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Sally Beauty Holdings (SBH) FY2026 results: revenue $3.7 billion, up 0.9% on the year

Sally Beauty Holdings, Inc. (SBH) reported revenue of $3.7 billion for fiscal 2026, the year ended 30 September 2026, up 0.9% on the year before. Net income was $200 million, up 2.1%, and diluted earnings per share $2.02. The figures are the company's own, from the 10-K it filed with the SEC on 10 November 2026.

Revenue
$3.7 billion
+0.9% on the year
FY2019FY2026
Operating margin
8.7%
8.9% a year earlier
FY2019FY2026
Net income
$200 million
+2.1% on the year
FY2019FY2026
Diluted EPS
$2.02
+6.9% on the year
FY2019FY2026

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 12 new.

  • Q4 sales rose 0.6%: Fourth-quarter net sales were $953 million, up 0.6%, with Sally up 1.6% and BSG down 0.8%. Full-year net sales were $3.73 billion, up 0.9%.
  • Q4 operating earnings rose 15%: GAAP operating earnings were $92 million, up 15.3%, with a GAAP operating margin of 9.7%, up 130 basis points. Adjusted operating earnings were $95 million, a 10.0% margin.
  • Q4 adjusted EPS rose 13%: Adjusted diluted EPS was $0.62, up 13%. GAAP diluted EPS was $0.60, up 22% from $0.49 a year earlier.
  • BSG Q4 sales fell 0.8%: BSG Q4 net sales were $402.2 million, down 0.8%, with a flat 40.0% gross margin, operating earnings of $51.9 million, up 1.2%, and a 12.9% operating margin, up 30 basis points.
  • Gross margin fell 30 basis points: Q4 GAAP gross margin was 51.9%, down from 52.2%. Sally gross margin was 60.6%, down 70 basis points; BSG gross margin was 40.0%, flat.
Read the Q4 FY2026 earnings call summary

From this 10-K

Sally Beauty Holdings describes itself as "a leading international specialty retailer and distributor of professional beauty supplies." It sells hair color, hair care, styling tools and nails through two segments, Sally Beauty and Beauty Systems Group. At 30 September 2026 it had 4,390 stores including franchises: 3,062 in Sally Beauty and 1,328 in Beauty Systems Group. Hair color and hair care products made up more than 70% of total consolidated sales in each of the past three fiscal years. The company had approximately 26,500 associates worldwide.

Sally Beauty Holdings, Inc., the 10-K for 2026

Sally Beauty Holdings describes itself as "a leading international specialty retailer and distributor of professional beauty supplies." It sells hair color, hair care, styling tools and nails through two segments, Sally Beauty and Beauty Systems Group. At 30 September 2026 it had 4,390 stores including franchises: 3,062 in Sally Beauty and 1,328 in Beauty Systems Group. Hair color and hair care products made up more than 70% of total consolidated sales in each of the past three fiscal years. The company had approximately 26,500 associates worldwide.

How the business is organised

Sally Beauty ("Sally") is an omni-channel retailer. It sells beauty supplies to retail consumers and salon professionals in North America, South America and Europe. It sells mainly through stores, generally under the Sally Beauty banner, and through digital platforms: sallybeautyholdings' own website, a mobile app and third-party marketplaces.

Beauty Systems Group ("BSG") is a distributor that sells only to salons and licensed beauty professionals in the United States, including Puerto Rico, and in Canada. It sells through company-operated stores, generally under the Cosmo Prof banner, franchised stores including Armstrong McCall, salon business consultants, and digital platforms. The filing says salon professionals mostly rely on just-in-time inventory because of capital constraints and limited warehouse and shelf space.

What it sells

The product categories are hair color, hair care, styling tools, nails, skin and cosmetics, and other beauty products such as salon chairs and shampoo bowls. Sally stocks third-party brands, owned brands and exclusive-label brands. Its top owned brands are Ion, Salon Care, Beauty Secrets, Bondbar and Inspired by Nature. Owned brands were approximately 36% of Sally sales in fiscal 2026.

In the United States and Canada, Sally stores offer an average of 6,500 products and average approximately 1,700 square feet. BSG stores offer approximately 8,500 products on average and average approximately 2,700 square feet. Sally also runs Happy Beauty Co., a concept built around independent beauty brands, with 11 stores at the end of fiscal 2026. Under its Sally Ignited program, 80 U.S. stores have been refreshed or opened, and the company says it plans 100 more in fiscal 2027.

