Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.) · NYSE:SBH
Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.) — Sally Beauty Holdings — Q3 FY2026 Earnings Presentation
47 slides from Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.)'s earnings presentation, Jun 30, 2026
Slide 1: Sally Beauty Holdings, Inc.
Sally Beauty Holdings, Inc. INVESTOR RELATIONS PRESENTATION as of June 30, 2026
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements and Non -GAAP Financial Measures Statements in this presentation that are not purely historical facts or that depend upon future-looking events atements st may bewithin forward the meaning of section 27A of the Securities Act of 1933, as amended, and
Slide 3: Company overview
Company overview 3
Slide 4: Sally Beauty Holdings: A Differentiated Beauty Company
Sally Beauty Holdings: A Differentiated Beauty Company A unique Beauty company that spans consumer the and professional markets Over4,300 stores globally; supported omniby -channel capabilitiesthat meet the customer where they are Highly resilientbusinesses against macro headwinds Largest sourceof p
Slide 5: Sally Beauty Holdings FY2025 Financials at a Glance
Sally Beauty Holdings FY2025 Financials at a Glanc $3.7B 51.7% $448M 8.9% Net Sales +80 bps +1.4% +40 bps +0.3% Comp (1) Adjusted Gross Margin (1) Adjusted EBITDA (1) Adjusted Operating Margin $2.1BSally $1.6BBSG $216M $1.90 45% 1.6x +49% +12% FCF conversion Net Debt Leverage (1) Free Cash Flow (1)
Slide 6: Sally Beauty Holdings YTD FY2026 Financials
Sally Beauty Holdings YTD FY2026 Financials $2.8B 52.2% $333M 8.6% Net Sales +60 bps +0.8% -10 bps +0.4% Comp (1) Adjusted Gross Margin (1) Adjusted EBITDA (1) Adjusted Operating Margin $1.6BSally $1.2BBSG $163M $1.47 49% 1.4x +18% +9% FCF conversion Net Debt Leverage (1) Free Cash Flow (1) Adj. EPS
Slide 7: A Unique Portfolio
A Unique Portfolio The Sally Beauty Holdings portfolio spans across the consumer and professional (pro) Beauty m providing access to the entire Beauty landscape ~ 3,000Stores Globally* ~ 1,300Stores US/Canada 10%Ecommerce Penetration 15%Ecommerce Penetration ~550Full-Service Sales Consultants 7 * Ap
Slide 8: Services Two Distinct but Interconnected Market
Services Two Distinct but Interconnected Market Sally services the traditional Beauty market while Beauty Systems Group services the supply needs that suppo the large Beauty Services Market 61% of women color their hair at least once a year At Home Salon $85B $78B Consumer Beauty Addressable 25% 25%
Slide 9: Sally Is a Consumer Beauty Retailer
Sally Is a Consumer Beauty Retailer Hair color Curated High consumer at the core assortment awareness • Market leader for -quality pro • 2/3 of transactions are- multi • ~ 95% of Beauty consumers color for home-use providing category know Sally over 30 color brands with over 1200 shades of color • O
Slide 10: Beauty Systems Group (BSG) Is the Largest Beauty Distributor in North America
Beauty Systems Group (BSG) Is the Largest Beauty Distributor in North America Beauty That BSG is Driving high value Services is a uniquely positioned and low churn $78B industry to service customer dynamics • Industry growth focused on • Expertise and education • Average annual spend per higher end,
Slide 11: Scale and Expertise through Shared Capabilities
Scale and Expertise through Shared Capabilities Complementary businesses that are better together Brand & Deep Shared Integrated Talent Manufacturer Beauty Technology & Supply Development Relationships Expertise Analytics Chain SBH’s enduring relationships Each category is grounded in The SBH techno
Slide 12: Built to win
Built to win
Slide 13: Slide 13
Slide 14: Sally Differentiators
Sally Differentiators Sally is the number one provider of professional –quality,-home at hair color amid a competitive Beauty category Convenient Ways Loyal, Diverse Multi-Category Extensive Own to Shop Customer Base Exploration Brand Portfolio Customers can explore in store, ~ 80% of sales from 15M
Slide 15: Sally Pro-Quality Portfolio
Sally Pro-Quality Portfolio 7% ● The Sally portfolio of categories drives resilience and exploration with -thirds twoof 10% transactions being -category multi 43% ● Pro-quality hair color is the core of the Sally Beauty business - empowering customers 17% with everything they need to color their hai
