnings Call. Pre-registration can be completed at any time up to and following the call start time.
A replay will be available on the Company’s investor relations website after 10:00 a.m. Central Time on February 9, 2026, through February 9, 2027.
About Sally Beauty Holdings, Inc.
Sally Beauty Holdings, Inc. (NYSE: SBH), as the leader in professional hair color, sells and distributes professional beauty supplies globally through its Sally Beauty and Beauty Systems Group segments. Sally Beauty stores offer up to 7,000 products for hair color, hair care, nails, and skin care through proprietary brands such as Ion®, Bondbar®, Strawberry Leopard®, Generic Value Products®, Inspired by Nature® and Silk Elements® as well as professional lines such as Wella®, Clairol®, OPI®, L’Oreal®, Wahl® and Babyliss Pro®. Beauty Systems Group stores, branded as Cosmo Prof® or Armstrong McCall® stores, along with its outside sales consultants, sell up to 8,000 professionally branded products including Paul Mitchell®, Wella®, Matrix®, Schwarzkopf®, Kenra®, Goldwell®, Joico®, Amika® and Moroccanoil®, intended for use in salons and for resale by salons to retail consumers. For more information about Sally Beauty Holdings, Inc., please visit sallybeautyholdings.com/investor-relations.
Cautionary Notice Regarding Forward-Looking Statements
Statements in this news release and the schedules hereto that are not purely historical facts or that depend upon future events may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of words such as “believes,” “projects,” “expects,” “can,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “will,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters.
Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including the “Risk Factors” described under Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and other filings with the U.S. Securities and Exchange Commission. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein. We assume no obligation to publicly update or revise any forward-looking statements.
Use of Non-GAAP Financial Measures
This news release and the schedules hereto include the following financial measures that have not been calculated in accordance with accounting principles generally accepted in the United States, (“GAAP”), and are therefore referred to as non-GAAP financial measures: (1) Adjusted Gross Margin; (2) Adjusted Selling, General and Administrative Expenses; (3) Adjusted EBITDA and EBITDA Margin; (4) Adjusted Operating Earnings and Operating Margin; (5) Adjusted Net Earnings; (6) Adjusted Diluted Net Earnings Per Share; and (7) Free Cash Flow. We have provided definitions below for these non-GAAP financial measures and have provided tables in the schedules hereto to reconcile these non-GAAP financial measures to the comparable GAAP financial measures.
Adjusted Gross Margin – We define the measure Adjusted Gross Margin as GAAP gross margin excluding the inventory write-off from the Company’s European operations in connection with the fuel for growth initiative for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.
Adjusted Selling, General and Administrative Expenses – We define the measure Adjusted Selling, General and Administrative Expenses as GAAP selling, general and administrative expenses excluding the costs related to the Company’s fuel for growth initiative and expenses related to the Company’s corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.
Adjusted EBITDA and EBITDA Margin – We define the measure Adjusted EBITDA as GAAP net earnings before depreciation and amortization, interest expense, income taxes, share-based compensation, costs related to the Company’s fuel for growth initiative and expenses related to the Company’s corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of net sales.
Adjusted Operating Earnings and Operating Margin – Adjusted operating earnings are GAAP operating earnings that exclude the costs related to the Company’s fuel for growth initiative and expenses related to the Company’s corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted Operating Margin is Adjusted Operating Earnings as a percentage of net sales.
Adjusted Net Earnings – Adjusted net earnings is GAAP net earnings that exclude the tax-effected costs related to the Company’s fuel for growth initiative and tax-effected expenses related to the Company’s corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.
Adjusted Diluted Net Earnings Per Share – Adjusted diluted net earnings per share is GAAP diluted earnings per share that exclude the tax-effected costs related to the Company’s fuel for growth initiative and tax-effected expenses related to the Company’s corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.
Free Cash Flow – We define the measure Free Cash Flow as GAAP net cash provided by operating activities less payments for capital expenditures (net). We believe Free Cash Flow is an important liquidity measure that provides useful information to investors about the amount of cash generated from operations after taking into account payments for capital expenditures (net).
We believe that these non-GAAP financial measures provide valuable information regarding our earnings and business trends by excluding specific items that we believe are not indicative of the ongoing operating results of our businesses, providing a useful way for investors to make a comparison of our performance over time and against other companies in our industry.
We have provided these non-GAAP financial measures as supplemental information to our GAAP financial measures and believe these non-GAAP measures provide investors with additional meaningful financial information regarding our operating performance and cash flows. Our management and Board of Directors also use these non-GAAP measures as supplemental measures to evaluate our businesses and the performance of management, including the determination of performance-based compensation, to make operating and strategic decisions, and to allocate financial resources. We believe that these non-GAAP measures also provide meaningful information for investors and securities analysts to evaluate our historical and prospective financial performance. These non-GAAP measures should not be considered a substitute for or superior to GAAP results. Furthermore, the non-GAAP measures presented by us may not be comparable to similarly titled measures of other companies.