Who it sells to and buys from

In the United States and Canada, Sally has more than 15 million active customers, meaning they shopped in the past 12 months. A majority belong to the free Sally Beauty Rewards Program. BSG serves licensed stylists and salons, and 547 salon business consultants visit, support and sell to them directly.

The company buys branded goods directly from manufacturers. Its five largest suppliers were Henkel AG & Co. KGaA, Wella Company, the Professional Products Division of L'Oreal USA S/D, Inc., John Paul Mitchell Systems and Kao Corporation. Together they were approximately 44% of consolidated merchandise purchases.

Where it operates

Sally has stores in the United States (including Puerto Rico), Canada, Mexico, the United Kingdom, Ireland, Belgium, France, Germany, the Netherlands and Chile. Global e-commerce was approximately 11.8% of consolidated sales in fiscal 2026. Online channels include Amazon, DoorDash, Uber Eats, Instacart, Shipt and TikTok, along with buy online, pick up in store and 2-hour delivery. Licensed Colorist on Demand lets customers chat with a licensed colorist by text, voice or video, and it is available in all 50 states.

Distribution centers mainly receive goods from U.S.-based suppliers and supply stores, franchise locations, salon business consultants and ship-to-customer orders. The filing says the business is generally not seasonal.

How it competes

The filing lists these competitive factors: price, exclusive distribution arrangements, product quality and variety, customer service, distribution efficiency and store locations. Sally competes with beauty supply stores, mass merchandisers, online retailers, drug stores, department stores, supermarkets and salons that sell hair care products. BSG competes with wholesale suppliers, online retailers and manufacturers that sell directly to salons. Some manufacturers use their own sales forces, and some have bought distributors and stores.

The products and their marketing are regulated by agencies including the Food and Drug Administration, the Federal Trade Commission and the Consumer Product Safety Commission. Outside the United States, cosmetic rules come from bodies such as the European Commission, Health Canada, COFEPRIS in Mexico and the ISP in Chile. Franchising is regulated as well.

Its people

The company had approximately 26,500 global associates at 30 September 2026, including approximately 11,000 full-time associates. In the United States and Canada, the team is approximately 90% women and approximately 50% people of color. The company's headquarters is in Plano, Texas.

From Sally Beauty Holdings's annual report on Form 10-K for the year ended 30 September 2026. The filing

Written from the 10-K filed 10 November 2026: read the full 10-K.

The four quarters: Q1 FY2026 · Q2 FY2026 · Q3 FY2026 · Q4 FY2026

Income statement (profit and loss)

$ millionFY2026FY2025FY2024On the yearLast 8 years
Revenue3,7353,7013,717+0.9%
Cost of revenue1,7911,7911,827+0.0%
Gross profit1,9441,9111,890+1.7%
Gross margin52.0%51.6%50.9%
Selling, general and administrative1,6171,5831,608+2.2%
Operating income326328283-0.4%
Operating margin8.7%8.9%7.6%
Interest expense56.464.476.4-12.5%
Pre-tax income270263206+2.5%
Income tax70.067.552.9+3.7%
Effective tax rate25.9%25.6%25.6%
Net income200196153+2.1%
Net margin5.4%5.3%4.1%
Diluted EPS$2.02$1.89$1.43+6.9%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2026FY2025FY2024On the yearLast 8 years
Operating cash flow323275247+17.4%
Capital expenditure112102101+10.1%
Free cash flow210173145+21.7%
Free cash flow margin5.6%4.7%3.9%
Cash from investing-112-58.3-109
Cash from financing-200-178-154
Depreciation and amortisation10199.9110+0.9%
Share-based compensation23.619.217.2+22.4%
Buybacks11454.060.4+110.9%
Diluted shares, weighted99m104m107m-4.8%
Shares outstanding at period end92m98m102m-6.5%

Balance sheet

$ millionFY2026FY2025FY2024On the yearLast 8 years
Shareholders' equity889794629+11.9%
Debt795875994-9.1%
Operating lease liabilities567538480+5.3%
Other liabilities652663691-1.7%
Total liabilities and equity2,9032,8712,793+1.1%
Fixed assets285284270+0.3%
Goodwill538541538-0.5%
Intangible assets50.053.060.0-5.6%
Cash and equivalents158149108+6.0%
Receivables30.131.833.6-5.5%
Inventory1,0019881,037+1.4%
Other assets841825747+2.0%
Total assets2,9032,8712,793+1.1%

10-K for the year ended 30 September 2026, filed 10 November 2026: the filing.