Sally Beauty (SBH) 10-Q 5 Feb 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2018	Jan. 31, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	Sally Beauty Holdings, Inc.
Entity Central Index Key	1,368,458
Document Type	10-Q
Document Period End Date	Dec. 31, 2018
Trading Symbol	SBH
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		120,550,819
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 102,771	$ 77,295
Trade accounts receivable, net	43,649	48,417
Accounts receivable, other	48,127	42,073
Inventory	982,497	944,338
Other current assets	40,819	42,960
Total current assets	1,217,863	1,155,083
Property and equipment, net of accumulated depreciation of $624,012 at December 31, 2018 and $611,021 at September 30, 2018	303,157	308,357
Goodwill	532,601	535,925
Intangible assets, excluding goodwill, net of accumulated amortization of $135,049 at December 31, 2018 and $132,724 at September 30, 2018	69,601	72,698
Other assets	21,392	25,351
Total assets	2,144,614	2,097,414
Current liabilities:
Current maturities of long-term debt	5,500	5,501
Accounts payable	307,487	303,241
Accrued liabilities	157,144	180,287
Income taxes payable	14,580	2,144
Total current liabilities	484,711	491,173
Long-term debt	1,768,306	1,768,808
Other liabilities	26,969	30,022
Deferred income tax liabilities, net	79,359	75,967
Total liabilities	2,359,345	2,365,970
Stockholders’ deficit:
Common stock, $0.01 par value. Authorized 500,000 shares; 120,541 and 120,145 shares issued and 120,041 and 119,926 shares outstanding at December 31, 2018 and September 30, 2018, respectively	1,200	1,199
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued
Additional paid-in capital	4,802
Accumulated deficit	(114,037)	(179,764)
Accumulated other comprehensive loss, net of tax	(106,696)	(89,991)
Total stockholders’ deficit	(214,731)	(268,556)
Total liabilities and stockholders’ (deficit) equity	$ 2,144,614	$ 2,097,414

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Statement Of Financial Position [Abstract]
Property and equipment, accumulated depreciation (in dollars)	$ 624,012	$ 611,021
Intangible assets, excluding goodwill, accumulated amortization (in dollars)	$ 135,049	$ 132,724
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, Authorized shares	500,000,000	500,000,000
Common stock, shares issued	120,541,000	120,145,000
Common stock, shares outstanding	120,041,000	119,926,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, Authorized shares	50,000,000	50,000,000
Preferred stock, shares issued	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Net sales	$ 989,453	$ 994,964
Cost of goods sold	508,748	508,335
Gross profit	480,705	486,629
Selling, general and administrative expenses	366,987	371,286
Restructuring charges	3,980	5,210
Operating earnings	109,738	110,133
Interest expense	24,489	24,016
Earnings before provision for income taxes	85,249	86,117
Provision for income taxes	19,522	2,853
Net earnings	$ 65,727	$ 83,264
Earnings per share:
Basic	$ 0.55	$ 0.65
Diluted	$ 0.54	$ 0.65
Weighted average shares:
Basic	119,989	127,784
Diluted	120,979	128,645

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 65,727	$ 83,264
Other comprehensive loss:
Foreign currency translation adjustments	(13,463)	(255)
Interest rate caps, net of tax	(2,830)	(803)
Foreign exchange contracts, net of tax	(412)
Other comprehensive loss, net of tax	(16,705)	(1,058)
Total comprehensive income	$ 49,022	$ 82,206

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash Flows from Operating Activities:
Net earnings	$ 65,727	$ 83,264
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	26,506	27,090
Share-based compensation expense	3,354	3,111
Amortization of deferred financing costs	990	921
Deferred income taxes	4,597	(31,350)
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable	4,203	(2,427)
Accounts receivable, other	(6,379)	(2,008)
Inventory	(45,924)	(8,055)
Other current assets	1,745	9,105
Other assets	(187)	(290)
Accounts payable and accrued liabilities	(13,855)	3,764
Income taxes payable	12,406	10,069
Other liabilities	(2,927)	11,010
Net cash provided by operating activities	50,256	104,204
Cash Flows from Investing Activities:
Payments for property and equipment, net	(23,710)	(22,499)
Acquisitions, net of cash acquired	(451)	(9,175)
Net cash used by investing activities	(24,161)	(31,674)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	126,500	126,505
Repayments of long-term debt	(127,876)	(119,067)
Payments for common stock repurchased		(64,612)
Proceeds from exercises of stock options	1,449	275
Net cash used by financing activities	73	(56,899)
Effect of foreign exchange rate changes on cash and cash equivalents	(692)	(78)
Net increase (decrease) in cash and cash equivalents	25,476	15,553
Cash and cash equivalents, beginning of period	77,295	63,759
Cash and cash equivalents, end of period	102,771	79,312
Supplemental Cash Flow Information:
Interest paid	40,630	36,331
Income taxes paid	3,770	3,607
Capital expenditures incurred but not paid	$ 4,000	$ 2,486