Slide 16: Sally Own Brands
Sally Own Brands Ion bondbar The Sally portfolio of Own Brands provides exceptional quality at affordable prices across the hair color, hair care, styling tools, salon supplies, and beauty accessories categories. The Own Brands portfolio features award -winning products recognized by Good Strawberry
Slide 17: Sally Ignited: Elevating the Brand
Sally Ignited: Elevating the Brand • Elevating the Sally brand expression across The all customer touchpoints What • Testing category and brand expansion • Higher browsing time The • ATV and UPT in test stores outperforming Impact fleet • Growth in key cross -category baskets • First 30 stores compl
Slide 18: TM
TM 18
Slide 19: Beauty Systems Group Differentiators
Beauty Systems Group Differentiators BSG is the largest pro Beauty distributor to salons and stylists across US and Canada with a strongine moat ss built around Convenience for the High Value and Low Largest Assortment of Strong Relationship Busy Stylist Churn Customer Base Professional Brands with
Slide 20: BSG Portfolio - Color and Care at the Core
BSG Portfolio - Color and Care at the Core 2% 4% 10% ● Over 80% of BSG’s business is providing licensed stylists with professional hair color, 42% hair care, and salon supplies at wholesale prices ● Expanded categories like nails and skin appeal to wider licensed base 42% 20
Slide 21: BSG's Extensive Assortment
BSG’s Extensive Assortment With a massive assortment of the best brands in pro Beauty, stylists seek BSG -and-true out for favorites their tried and innovat ion 21
Slide 22: Experts at Servicing a Complex Customer Base
Experts at Servicing a Complex Customer Base 100% of BSG’s Customer Basehas a ~70% of Stylists Work Independent Stylists manage their businesses Professional License Independently end-to-end The operating model and extensive experience enables BSG service highly fragmented markets of licensed profes
Slide 23: Growth strategy
Growth strategy
Slide 24: An Insight-Driven Growth Strategy
An Insight-Driven Growth Strategy Understand & Differentiate Unlock & Harvest Accelerate New ActivateCustomers with Assortment Digital Value Growth Pathways Efficiency & Optimization 24
Slide 25: Understand & Activate Customers
Understand & Activate Customers • Expandpersonalization and customer journeys • Elevatemarketing partnerships with brands • Acceleratecustomer acquisition through LCOD, paid search, social, PR, and influencers • Drivemarketing effectiveness through media mix model and enhanced brand messaging 25
Slide 26: Differentiate with Assortment
Differentiate with Assortment • Innovatewith new brands and products • Drivenew territory and channel expansions • Differentiate with Own Brands 26
Slide 27: Unlock & Harvest Digital Value
Unlock & Harvest Digital Value • Leveragespeed to market to accelerate web • Winthrough the app • Growmarketplaces and leverage omni capabilities • Deepenpro customer engagement 27
Slide 28: Accelerate New Growth Pathways
Accelerate New Growth Pathways • Roll outSally Ignited to an additional 50 stores in 2026; building a path to broader expansion • Expandpresence in pro Skin & Spa distribution • Continue innovating Happy Beauty Co. concept 28
Slide 29: A New Venture: Happy Beauty
A New Venture: Happy Beauty Opportunity Leverage SBH’s extensive capabilities across product, operations, sourcing and supply chain to bring something truly unique to the market Environment An accessible, fun and expressive environment offering shoppers a premium Beauty shopping experience -quality
Slide 30: Underpinned by an increasingly efficient operating model
Underpinned by an increasingly efficient operating model • ContinueFuel for Growth activities • Improveinventory efficiencies and turn • Optimize and modernizesupply chain SBH’s North Texas Distribution Center 30
Slide 31: Financials
Financials 31
Slide 32: Historical Operating Performance
Historical Operating Performance Following a period of optimization and investment, fiscal 2025 was a meaningful financial step forward Total Sales($M)(1) (2) Adj. Gross Margin (2) Adj. Operating Margin (2) Adj. EPS($/share) 32 1. Store base decreased over 350 stores (>7%) from the start of FY23; 2.
