Segment Reporting (Tables)

6 Months Ended

Mar. 31, 2026

The following tables summarize our results for the three and six months ended March 31, 2026 and 2025 (in thousands):


`	Three Months Ended March 31, 2026						Three Months Ended March 31, 2025
	Sally		BSG		Total		Sally		BSG		Total
Net sales (a)	$	521,236	$	382,146	$	903,382	$	500,575	$	382,571	$	883,146
Less: (b)
Cost of goods sold		201,904		225,706		427,610		194,178		230,151		424,329
Selling, general, and administrative expenses		241,183		109,072		350,255		229,092		108,486		337,578
Segment operating earnings		78,149		47,368		125,517		77,305		43,934		121,239

Unallocated expenses (c)						53,586						51,866
Interest expense						14,165						16,289
Earnings before provision for income taxes					$	57,766					$	53,084


`	Six Months Ended March 31, 2026						Six Months Ended March 31, 2025
	Sally		BSG		Total		Sally		BSG		Total
Net sales (a)	$	1,052,837	$	793,713	$	1,846,550	$	1,026,021	$	795,020	$	1,821,041
Less: (b)
Cost of goods sold		415,563		471,956		887,519		406,368		479,016		885,384
Selling, general, and administrative expenses		481,228		220,482		701,710		462,474		221,601		684,075
Segment operating earnings		156,046		101,275		257,321		157,179		94,403		251,582

Unallocated expenses (c)						109,455						81,889
Interest expense						28,785						33,731
Earnings before provision for income taxes					$	119,081					$	135,962

(a)

There were no intersegment sales between our segments, nor did any single customer account for 10% or more of revenue.

(b)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(c)

Unallocated expenses consist of corporate and shared costs, including certain costs associated with our Fuel for Growth initiative, and are included in selling, general and administrative expenses in our condensed consolidated statements of earnings. For the six months ended March 31, 2025, unallocated expenses included a $26.6 million gain related to the sale of our corporate headquarters. See Note 7, Property and Equipment, Net, for more information.

Other Segment Disclosures


	Three Months Ended March 31,				Six Months Ended March 31,
(in thousands)	2026		2025		2026		2025
Depreciation and amortization:
Sally	$	14,306	$	14,074	$	27,738	$	28,732
BSG		9,006		9,765		17,680		18,252
Unallocated		1,968		1,520		3,494		3,940
Total	$	25,280	$	25,359	$	48,912	$	50,924

Schedule of disaggregation of segment revenues by merchandise category and sales channels

Disaggregation of net sales by segment

The following tables disaggregate our segment revenues by merchandise category.


	Three Months Ended March 31,						Six Months Ended March 31,
Sally	2026			2025			2026			2025
Hair color		45.1	%		42.3	%		44.0	%		41.3	%
Hair care		21.5	%		23.6	%		21.8	%		23.7	%
Styling tools and supplies		16.1	%		16.2	%		16.7	%		16.8	%
Nail		9.9	%		10.0	%		9.9	%		10.0	%
Skin and cosmetics		7.1	%		7.4	%		7.3	%		7.6	%
Other beauty items		0.3	%		0.5	%		0.3	%		0.6	%
Total		100.0	%		100.0	%		100.0	%		100.0	%


	Three Months Ended March 31,						Six Months Ended March 31,
BSG	2026			2025			2026			2025
Hair color		43.8	%		42.8	%		42.7	%		41.4	%
Hair care		40.8	%		40.9	%		41.8	%		41.9	%
Styling tools and supplies		10.1	%		10.5	%		10.1	%		10.6	%
Skin and cosmetics		2.9	%		3.4	%		3.2	%		3.6	%
Nail		2.1	%		2.2	%		2.0	%		2.3	%
Other beauty items		0.3	%		0.2	%		0.2	%		0.2	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

The following tables disaggregate our segment revenue by sales channels:


	Three Months Ended March 31,						Six Months Ended March 31,
Sally	2026			2025			2026			2025
Company-operated stores		90.3	%		91.8	%		90.4	%		92.0	%
E-commerce		9.7	%		8.2	%		9.6	%		8.0	%
Total		100.0	%		100.0	%		100.0	%		100.0	%


	Three Months Ended March 31,						Six Months Ended March 31,
BSG	2026			2025			2026			2025
Company-operated stores		69.3	%		69.3	%		69.3	%		69.4	%
E-commerce		14.9	%		13.9	%		14.8	%		14.0	%
Salon business consultants		8.4	%		9.3	%		8.5	%		9.5	%
Franchise stores		7.4	%		7.5	%		7.4	%		7.1	%
Total		100.0	%		100.0	%		100.0	%		100.0	%