1. The Home Depot for professional stylists and serious DIY beauty enthusiasts.

2. Ulta Beauty, but with a stronger emphasis on professional salon supplies and at-home hair color.

3. A wholesale club like Costco, but exclusively for professional hairdressers and cosmetologists.

• Hair Care Products: Sally Beauty offers a comprehensive range of shampoos, conditioners, hair colors, and styling products for professional and personal use.
• Nail Care Products: The company provides an assortment of nail polishes, gels, acrylics, and tools essential for manicures and pedicures.
• Skin Care Products: Customers can find various cleansers, moisturizers, treatments, and cosmetics tailored for different skin types and concerns.
• Hair Styling Tools & Appliances: Sally Beauty sells professional and consumer-grade hair dryers, curling irons, flat irons, clippers, and other styling devices.
• Beauty Accessories & Professional Supplies: This category includes items like brushes, combs, hair extensions, and essential salon supplies for licensed beauty professionals.

Sally Beauty (SBH) primarily serves the following categories of customers:

• DIY Consumers/General Public: These are individual consumers who purchase beauty products, tools, and supplies for their personal use. This includes a wide range of products for hair care, nail care, skincare, and cosmetics. They primarily shop at Sally Beauty Supply stores.
• Licensed Beauty Professionals: This category includes individual hair stylists, nail technicians, estheticians, and other licensed beauty professionals. They purchase professional-grade products, equipment, and tools for use in their services to clients. They shop at both Sally Beauty Supply and, more extensively, at CosmoProf stores, which require a professional license for entry and purchase.
• Small Salon Owners/Operators: These are individuals or small business owners who operate independent beauty salons, spas, or barbershops. They procure supplies, inventory, and professional products from Sally Beauty and CosmoProf for their salon's operations and to offer services to their clientele. This category often overlaps with licensed beauty professionals but emphasizes the business procurement aspect.

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Denise Paulonis, President and Chief Executive Officer

Denise Paulonis has served as the President and Chief Executive Officer of Sally Beauty Holdings since October 2021. Prior to this role, she was the Executive Vice President and Chief Financial Officer of Sprouts Farmers Market Inc. from 2020 to 2021. From August 2016 to January 2020, Ms. Paulonis was the Chief Financial Officer and Executive Vice President at The Michaels Companies, where she also held senior finance positions including Senior Vice President of Finance and Treasurer, and Vice President of Corporate Finance, Investor Relations, and Treasury. Her career also includes various senior-level positions at PepsiCo from 2009 to 2014, such as Vice President of Financial Planning and Analysis for Frito Lay, Vice President of Finance and Strategy for PepsiCo U.S. Sales, and Vice President of Global Corporate Strategy. She also has experience with McKinsey & Company and Bank of America. Ms. Paulonis has served as an Independent Director at Conagra Brands, Inc. since 2022.

Marlo Cormier, Senior Vice President and Chief Financial Officer

Marlo Cormier was appointed as Senior Vice President and Chief Financial Officer of Sally Beauty Holdings in November 2020. She initially joined Sally Beauty in April 2020 as Senior Vice President of Finance and Chief Accounting Officer. Before her tenure at Sally Beauty, Ms. Cormier was the Senior Vice President, Corporate Finance and Chief Accounting Officer at Fossil Group Inc. from 2013 to 2020, where her responsibilities included general accounting, SEC reporting, financial planning and analysis, taxes, and treasury. From 2001 to 2013, she held various executive roles at Callaway Golf, including Vice President and Chief Accounting Officer. Ms. Cormier began her career as a Manager in Deloitte's Accounting and Audit Services group, where she worked for seven years.

John Goss, President of Sally Beauty Supply

John Goss has been the President of Sally Beauty Supply since November 2020. Prior to this, he served as Group Vice President and Head of Stores and Operations for Sally Beauty Supply, where he oversaw over 2,900 retail stores and led the implementation of Ship-From-Store (SFS) and Buy Online/Pickup in Store (BOPIS). Before joining Sally Beauty Holdings in 2016, Mr. Goss held consecutive roles as Vice President of Operations and then Vice President of Transformation Management Office for Signet Jewelers. He has also held various leadership positions at Zales Jeweler, T-Mobile, Gap Inc., and L Brands.

Mark Spinks, President of Beauty Systems Group LLC

Mark Spinks has served as the President of Beauty Systems Group LLC since July 2015.

Mary Beth Edwards, Senior Vice President, Chief Information Officer and Chief Transformation Officer

Mary Beth Edwards was appointed Senior Vice President, Chief Information Officer, and Chief Transformation Officer in November 2020. Prior to this role, she was the Group Vice President, Global Sourcing of Sally Beauty Holdings since April 2019.

Increased competition from online marketplaces aggressively expanding their offerings of professional beauty supplies, directly targeting both salons and general consumers.

The accelerating trend of beauty brands leveraging direct-to-consumer (DTC) channels and rapidly growing social commerce platforms to sell products directly, bypassing traditional retail and distribution channels.

