Sally Beauty Holdings' E-Commerce Sales Surge to 11% of Net Sales: Can the Trend Continue?

Sally Beauty Holdings' e-commerce sales rose 11% of net sales in Q3, reaching $99 million. Digital growth is driven by strategic initiatives, marketplace expansion, and targeted marketing. Despite challenges such as value-focused consumers, the company's e-commerce channel appears well-positioned to drive incremental growth. Ulta Beauty, Estée Lauder, and Coty also continue to enhance their digital capabilities.

Sally Beauty Holdings (NYSE: SBH), a major distributor and retailer of professional beauty supplies, reported its Q3 FY2025 earnings on August 5, 2025. The company delivered a solid earnings beat, with adjusted earnings per share (EPS) reaching $0.51, outperforming the analyst estimate of $0.42 (non-GAAP). Revenue (GAAP) was $933 million, just above the $929.13 million GAAP consensus but down 1.0% from the same quarter last year. The quarter showed the company's continued discipline on cost control, operational efficiencies, and a growing digital presence, but topline growth remained under pressure amid softer sales in its main segments and ongoing store count reductions [1].

One notable highlight was the significant growth in e-commerce sales, which rose 11% of net sales in Q3, reaching $99 million. This digital growth is driven by strategic initiatives, marketplace expansion, and targeted marketing. Despite challenges such as value-focused consumers, the company's e-commerce channel appears well-positioned to drive incremental growth. This performance aligns with the broader trend of beauty retailers enhancing their digital capabilities, as seen with competitors like Ulta Beauty, Estée Lauder, and Coty [1].

Douglas, another major beauty retailer, reported a smaller than expected drop in its quarterly core profit, boosted by higher sales and tight cost management. Adjusted earnings before interest, taxation, depreciations and amortisation (EBITDA) fell 2.9% to €158.2 million ($185.1 million) in Douglas' fiscal third quarter, above the average estimate of €143.8 million from analysts polled by Vara Research. The company's shares nearly 9% higher in early Frankfurt trade following the positive results [2].

Sally Beauty's Q3 results underscore the importance of digital transformation in the beauty industry. As consumers increasingly shift towards online shopping, companies that can effectively leverage digital channels are better positioned to navigate market challenges and drive growth. With continued investment in its e-commerce platform and strategic initiatives, Sally Beauty Holdings is well-positioned to capitalize on this trend.

References:
[1] https://www.sharewise.com/us/news_articles/Sally_Beauty_SBH_Q3_EPS_Jumps_21_TheMotleyFool_20250806_0040
[2] https://www.esmmagazine.com/retail/beauty-retailer-douglas-tops-market-forecasts-for-q3-results-294219