Sally Beauty Holdings (SBH) Canaccord Genuity's 46th Annual Growth Conference summary

Business overview and differentiation

• Operates 4,300 stores globally across consumer and professional channels, with a resilient omni-channel model focused on hair color, which accounts for over 40% of business.

• Largest provider of professional-level hair color, serving 61% of U.S. women who color their hair, and generates strong cash flow for reinvestment and shareholder returns.

• Two main brands: Sally (retail, 3,000 stores, 10% e-commerce) and CosmoProf (pro, 1,300 stores, 15% e-commerce, 550 sales consultants), efficiently serving both DIY and professional markets.

• Captures both salon-only, DIY, and hybrid customers, enabling broad market reach and resilience.

Growth strategies and innovation

• Expanding into new categories such as fragrance, men's, nails, and skin, with fragrance now in 2,000 stores after successful pilots.

• Own brands represent 35% of retail sales, offering higher margins and exclusive value, with Ion as a $300M+ brand.

• Remodeling stores under the "Sally Ignited" concept to enhance customer experience, increase dwell time, and drive higher comps.

• Digital initiatives include Licensed Colorist OnDemand (5,200 consultations/week), new apps, and strong marketplace partnerships.

• COLORfest and targeted marketing drive new customer acquisition, up 6% last quarter.

Professional channel and category expansion

• CosmoProf is the largest U.S. distributor to pro stylists, with sticky, high-value customers averaging $800/year.

• 84% of pro business is hair color and care; expanding into pro skin and spa with brands like Image and Matter of Fact, now in 500 stores and showing high double-digit growth.

• Pro customers must be licensed, creating a defensible moat and fostering deep engagement through education and business support.

• Recent marketing targets estheticians, complemented by mainstream skincare brands.