Sally Beauty Holdings, Inc. delivered a strong start to fiscal 2026 with top-line results and adjusted earnings per share exceeding expectations, despite a challenging macro environment.

• Total sales reached $943 million with adjusted diluted EPS up 12% to $0.48, driven by strong gross margins of 51%.
• Sally's US and Canada segment saw comparable sales growth of 1.3%, supported by an 8% increase in the core color category.
• Ecommerce sales surged 20%, with significant contributions from marketplaces and key holiday promotions.
• Strategic exit from lower-margin full-service operations in Europe is expected to enhance profitability and simplify operations.
• Growth strategies focus on customer acquisition, particularly among millennials and Gen Z, leveraging innovative programs like licensed Colors on Demand.