The Texas-based retailer reported consolidated net sales of $943 million for the quarter ended December 31, 2025, a 0.6% increase compared with the same period last year. Comparable sales, which include e-commerce and stores open at least 14 months, were flat.
“Our first quarter performance marks a strong start to fiscal 2026,” Denise Paulonis, president and chief executive officer, said in the company’s earnings report. “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.”
Online sales continue to carry weight
E-commerce accounted for $111 million in sales during the quarter, or just under 12% of total revenue. The channel has remained one of the company’s more consistent areas of growth, even as in-store performance has leveled off.
Margins also moved higher. Gross margin rose to just over 51%, reflecting a slightly improved balance between pricing and product costs. That improvement was partly offset by higher selling and administrative expenses, which increased compared with last year.
“Our robust cash flow from operations enabled us to invest for growth, reduce debt and return value to shareholders,” Paulonis said.
Results align with themes highlighted in earlier industry analysis
The first-quarter performance broadly follows themes outlined in CosmeticsDesign’s financial analysis of Sally Beauty published last year, which pointed to steady demand, a growing reliance on digital channels and tighter control over cash flow as defining features of the company’s recent performance.
That earlier analysis noted that while growth had slowed compared with earlier cycles, the company appeared focused on protecting margins rather than chasing volume. The current results suggest that the approach has carried into the new fiscal year.
Retail and salon channels move in different directions
Sales in the Sally Beauty retail segment rose 1.2% year over year to $531.6 million. Comparable sales in the segment edged up slightly, suggesting relatively stable demand for at-home hair color and personal care products.
In contrast, the company’s Beauty Systems Group segment, which supplies professional salons, reported a small decline in net sales to $411.6 million.
For the full fiscal year, the company maintained its net sales outlook of $3.71 billion to $3.77 billion, with comparable sales expected to be flat to up 1%.
