Sally Beauty Holdings reported a resilient start to fiscal 2025 with consolidated net sales of $937.9 million, up 0.7% year over year, and a favorable mix of margin expansion and profitability despite 60 basis points of FX headwinds. The company benefited from continued momentum across both segments: Sally Beauty (retail) and Beauty Systems Group (BSG, professional distribution), with consolidated comparable sales rising 1.6% and e-commerce representing 11% of net sales ($99 million), up 9% year over year. Sally Beauty net sales rose 0.4% to $525 million, led by color and digital marketplaces, while BSG net sales climbed 1.1% to $412 million, supported by new product introductions and expanded distribution. Gross margin expanded 60 basis points to 50.8%, driven by reduced shrink and supply-chain efficiencies, and operating margin rose 50 basis points to 8.4%, with adjusted EBITDA margin at 11.7%. The quarter benefited from strong cash generation ( operating cash flow $34 million; free cash flow $57 million) and balance-sheet discipline, including debt reduction and a modest share repurchase. Management reaffirmed full-year guidance, signaling confidence in mid-single-digit earnings growth supported by ongoing margin expansion and operating leverage, while highlighting FX headwinds and a cautious near-term consumer environment. The company reiterated its long-term growth algorithm: low single-digit sales growth with mid- to high-single-digit operating profit growth and a return to a low-double-digit operating margin. Investment highlights include the Fuel for Growth program targeting ~$70 million in cumulative run-rate benefits in FY2025 (and up to $120 million from 2024â2026), Sally brand Refresh and LCOD initiatives, and K18 debut through BSG in April 2025, all expected to bolster top-line growth and margin trajectory.