How did Sally Beauty Holdings (NYSE:SBH) perform in Q1 2026?

Sally Beauty reported Q1 2026 consolidated net sales of $903 million, up 2.3% year-over-year. Consolidated comparable sales rose 1.3%, while global e-commerce revenue jumped 13%, now representing 12% of total sales. The company delivered GAAP diluted EPS of $0.43 and adjusted EPS of $0.44, both exceeding analyst expectations.

What drove Sally Beauty’s revenue growth in Q1 2026?

Revenue growth was supported by a 13% increase in global e-commerce sales and a 1.3% rise in consolidated comparable store sales. The shift toward high-margin professional labels and private-brand hair color products also contributed to stronger top-line performance.

How did profitability metrics look for Sally Beauty in Q1 2026?

GAAP gross margin expanded by 70 basis points to 52.7%, while adjusted gross margin reached 52.8%. GAAP operating earnings were $72 million, yielding an 8.0% margin. The company managed to increase profitability despite higher SG&A expenses driven by labor and marketing investments.

How did SG&A expenses affect Sally Beauty’s results?

Adjusted SG&A expenses rose by $20 million to $404 million due to higher labor costs and targeted marketing initiatives aimed at driving traffic to Sally Beauty and CosmoProf stores. Despite the increase, the company still achieved margin expansion and EPS growth.

How did e-commerce contribute to Sally Beauty’s Q1 2026 performance?

E-commerce revenue grew 13% year-over-year, now accounting for 12% of total sales. This channel was a key driver of growth, reflecting the company’s successful strategy to capture higher-margin online demand for professional hair and beauty products.

Sally Beauty delivers $903M in sales, digital revenue up 13%

Written by Mahathir BayenaPublished May. 11 2026Last Updated May. 11 2026

Sally Beauty Holdings (NYSE:SBH) posted consolidated net sales of $903 million for the quarter ended March 31, 2026, a 2.3% increase over the prior-year period.

The results were bolstered by a 1.3% rise in consolidated comparable sales and a notable 13% jump in global e-commerce revenue, which now accounts for 12% of the company's total turnover.

The Denton, Texas-based retailer saw its GAAP gross margin expand by 70 basis points to 52.7%, while adjusted gross margins reached 52.8%.

This expansion reflects a successful shift toward high-margin professional labels and private-brand hair color products.

GAAP diluted net earnings per share rose 13% year-over-year to $0.43, while adjusted diluted EPS climbed 5% to $0.44, surpassing average analyst estimates.

The gains in profitability came despite a rise in overhead.

Adjusted selling, general, and administrative (SG&A) expenses increased by $20 million to $404 million, driven by higher labor costs and targeted marketing investments intended to drive traffic to its Sally Beauty and CosmoProf stores.

GAAP operating earnings for the quarter stood at $72 million, yielding an 8.0% margin.

Meanwhile, Sally Beauty demonstrated continued financial discipline, generating $73 million in cash flow from operations and $44 million in free cash flow during the quarter.