Sally Beauty Holdings, Inc. Segments Disclosure
Our business is organized into two reportable segments: (i) Sally, a domestic and international chain of retail stores and a consumer-facing e-commerce website that offers professional beauty supplies to both salon professionals and retail customers primarily in North America, Puerto Rico, and parts of Europe and South America and, (ii) BSG, including its franchise-based business Armstrong McCall, a full service distributor of beauty products and supplies that offers professional beauty products directly to salons and salon professionals through its professional-only stores, e-commerce platforms and its own sales force in partially exclusive geographical territories in the U.S. and Canada.
The accounting policies of both of our reportable segments are the same as described in the summary of significant accounting policies contained in Note 1. Our CODM, whom we have determined to be our , regularly evaluates the performance of our reportable segments by comparing current segment operating earnings to comparable prior periods and forecasted amounts. Included within segment operating earnings, the significant expense categories below are regularly provided to the CODM.
Segment Operating Performance
The following tables summarize our results:
` |
|
Fiscal Year 2025 |
|
|||||||||
(in thousands) |
|
Sally |
|
|
BSG |
|
|
Total |
|
|||
Net Sales (a) |
|
$ |
2,094,363 |
|
|
$ |
1,607,061 |
|
|
$ |
3,701,424 |
|
Less: (b) |
|
|
|
|
|
|
|
|
|
|||
Cost of goods sold |
|
|
821,804 |
|
|
|
968,872 |
|
|
|
1,790,676 |
|
Selling, general, and administrative expenses |
|
|
945,892 |
|
|
|
441,828 |
|
|
|
1,387,720 |
|
Segment operating earnings |
|
|
326,667 |
|
|
|
196,361 |
|
|
|
523,028 |
|
|
|
|
|
|
|
|
|
|
|
|||
Unallocated expenses (c) |
|
|
|
|
|
|
|
|
195,218 |
|
||
Interest expense |
|
|
|
|
|
|
|
|
64,393 |
|
||
Earnings before provision for income taxes |
|
|
|
|
|
|
|
$ |
263,417 |
|
||
|
|
Fiscal Year 2024 |
|
|||||||||
(in thousands) |
|
Sally |
|
|
BSG |
|
|
Total |
|
|||
Net Sales (a) |
|
$ |
2,107,089 |
|
|
$ |
1,609,942 |
|
|
$ |
3,717,031 |
|
Less: (b) |
|
|
|
|
|
|
|
|
|
|||
Cost of goods sold |
|
|
849,153 |
|
|
|
977,546 |
|
|
|
1,826,699 |
|
Selling, general, and administrative expenses |
|
|
923,617 |
|
|
|
453,976 |
|
|
|
1,377,593 |
|
Segment operating earnings |
|
|
334,319 |
|
|
|
178,420 |
|
|
|
512,739 |
|
|
|
|
|
|
|
|
|
|
|
|||
Unallocated expenses (c) |
|
|
|
|
|
|
|
|
230,081 |
|
||
Restructuring |
|
|
|
|
|
|
|
|
(75 |
) |
||
Interest expense |
|
|
|
|
|
|
|
|
76,408 |
|
||
Earnings before provision for income taxes |
|
|
|
|
|
|
|
$ |
206,325 |
|
||
|
|
Fiscal Year 2023 |
|
|||||||||
(in thousands) |
|
Sally |
|
|
BSG |
|
|
Total |
|
|||
Net Sales (a) |
|
$ |
2,139,206 |
|
|
$ |
1,588,925 |
|
|
$ |
3,728,131 |
|
Less: (b) |
|
|
|
|
|
|
|
|
|
|||
Cost of goods sold |
|
|
873,523 |
|
|
|
956,428 |
|
|
|
1,829,951 |
|
Selling, general, and administrative expenses |
|
|
907,209 |
|
|
|
451,222 |
|
|
|
1,358,431 |
|
Segment operating earnings |
|
|
358,474 |
|
|
|
181,275 |
|
|
|
539,749 |
|
|
|
|
|
|
|
|
|
|
|
|||
Unallocated expenses (c) |
|
|
|
|
|
|
|
|
197,515 |
|
||
Restructuring |
|
|
|
|
|
|
|
|
17,205 |
|
||
Interest expense |
|
|
|
|
|
|
|
|
72,979 |
|
||
Earnings before provision for income taxes |
|
|
|
|
|
|
|
$ |
252,050 |
|
||
Other Segment Disclosures
(in thousands) |
|
FY2025 |
|
|
FY2024 |
|
|
FY2023 |
|
|||
Total assets (at September 30th): |
|
|
|
|
|
|
|
|
|
|||
Sally |
|
$ |
1,311,281 |
|
|
$ |
1,358,102 |
|
|
$ |
1,279,200 |
|
BSG |
|
|
1,284,559 |
|
|
|
1,324,071 |
|
|
|
1,293,157 |
|
Corporate |
|
|
275,256 |
|
|
|
110,726 |
|
|
|
152,893 |
|
Total |
|
$ |
2,871,096 |
|
|
$ |
2,792,899 |
|
|
$ |
