Overview
- Fiscal Q1 sales reached $943 million with adjusted diluted EPS of $0.48, up 12% and above expectations.
- Adjusted gross margin expanded about 50 basis points to 51.3%, driven by higher product margins and cost actions.
- Full‑year FY26 adjusted EPS outlook now stands at $2.02–$2.10 with the sales outlook reaffirmed near $3.74 billion.
- Global e‑commerce rose 11% to $111 million, or 12% of sales, with Sally segment online revenue up 20% to $50 million and BSG up 4% to $60 million; Sally U.S. & Canada comps increased 1.3%.
- Operating cash flow of $93 million and free cash flow of $57 million funded a $20 million debt paydown and $21 million in buybacks, leaving net leverage around 1.5%, as management noted early‑quarter demand pressure linked to government shutdowns with improvement in December.