Slide 33: Positive Earnings Momentum
Positive Earnings Momentum Resilient business model delivering strong operating profit and EPS growth Tracking Resilience Adj. EPS % Growth 20% 20% 19% 13% 10% 12% 10% 10% 8% 5% 0% -8% -10% -15% -20% -25% -30% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Ad
Slide 34: Consistent Cash Flow Generator
Consistent Cash Flow Generator Efficient operating model delivers healthy EBITDA to cash flow conversion creating ample financial flexibility Improving cash flow conversion to free cash flow as algorithm soli Strong and consistent generator of cash flow from operations and Fuel For Growth initiative
Slide 35: Fuel for Growth Driving Efficiency
Fuel for Growth Driving Efficiency Fuel for Growth is driving efficiencies to free up capital for reinvestment in the business and operating margin ex FY25 Fuel for Growth = $74M Total Fuel for Growth Gross Margin SG&A $120M Through the $74M Bottom Line Reinvestment $42M $32M $28M ● Gross margin -ra
Slide 36: Healthy Balance Sheet
Healthy Balance Sheet Leverage ratio at the low end of target range with strong liquidity position Total Debt ($M) Long-Term Debt Maturities ($M) $1,200 $1,156 $600 $1,100 $1,078 $994 2.4 $1,000 2.2x 2.2 $900 2.1x $875 $400 2.0x $815 2.0 $800 Target net 1.8 Sr. Notes leverage range: $700 1.5x-2.0x 1
Slide 37: Long-Term Financial Algorithm
Long-Term Financial Algorithm Three-year financial algorithm positioned to drive consistent double digit EPS growth supported by ategy robust capital alloc 1-3% 50%+ 3-5% 10%+ Low Single -digit Strong Gross Margin Adjusted Operating EPS Growth with at Sales Growth Profile Earnings Growth Least 50% o
Slide 38: Balanced Capital Allocation Strategy
Balanced Capital Allocation Strategy Targeted capital allocation strategy provides ample room to invest for growth while also returning value to stake Maintain strong liquidity with $100M+ of cash and $500M line of credit Invest for growth historical capex of approx. $100M with room to increase for
Slide 39: Management team
Management team
Slide 40: Experienced Management Team
Experienced Management Team Denise Paulonis Adrianne Lee John Goss Mark Spinks Scott Sherman President & SVP & President of President of SVP & Chief Legal Chief Executive Officer Chief Financial Officer Sally Beauty Supply Beauty Systems Group & Human Resources Officer Olivier Badezet Joe Bowe Bryan
Slide 41: Key takeaways
Keytakeaways
Slide 42: Key Takeaways
Key Takeaways Two complimentary business units that are stronger together Resilient business model with high replenishment core Poised for sustainable growth with meaningful new growth ideas in development Strong cash flow generation and balanced capital allocation strategy Experienced management te
Slide 43: Appendix
Appendix 43
Slide 44: Adjusted GM, Operating Margin & EPS Reconciliation
Adjusted GM, Operating Margin & EPS Reconciliation Adjusted Gross Margin Reconcilliation Adjusted Operating Margin Reconcilliation FY23 FY24 FY25 FY23 FY24 FY25 Sales $ 3,728.1 $ 3,717.0 $ 3,701.4 Operating Earnings $ 325.0 $ 282.7 $ 327.8 Operating Margin 8.7% 7.6% 8.9% Cost of Products Sold $ 1,82
Slide 45: Quarterly Adj EPS & Op. Margin Reconciliation
Quarterly Adj EPS & Op. Margin Reconciliation Adjusted Net Earnings and Adjusted Net Earnings Per Share Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Net Earnings (GAAP) $ 50.3 $ 40.9 $ 50.8 $ 42.6 $ 38.4 $ 29.2 $ 37.7 $ 48.1
Slide 46: EBITDA & FCF Reconciliation
EBITDA & FCF Reconciliation Cash Flow Reconciliation FY22 FY23 FY24 FY25 FY26 YTD Cash Flow from Operations $ 156.5 $ 249.3 $ 246.5 $ 274.8 $ 247.5 Less: Capital Expenditures $ 99.3 $ 90.7 $ 101.1 $ 102.1 $ 84.3 Plus: Sales of Property & Equipment $ - $ - $ - $ 43.6 $ - Free Cash Flow $ 57.2 $ 158.6
Slide 47: Thank you
Thankyou 47
Sally Beauty Holdings — Q3 FY2026 Earnings Presentation on 6ix