Consolidated Net Sales Dip 2.8% for Sally Beauty in Q2 2025

Consolidated net sales for Sally Beauty Holdings, Inc., a leader in professional hair color, were $883 million in Q2 2025, a 2.8% decrease from the prior-year quarter.

The decline includes 110 basis points of unfavorable foreign currency impact. Global e-commerce sales were $94 million, representing 10.7% of net sales; GAAP gross margin expanded 100 basis points to 52.0%.

“We are pleased to report a third consecutive quarter of adjusted operating margin expansion and increased profitability, driven by strong gross margin performance and careful cost control,” said Denise Paulonis, president and CEO. “We were able to deliver these results amidst a challenging macro backdrop, which impacted our topline performance. The business continues to generate strong cash flow, enabling us to maintain our balanced capital allocation strategy, which prioritizes investing in our strategic initiatives, optimizing our balance sheet and returning value to shareholders. During the second quarter, we further reduced our debt levels by $36 million and repurchased $10 million of stock under our share repurchase program.”

Share Repurchase Program

In 2017, the company Board of Directors approved a share repurchase program authorizing the company to repurchase up to $1.0 billion of its common stock through Sept. 30, 2021. In 2021, the board approved an extension of the share repurchase program for the four-year period ending Sept. 30, 2025. In total, the company has repurchased $498.9 million of its common stock under this share repurchase program.
On May 6, 2025, the board approved an extension of the share repurchase program for an additional four-year period ending on Sept. 30, 2029. Under this extension, the company is authorized to repurchase its common stock up to the amount remaining under the initial 2017 authorization, which is currently $501.1 million.

Repurchases will be made in compliance with all US Securities and Exchange Commission rules, including Rule 10b-18 and other legal requirements.

Fiscal Year 2025 Guidance

Sally Beauty is updating its full year guidance to reflect current business trends. Given the complexity surrounding global trade policy and its potential impact on consumer sentiment and spending, the guidance the company is providing does not assume any material change to the macroeconomic environment or broader consumer demand trends. For Q3, comparable sales are expected to be flat to down 2% compared to the prior year. Consolidated net sales are expected to be approximately 50 basis points lower than comparable sales due to the expected unfavorable impact from foreign exchange rates. Comparable sales for FY 2025 are expected to be flat to down 1% compared to the prior year.