2,725,250 |
|
|
|
|
|
|
|
|
|
|
|
|||
Payments for property and equipment: |
|
|
|
|
|
|
|
|
|
|||
Sally |
|
$ |
56,614 |
|
|
$ |
60,160 |
|
|
$ |
52,535 |
|
BSG |
|
|
22,387 |
|
|
|
31,986 |
|
|
|
30,581 |
|
Corporate |
|
|
23,144 |
|
|
|
9,019 |
|
|
|
7,626 |
|
Total |
|
$ |
102,145 |
|
|
$ |
101,165 |
|
|
$ |
90,742 |
|
|
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|||
Sally |
|
$ |
55,859 |
|
|
$ |
60,284 |
|
|
$ |
57,663 |
|
BSG |
|
|
37,101 |
|
|
|
36,778 |
|
|
|
32,362 |
|
Corporate |
|
|
6,961 |
|
|
|
12,676 |
|
|
|
12,384 |
|
Total |
|
$ |
99,921 |
|
|
$ |
109,738 |
|
|
$ |
102,409 |
|
Geographic Area Information
Certain geographic data is as follows (in thousands):
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
||||||
Net sales (for the fiscal year indicated): |
|
|
|
|
|
|
|
|
|
|
|
|
|||
United States |
|
$ |
|
3,029,089 |
|
|
$ |
|
3,026,946 |
|
|
$ |
|
3,050,334 |
|
Other countries |
|
|
|
672,335 |
|
|
|
|
690,085 |
|
|
|
|
677,797 |
|
Total |
|
$ |
|
3,701,424 |
|
|
$ |
|
3,717,031 |
|
|
$ |
|
3,728,131 |
|
Long-lived assets (as of September 30): |
|
|
|
|
|
|
|
|
|
|
|
|
|||
United States |
|
$ |
|
239,628 |
|
|
$ |
|
230,469 |
|
|
$ |
|
258,157 |
|
United Kingdom |
|
|
|
12,234 |
|
|
|
|
9,065 |
|
|
|
|
9,988 |
|
Other countries |
|
|
|
32,422 |
|
|
|
|
30,338 |
|
|
|
|
29,634 |
|
Total |
|
$ |
|
284,284 |
|
|
$ |
|
269,872 |
|
|
$ |
|
297,779 |
|
Disaggregated Revenues
The following tables disaggregate our segment revenues by merchandise category. We have reclassified certain prior year amounts to conform to current year presentation.
|
|
Fiscal Year Ended September 30, |
|
|||||||||
Sally |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Hair color |
|
|
42.5 |
% |
|
|
40.0 |
% |
|
|
39.9 |
% |
Hair care |
|
|
23.2 |
% |
|
|
24.4 |
% |
|
|
23.9 |
% |
Styling tools and supplies |
|
|
16.6 |
% |
|
|
16.8 |
% |
|
|
17.9 |
% |
Nail |
|
|
10.1 |
% |
|
|
10.3 |
% |
|
|
10.1 |
% |
Skin and cosmetics |
|
|
7.4 |
% |
|
|
7.9 |
% |
|
|
7.6 |
% |
Other beauty items |
|
|
0.2 |
% |
|
|
0.6 |
% |
|
|
0.6 |
% |
Total |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
Fiscal Year Ended September 30, |
|
|||||||||
BSG |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Hair color |
|
|
42.1 |
% |
|
|
41.0 |
% |
|
|
40.2 |
% |
Hair care |
|
|
41.8 |
% |
|
|
42.2 |
% |
|
|
42.3 |
% |
Styling tools and supplies |
|
|
10.3 |
% |
|
|
10.5 |
% |
|
|
10.6 |
% |
Skin and cosmetics |
|
|
3.4 |
% |
|
|
3.6 |
% |
|
|
3.9 |
% |
Nail |
|
|
2.3 |
% |
|
|
2.5 |
% |
|
|
2.7 |
% |
Other beauty items |
|
|
0.1 |
% |
|
|
0.2 |
% |
|
|
0.3 |
% |
Total |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
The following table disaggregates our segment revenue by sales channels:
|
|
Sally |
|
|
BSG |
|
||||||||||||||||||
|
|
Fiscal Year Ended September 30, |
|
|
Fiscal Year Ended September 30, |
|
||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
||||||
Company-operated stores |
|
|
91.8 |
% |
|
|
93.1 |
% |
|
|
93.8 |
% |
|
|
69.3 |
% |
|
|
68.4 |
% |
|
|
67.2 |
% |
E-commerce |
|
|
8.2 |
% |
|
|
6.9 |
% |
|
|
6.2 |
% |
|
|
14.0 |
% |
|
|
13.6 |
% |
|
|
13.5 |
% |
Salon business consultants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9.3 |
% |
|
|
10.6 |
% |
|
|
11.8 |
% |
Franchise stores |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.4 |
% |
|
|
7.4 |
% |
|
|
7.5 |
% |
Total |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 13, 2025 | Showing above |
| 2024 | Nov 14, 2024 | |
| 2023 | Nov 16, 2023 | |
| 2022 | Nov 17, 2022 | |
| 2021 | Nov 22, 2021 | |
| 2020 | Nov 24, 2020 | |
| 2019 | Nov 25, 2019 | |
| 2018 | Nov 14, 2018 | |
| 2017 | Nov 15, 2017 | |
| 2016 | Nov 15, 2016 | |
| 2015 | Nov 12, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.