Global e-commerce sales increased 13% year-over-year to $108 million, representing 12% of total net sales. The growth reflects Sally Beauty’s accelerating investment in digital commerce and marketplace expansion, including its recent launch on TikTok Shop. Sally Beauty
The company said second-quarter results reflected “solid execution and the resilience of our operating model amid a dynamic macroeconomic environment,” according to president and CEO Denise Paulonis. Paulonis pointed to low-single-digit sales growth, gross margin expansion and strong operating cash flow as evidence that the company’s long-term growth initiatives are beginning to compound despite continued consumer and salon channel pressures.
Global e-commerce sales increased 13% year-over-year to $108 million, representing 12% of total net sales. The growth reflects Sally Beauty’s accelerating investment in digital commerce and marketplace expansion, including its recent launch on TikTok Shop. The retailer entered the platform in March with plans to offer more than 1,000 products, including owned brands such as ion, Silk Elements and Beyond the Zone, alongside national brands including Sauce Beauty and planned additions such as Iroiro and Andis.
Chief marketing officer Chris Kobus said the TikTok Shop expansion aligns with changing beauty shopping behavior as consumers increasingly discover and purchase products through creator-driven platforms and social commerce ecosystems. Vice president of e-commerce Jamie Columbus added that the company continues to see strong double-digit growth across digital channels, including Amazon and delivery partnerships such as Uber Eats.
Gross margin expanded 70 basis points to 52.7% during the quarter, while adjusted gross margin rose 80 basis points to 52.8%. Operating earnings totaled $72 million on a GAAP basis, with operating margin reaching 8.0%. Adjusted operating earnings came in at $73 million, representing an 8.1% operating margin.
Within the company’s operating segments, Sally Beauty Supply delivered the strongest performance. Segment sales increased 4.1% to $521.2 million, while comparable sales rose 2.5%, reversing declines seen a year earlier. Segment gross margin improved slightly to 61.3%, though operating margin declined 40 basis points to 15.0%.
Meanwhile, the company’s Beauty Systems Group segment remained relatively flat, with sales down 0.1% to $382.1 million. Comparable sales declined 0.3%, though this represented a marked improvement from the 2.7% decline reported in the prior-year period. Gross margin in the segment expanded 110 basis points to 40.9%, while operating earnings increased 7.8% to $47.4 million.
Sally Beauty generated $73 million in cash flow from operations during the quarter and reported free cash flow of $44 million. The company used a portion of that cash to repay $20 million in term loan debt and repurchase 1.7 million shares for $25 million. Inventory ended the quarter down 2% year-over-year at $987 million, while the company finished the period with $157 million in cash and no borrowings under its revolving credit facility.
Looking ahead, Sally Beauty tightened its fiscal 2026 sales outlook while reiterating all other guidance metrics. The company now expects full-year consolidated net sales between $3.725 billion and $3.750 billion, narrowing its prior range of $3.71 billion to $3.77 billion. Comparable sales guidance remains unchanged at flat to up 1%, while adjusted operating earnings are still expected between $328 million and $342 million. Adjusted diluted EPS guidance also remains unchanged at $2.02 to $2.10 for the fiscal year.