Supplemental Schedules
Segment Information
1
Non-GAAP Financial Measures Reconciliations
2
Non-GAAP Financial Measures Reconciliations; Adjusted EBITDA and
Free Cash Flow
3
Store Count and Comparable Sales
4
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except per share data)
(Unaudited)
Three Months Ended December 31,
2025
2024
Percentage Change
Net sales
$
943,168
$
937,895
0.6
%
Cost of products sold
459,909
461,055
(0.2
)%
Gross profit
483,259
476,840
1.3
%
Selling, general and administrative expenses
407,324
376,520
8.2
%
Operating earnings
75,935
100,320
(24.3
)%
Interest expense
14,620
17,442
(16.2
)%
Earnings before provision for income taxes
61,315
82,878
(26.0
)%
Provision for income taxes
15,758
21,865
(27.9
)%
Net earnings
$
45,557
$
61,013
(25.3
)%
Earnings per share:
Basic
$
0.47
$
0.60
(21.7
)%
Diluted
$
0.45
$
0.58
(22.4
)%
Weighted average shares:
Basic
97,804
102,021
Diluted
100,765
104,974
Basis Point Change
Comparison as a percentage of net sales
Consolidated gross margin
51.2
%
50.8
%
40
Selling, general and administrative expenses
43.2
%
40.1
%
310
Consolidated operating margin
8.1
%
10.7
%
(260
)
Effective tax rate
25.7
%
26.4
%
(70
)
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
December 31
September 30
2025
2025
Cash and cash equivalents
$
157,185
$
149,162
Trade and other accounts receivable
104,267
116,562
Inventory
978,789
987,575
Other current assets
45,444
48,154
Total current assets
1,285,685
1,301,453
Property and equipment, net
280,350
284,284
Operating lease assets
642,276
646,698
Goodwill and other intangible assets
593,929
593,692
Other assets
48,538
44,969
Total assets
$
2,850,778
$
2,871,096
Current maturities of long-term debt
$
4,000
$
4,000
Accounts payable
208,481
224,507
Accrued liabilities
158,576
184,641
Current operating lease liabilities
157,102
158,566
Income taxes payable
14,011
4,260
Total current liabilities
542,170
575,974
Long-term debt, including capital leases
842,531
861,974
Long-term operating lease liabilities
537,594
538,426
Other liabilities
21,985
21,026
Deferred income tax liabilities, net
82,933
79,489
Total liabilities
2,027,213
2,076,889
Total stockholders’ equity
823,565
794,207
Total liabilities and stockholders’ equity
$
2,850,778
$
2,871,096
Supplemental Schedule 1
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Segment Information
(In thousands)
(Unaudited)
Three Months Ended December 31,
2025
2024
Percentage
Change
Net sales:
Sally Beauty Supply ("Sally")
$
531,601
$
525,446
1.2
%
Beauty Systems Group ("BSG")
411,567
412,449
(0.2
)%
Total net sales
$
943,168
$
937,895
0.6
%
Operating earnings:
Sally
$
77,897
$
79,874
(2.5
)%
BSG
53,907
50,469
6.8
%
Segment operating earnings
131,804
130,343
1.1
%
Unallocated expenses (1)
55,869
30,023
86.1
%
Interest expense
14,620
17,442
(16.2
)%
Earnings before provision for income taxes
$
61,315
$
82,878
(26.0
)%
Segment gross margin:
2025
2024
Basis Point Change
Sally
59.8
%
59.6
%
20
BSG
40.2
%
39.7
%
50
Segment operating margin:
Sally
14.7
%
15.2
%
(50
)
BSG
13.1
%
12.2
%
90
Consolidated operating margin
8.1
%
10.7
%
(260
)
(1) Unallocated expenses, including share-based compensation expense, consist of corporate and shared costs and are included in selling, general and administrative expenses. Additionally, unallocated expenses include costs associated with our Fuel for Growth initiative and a gain from the sale of our corporate headquarters during the three months ended December 31, 2024.
