Sally Beauty Holdings Reports Strong Q3 2025 Results

Sally Beauty Holdings ( (SBH) ) has released its Q3 earnings. Here is a breakdown of the information Sally Beauty Holdings presented to its investors.

Sally Beauty Holdings, Inc. (NYSE: SBH) is a global leader in professional hair color and beauty supplies, operating through its Sally Beauty Supply and Beauty Systems Group segments, offering a wide range of products for hair, nails, and skin care.

In its third quarter fiscal 2025 earnings report, Sally Beauty Holdings reported a slight decrease in net sales but achieved notable growth in operating margins and earnings per share. The company’s strategic initiatives have led to a strengthened balance sheet and an optimistic outlook for the remainder of the fiscal year.

Key financial highlights include consolidated net sales of $933 million, a 1.0% decrease from the previous year, and a consolidated comparable sales decrease of 0.4%. However, the company saw a 22% increase in GAAP diluted net earnings per share to $0.44 and a 13% increase in adjusted diluted net earnings per share to $0.51. The GAAP operating margin expanded by 80 basis points to 8.4%, and adjusted operating margin increased by 30 basis points to 9.2%.

The company’s ‘Fuel for Growth’ initiative has been instrumental in driving these improvements, contributing to a fourth consecutive quarter of operating margin expansion. Despite a challenging macroeconomic environment, Sally Beauty Holdings has managed to maintain strong growth in its hair color and digital marketplaces, while also benefiting from lower distribution and freight costs.

Looking ahead, Sally Beauty Holdings has adjusted its full-year comparable sales outlook to the high end of its prior range and raised its full-year adjusted operating margin guidance. The company remains focused on advancing its strategic pillars and is optimistic about its continued financial performance in the face of ongoing market complexities.