Sally Beauty Reports Flat Q3 Sales with Segment Divergence
Sally Beauty Holdings (NYSE: SBH) reported flat fiscal third-quarter net sales of $935 million, in line with the prior year. Adjusted earnings per share rose 8% to $0.55 due to gross-margin expansion and cost controls. The Sally segment outperformed with a 2.2% increase in net sales driven by strong color demand and e-commerce growth. In contrast, Beauty Systems Group (BSG) saw a 2.4% decline as hair-care demand remained weak. The company generated $81 million in operating cash flow during the quarter and narrowed its fiscal 2026 guidance to expect approximately 0.5% comparable-sales growth and adjusted EPS of $2.04–$2.08. Sally Beauty also announced plans for a hair-care assortment reset, including new brands like Yellow and NatureLab TOKYO. Despite the mixed performance between segments, management remains focused on store refreshes, cost savings initiatives, and share repurchases to drive long-term value.
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