Sally Beauty E-Commerce Rises 11%: Is Double-Digit Growth Sustainable?

Sally Beauty Holdings, Inc. SBH witnessed strong performance in the global e-commerce market in the first quarter of 2026. The company reported 11% growth in global e-commerce, with sales reaching $111 million and representing nearly 12% of total net sales. This expansion was largely driven by the Sally segment, where e-commerce sales increased 20% to $50 million. Within this, Sally U.S. and Canada posted particularly strong momentum, with e-commerce rising 28% during the quarter. In comparison, the Beauty Systems Group (“BSG”) segment recorded a more moderate 4% increase, generating $60 million in e-commerce sales.

With e-commerce momentum across both Sally and BSG segments, the company is focused on strengthening digital capabilities to drive higher engagement and conversion. Sally saw broad-based category growth, supported by its marketplace strategy. The ongoing Sally app upgrade aims to enhance user experience and reduce friction. Key improvements include clearer coupon visibility, better loyalty transparency and a more efficient search function, making product discovery and value recognition easier and actionable for customers.

The company introduced Apple Pay to streamline checkout at BSG, along with features such as “inventory near me” and a favorites category to help stylists quickly find frequently purchased items. Upcoming app updates will further enhance user experience, enable faster payments and add capabilities in education, AI and personalization, with rollout to stylists starting this spring.

Digital initiatives like Licensed Colors on Demand (“LCOD”) play a vital role in brand marketing, driving strong economics and effective customer acquisition. LCOD-acquired customers spend twice as much in their first year, while existing users increase their annual spend by more than 25%. Strong digital initiatives and rising engagement continue to support e-commerce momentum, aided by platform enhancements and high-value customer acquisition.

The Zacks Rundown for SBH

Shares of this Zacks Rank #3 (Hold) company have gained 57.2% in the past year compared with the industry’s 11.3% growth.

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From a valuation standpoint, SBH trades at a forward price-to-earnings ratio of 6.46, lower than the industry’s average of 17.03.

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The Zacks Consensus Estimate for SBH’s current and next fiscal year earnings implies a year-over-year rise of 9% and 10.1%, respectively.

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Stocks to Consider

Some better-ranked stocks have been discussed below:

Five Below, Inc. FIVE operates as a specialty value retailer in the United States. Five Below currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 10.9% and 14.7%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 63.4%, on average.

Deckers Outdoors Corporation DECK, together with its subsidiaries, designs, markets and distributes footwear, apparel and accessories for casual lifestyle use and high-performance activities in the United States and internationally. At present, Deckers sports a Zacks Rank of 1.

The Zacks Consensus Estimate for DECK’s current fiscal-year sales and earnings indicates growth of 8.9% and 8.5%, respectively, from the year-ago figures. DECK delivered a trailing four-quarter earnings surprise of 36.9%, on average.

Kingfisher plc KGFHY supplies home improvement products and services in the United Kingdom, Ireland, France, Poland and internationally. At present, KGFHY carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for KGFHY’s current fiscal-year sales and earnings implies growth of 10.6% and 36.4%, respectively, from the year-ago figures.

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Deckers Outdoor Corporation (DECK): Free Stock Analysis Report

Sally Beauty Holdings, Inc. (SBH): Free Stock Analysis Report

Five Below, Inc. (FIVE): Free Stock Analysis Report

Kingfisher PLC (KGFHY): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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