Supplemental Schedule 2
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures Reconciliations
(In thousands, except per share data)
(Unaudited)
Three Months Ended December 31, 2025
As Reported
(GAAP)
Fuel for Growth and Other (1)
Corporate HQ
Relocation (2)
As Adjusted
(Non-GAAP)
Cost of products sold
$
459,909
$
(907
)
$
—
$
459,002
Consolidated gross margin
51.2
%
51.3
%
Selling, general and administrative expenses
407,324
(1,180
)
(1,833
)
404,311
SG&A expenses, as a percentage of sales
43.2
%
42.9
%
Operating earnings
75,935
2,087
1,833
79,855
Operating margin
8.1
%
8.5
%
Interest expense
14,620
—
—
14,620
Earnings before provision for income taxes
61,315
2,087
1,833
65,235
Provision for income taxes (3)
15,758
529
471
16,758
Net earnings
$
45,557
$
1,558
$
1,362
$
48,477
Earnings per share: (4)
Basic
$
0.47
$
0.02
$
0.01
$
0.50
Diluted
$
0.45
$
0.02
$
0.01
$
0.48
Three Months Ended December 31, 2024
As Reported
(GAAP)
Fuel for Growth and Other (1)
Corporate HQ
Relocation (2)
As Adjusted
(Non-GAAP)
Cost of products sold
$
461,055
$
—
$
—
$
461,055
Consolidated gross margin
50.8
%
50.8
%
Selling, general and administrative expenses
376,520
(4,869
)
26,640
398,291
SG&A expenses, as a percentage of sales
40.1
%
42.5
%
Operating earnings
100,320
4,869
(26,640
)
78,549
Operating margin
10.7
%
8.4
%
Interest expense
17,442
—
—
17,442
Earnings before provision for income taxes
82,878
4,869
(26,640
)
61,107
Provision for income taxes (3)
21,865
1,247
(6,851
)
16,261
Net earnings
$
61,013
$
3,622
$
(19,789
)
$
44,846
Earnings per share: (4)
Basic
$
0.60
$
0.04
$
(0.19
)
$
0.44
Diluted
$
0.58
$
0.03
$
(0.19
)
$
0.43
(1) Fuel for Growth and other represents expenses primarily related expenses associated with our Fuel for Growth program and other non-recurring items.
(2) For the three months ended December 31, 2025, corporate HQ relocation primarily represents duplicate rent expense on the new office prior to our relocation from our Denton corporate headquarters and expenses in connection with the relocation of our headquarters. For the three months ended December 31, 2024, corporate HQ relocation primarily represents the gain on the sale of our Denton corporate headquarters and certain assets within.
(3) The provision for income taxes was calculated using the applicable tax rates for each country, while excluding the tax benefits for countries where the tax benefit is not currently deemed probable of being realized.
(4) The sum of the earnings per share may not equal the full amount due to rounding of the calculated amounts.
Supplemental Schedule 3
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures Reconciliations, Continued
(In thousands)
(Unaudited)
Three Months Ended December 31,
Adjusted EBITDA:
2025
2024
Percentage
Change
Net earnings
$
45,557
$
61,013
(25.3
)%
Add:
Depreciation and amortization
23,632
25,565
(7.6
)%
Interest expense
14,620
17,442
(16.2
)%
Provision for income taxes
15,758
21,865
(27.9
)%
EBITDA (non-GAAP)
99,567
125,885
(20.9
)%
Share-based compensation
7,555
6,053
24.8
%
Fuel for Growth and Other
2,087
4,869
(57.1
)%
Corporate HQ Relocation
1,833
(26,640
)
106.9
%
Adjusted EBITDA (non-GAAP)
$
111,042
$
110,167
0.8
%
Basis Point
Change
Adjusted EBITDA as a percentage of net sales
Adjusted EBITDA margin
11.8
%
11.7
%
10
Free Cash Flow:
2025
2024
Percentage Change
Cash flows from operating activities
$
93,239
$
33,459
178.7
%
Less:Payments for capital expenditures
35,784
20,078
78.2
%
Plus:Proceeds from sales of property and equipment (1)
—
43,574
—
Free cash flow (non-GAAP)
$
57,455
$
56,955
0.9
%
(1) Represents the proceeds from the sale of our corporate headquarters.
Supplemental Schedule 4
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Store Count and Comparable Sales
(Unaudited)
As of December 31,
2025
2024
Change
Number of stores:
Sally
3,090
3,123
(33
)
BSG:
Company-operated stores
1,194
1,199
(5
)
Franchise stores
131
131
—
Total BSG
1,325
1,330
(5
)
Total consolidated
4,415
4,453
(38
)
Number of BSG salon business consultants (1)
590
639
(49
)
(1) BSG salon business consultants (SBC) include 182 and 191 sales consultants employed by our franchisees at December 31, 2025 and 2024, respectively.
Three Months Ended December 31,
2025
2024
Basis Point
Change
Comparable sales growth (decline):
Sally
0.1
%
1.7
%
(160
)
BSG
(0.2
)%
1.4
%
(160
)
Consolidated
0.0
%
1.6
%
(160
)
Our comparable sales include sales from stores that have been operating for 14 months or longer as of the last day of a month and e-commerce revenue. Additionally, our comparable sales include sales to franchisees and full-service sales. Our comparable sales amounts exclude the effect of changes in foreign exchange rates and sales from stores relocated until 14 months after the relocation. Revenue from acquired stores is excluded from our comparable sales calculation until 14 months after the acquisition.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260209107164/en/
Jeff Harkins
Investor Relations
940-297-4131
jharkins@sallybeauty.com
Original: Sally Beauty Holdings Reports First Quarter Fiscal 2026 Results
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