Sally Beauty narrows fiscal 2026 outlook after flat third-quarter sales

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Sally Beauty reported fiscal third-quarter net sales of $935 million, roughly flat from a year earlier, while adjusted diluted earnings per share rose 8% to $0.55. The Sally segment grew net sales 2.2% to $539 million with comparable sales up 1.6%, driven by strong color demand and e-commerce, whereas the Beauty Systems Group segment saw net sales decline 2.4% to $397 million amid continued softness in hair care. Adjusted gross margin expanded 40 basis points to 52.4%, supported by the Fuel for Growth cost-savings program, and the company generated $81 million in operating cash flow. Sally Beauty narrowed its full-year fiscal 2026 guidance, now expecting comparable sales growth of approximately 0.5%, adjusted diluted earnings per share of $2.04 to $2.08, and free cash flow of about $200 million.

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