Sally Beauty to Renovate 30 Stores and Save $120 Million

Driving Efficiency With $120 Million Savings Target At the heart of Sally Beauty’s transformation is its Fuel for Growth program, which aims to optimize the company’s cost structure by driving operational efficiencies across the board.

This includes tightening the supply chain, deepening vendor partnerships, and streamlining the company’s SKU assortment. According to B Denise Paulonis, these measures are expected to yield an additional $45 million in run-rate savings during fiscal 2026, with about two-thirds flowing through gross margin improvements.

These efforts have already contributed to a 100-basis-point expansion in gross margin to 52.2% and a solid $275 million in operating cash flow for the latest fiscal year. Management continues to forecast consolidated net sales between $3.71 billion and $3.77 billion in fiscal 2026, expecting 1–1.6% growth.

Store and Brand Modernization The Sally Ignited initiative, which represents a significant investment in the customer experience, goes beyond cost control by reinvigorating both the digital and physical retail environments…