Sally Beauty (symbol: SBH) operates in various segments of the beauty industry, primarily focusing on hair care, hair color, nail care, skin care, and professional beauty supplies and services. The addressable markets for their main products and services can be sized as follows:

• Global Cosmetics Market: The global cosmetics market, which encompasses products for skin, hair, and nails, was valued at approximately USD 419.8 billion in 2024 and is estimated to reach USD 629.7 billion by 2033.

• North America Beauty and Personal Care Products Market: This market, which includes cosmetics, skin, hair, and nail products, was valued at USD 170.33 billion in 2024 and is projected to reach USD 247.30 billion by 2033.

• U.S. Cosmetics Market: The U.S. cosmetics market alone was valued at USD 80 billion in 2023.

• Global Hair Care Market: The global hair care market was valued at USD 106.91 billion in 2024 and is anticipated to grow to USD 213.47 billion by 2032.

• U.S. Hair Care Market: The U.S. hair care products market size was estimated at USD 20.84 billion in 2024 and is expected to grow to USD 30.06 billion by 2030.

• Global Professional Beauty Services Market: This market, which includes services for hair care, skin care, and nail care, was valued at USD 221.09 billion in 2024 and is projected to grow to USD 378.47 billion by 2032.

• U.S. Professional Beauty Services Market: The professional beauty services market in the U.S. is expected to grow significantly, reaching USD 75.87 billion by 2032.

Sally Beauty Holdings (SBH) is focusing on several key strategies to drive future revenue growth over the next two to three years, primarily through enhancing customer engagement, expanding product offerings, and modernizing its retail presence. These drivers are evident in recent earnings releases, transcripts, and analyst commentary:

1. Digital Marketplace Expansion and E-commerce Growth: Sally Beauty is prioritizing the expansion of its digital presence and e-commerce capabilities. The company has reported strong growth in e-commerce sales, with digital marketplace initiatives driving customer engagement and sales. For example, global e-commerce sales increased to $99 million, representing 11% of total net sales, with specific growth of 21% year-over-year in Q2 2025 and 15% in Q3 2025 in the Sally Beauty segment. This strategy aims to attract new customers and facilitate more profitable sales growth through platforms like Amazon, DoorDash, Instacart, and Walmart.

2. Product Innovation and Growth of High-Margin Owned Brands: The company plans to accelerate product innovation and grow its high-margin owned brands. Management has indicated a consistent pipeline of innovation across both owned and third-party brands for fiscal 2025. This includes new product launches in categories such as hair color, bonding, nails, and appliances, along with expanded partnerships like Sauce Beauty and the introduction of new products like the Ion 8-in-1 Airstyler.

3. Store Refresh Programs and Modernization: Sally Beauty is investing in store refresh programs designed to modernize locations and enhance the in-store shopping experience. These initiatives aim to transform Sally Beauty into a more dynamic beauty destination that inspires customer discovery and joy. Pilot programs have been initiated in markets like Orlando to test various levels of store investment. The company expects these efforts to improve foot traffic and align with evolving consumer preferences.

4. Customer-Centric Initiatives: Efforts to enhance customer centricity are expected to drive growth by improving customer engagement and acquisition. Key initiatives include the "Licensed Colorist on Demand" service, which provides high-touch service and professional consultation, and the "Happy Beauty Co." concept, which is being evaluated for progress. These programs aim to attract new customers, with "Licensed Colorist on Demand" bringing in 45% new customers to the brand.

5. Expanded Distribution and Brand Innovation within Beauty Systems Group (BSG) Segment: The Beauty Systems Group (BSG) segment is expected to see continued revenue growth through expanded distribution and new brand innovation. This segment has demonstrated consistent sales growth, driven by widening its distribution channels and introducing new professional products.

Share Repurchases

• Sally Beauty Holdings has an ongoing share repurchase program, originally authorized for $1.0 billion in 2017.
• The program was extended in May 2025 to continue until September 30, 2029, with approximately $501.1 million of authorization remaining.
• The company repurchased $60.0 million in fiscal year 2024 and $15.0 million in fiscal year 2023. In Q2 fiscal year 2025, $10 million in shares were repurchased, and $13 million was deployed to repurchase 1.5 million shares in Q3 fiscal year 2025.

Share Issuance

• Information available primarily indicates a reduction in shares outstanding due to repurchases, with no significant dollar amount of shares issued noted over the last 3-5 years.

Inbound Investments

• No information is available regarding large inbound investments made in Sally Beauty by third-parties over the last 3-5 years.

Outbound Investments

• In fiscal year 2024, Sally Beauty acquired assets from Exclusive Beauty Supplies in Florida for $7.5 million.

Capital Expenditures

• Capital expenditures were approximately $100 million for the full fiscal year 2024.
• Expected capital expenditures for fiscal year 2025 are projected to be $95 million.
• The primary focus of capital expenditures includes strategic initiatives like digital expansion, store refresh programs, and IT capabilities, as well as investments in end-to-end supply chain systems and processes.