The beauty retailer reported stable fiscal third-quarter results, with adjusted earnings growth driven by margin expansion and cost controls.
Sally Beauty Holdings reported fiscal third-quarter net sales of $935 million, unchanged year over year, as comparable sales remained flat. Adjusted earnings per share increased 8% to $0.55, supported by gross-margin expansion and $81 million in operating cash flow.
Adjusted operating income reached $87 million, while free cash flow totaled $62 million. The Sally segment outperformed, with sales up 2.2% and comparable sales rising 1.6%, driven by color demand and e-commerce growth. The Beauty Systems Group saw a 2.4% sales decline due to weak hair-care demand.
The company narrowed its fiscal 2026 guidance, expecting 0.5% comparable-sales growth, adjusted EPS of $2.04–$2.08, and approximately $200 million in free cash flow.