The Texas-based retailer reported consolidated web gross sales of $943 million for the quarter ended December 31, 2025, a 0.6% improve in contrast with the identical interval final 12 months. Comparable gross sales, which embody e-commerce and shops open no less than 14 months, have been flat.
“Our first quarter efficiency marks a robust begin to fiscal 2026,” Denise Paulonis, president and chief government officer, mentioned within the firm’s earnings report. “We achieved prime line outcomes that met our expectations, maintained wholesome gross margins and delivered adjusted EPS progress of 12%, in keeping with our long-term monetary algorithm.”
On-line gross sales proceed to hold weight
E-commerce accounted for $111 million in gross sales through the quarter, or simply underneath 12% of complete income. The channel has remained one of many firm’s extra constant areas of progress, whilst in-store efficiency has leveled off.
Margins additionally moved greater. Gross margin rose to only over 51%, reflecting a barely improved stability between pricing and product prices. That enchancment was partly offset by greater promoting and administrative bills, which elevated in contrast with final 12 months.
“Our sturdy money move from operations enabled us to take a position for progress, scale back debt and return worth to shareholders,” Paulonis mentioned.
Outcomes align with themes highlighted in earlier business evaluation
The primary-quarter efficiency broadly follows themes outlined in CosmeticsDesign’s monetary evaluation of Sally Magnificence printed final 12 months, which pointed to regular demand, a rising reliance on digital channels and tighter management over money move as defining options of the corporate’s current efficiency.
That earlier evaluation famous that whereas progress had slowed in contrast with earlier cycles, the corporate appeared targeted on defending margins moderately than chasing quantity. The present outcomes recommend that the method has carried into the brand new fiscal 12 months.
Retail and salon channels transfer in numerous instructions
Gross sales within the Sally Magnificence retail section rose 1.2% 12 months over 12 months to $531.6 million. Comparable gross sales within the section edged up barely, suggesting comparatively steady demand for at-home hair coloration and private care merchandise.
In distinction, the corporate’s Magnificence Programs Group section, which provides skilled salons, reported a small decline in web gross sales to $411.6 million.
For the complete fiscal 12 months, the corporate maintained its web gross sales outlook of $3.71 billion to $3.77 billion, with comparable gross sales anticipated to be flat to up 1%.