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Shareholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Balance at Sep. 30, 2017	$ (363,616)	$ 1,296		$ (283,076)	$ (81,836)
Balance (in shares) at Sep. 30, 2017		129,585
Increase (Decrease) in Stockholders' Equity
Net earnings	83,264			83,264
Other comprehensive loss	(1,058)				(1,058)
Repurchases and cancellations of common stock	(64,612)	$ (39)	$ (3,386)	(61,187)
Repurchase and cancellations of common stock (in shares)		(3,848)
Share-based compensation	3,111		3,111
Stock issued for stock options	276	$ 1	275
Stock issued for stock options (in shares)		62
Balance at Dec. 31, 2017	(342,635)	$ 1,258		(260,999)	(82,894)
Balance (in shares) at Dec. 31, 2017		125,799
Balance at Sep. 30, 2018	$ (268,556)	$ 1,199		(179,764)	(89,991)
Balance (in shares) at Sep. 30, 2018	119,926	119,926
Increase (Decrease) in Stockholders' Equity
Net earnings	$ 65,727			65,727
Other comprehensive loss	(16,705)				(16,705)
Share-based compensation	3,354		3,354
Stock issued for stock options	1,449	$ 1	1,448
Stock issued for stock options (in shares)		115
Balance at Dec. 31, 2018	$ (214,731)	$ 1,200	$ 4,802	$ (114,037)	$ (106,696)
Balance (in shares) at Dec. 31, 2018	120,041	120,041

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The condensed consolidated interim financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC, although we believe that the disclosures are adequate to make the information not misleading. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2018. In the opinion of management, these condensed consolidated interim financial statements reflect all adjustments that are of a normal recurring nature and which are necessary to present fairly our consolidated financial position as of December 31, 2018 and September 30, 2018, our consolidated results of operations, consolidated comprehensive income and our consolidated cash flows for the three months ended December 31, 2018 and 2017.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Significant Accounting Policies	2. Significant Accounting Policies We adhere to the same accounting policies in the preparation of our condensed consolidated interim financial statements as we do in the preparation of our full-year consolidated financial statements. As permitted under GAAP, interim accounting for certain expenses, including income taxes, is based on full-year assumptions. For interim financial reporting purposes, income taxes are recorded based upon estimated annual effective income tax rates.

Accounting Changes and Recent A

Accounting Changes and Recent Accounting Pronouncements	3 Months Ended
	Dec. 31, 2018
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Accounting Changes and Recent Accounting Pronouncements	3. Accounting Changes and Recent Accounting Pronouncements Accounting Changes In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In connection with the adoption of ASU No. 2014-09, we now present our sales returns allowance on a gross basis rather than a net liability basis. As such, we recognize a return asset from the right to recover merchandise from customers (included in other current assets) and a return liability from the amount to be returned to the customer (included in accrued liabilities) within our consolidated balance sheets. Additionally, we now recognize revenue for our gift cards not expected to be redeemed (“gift card breakage”) within revenue in our consolidated statements of earnings. The following tables set forth the impact of adopting this standard on our condensed consolidated balance sheets and consolidated statements of earnings as of and for the three months ended December 31, 2018 (in thousands): Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Balance Sheet Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Other current assets $ 40,819 $ 38,180 $ 2,639 Accrued liabilities $ 157,144 $ 154,505 $ 2,639 Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Statement of Earnings Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 989,453 $ 989,378 $ 75 Gross Profit 480,705 480,630 75 Selling, general and administrative expenses $ 366,987 $ 366,912 $ 75 See note 4, Revenue Recognition Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases

Revenue Recognition

Revenue Recognition	3 Months Ended
	Dec. 31, 2018
Revenue From Contract With Customer [Abstract]
Revenue Recognition	4. Revenue Recognition Substantially all of our revenue is derived through the sale of merchandise. Revenue is recognized net of estimated sales returns and sales taxes. We estimate sales returns based on historical data. Additionally, we have assessed all revenue streams for principal versus agent considerations and have concluded we are the principal for all transactions. See Note 12, Business Segments Merchandise Revenues The majority of our revenue comes from the sale of products in our company-operated stores. These sales generally have one single performance obligation and the revenue is recognized at the point of sale. Discounts and incentives issued at the point of sale to entice a customer to a future purchase are treated as a separate performance obligation. As such, we allocate a portion of the revenue generated from the point of sale to each of the additional performance obligations separately using explicitly stated amounts or our best estimate using historical data. We also sell merchandise on our online platforms, to our franchisees and by using distributor sales consultants. These sales generally have one single performance obligation and revenue is recognized upon the shipment of the merchandise. Any shipping and handling fees charged to the customer are recognized as revenue, while any shipping and handling costs to get the merchandise shipped is recognized in cost of goods sold. We do extend credit to certain customers, primarily salon professionals, which generally have 30 day payment terms. Based on the nature of theses receivables, no significant financing component exists. Gift Cards The revenue from the sale of our gift cards is recognized at the time the gift card is used to purchase merchandise, which is generally within a year. Our gift cards do not carry expiration dates or impose post-sale fees. Based on historical experience, a certain amount of our gift cards will not be redeemed, also referred to as “gift card breakage.” We recognize revenue related to gift card breakage within revenue in our consolidated statements of earnings over time proportionately to historical redemption patterns. The gift cards are issued and represent liabilities of either of our operating entities, Sally Beauty Supply LLC or Beauty Systems Group LLC, which are both limited liability companies formed in the state of Virginia. Customer Loyalty Rewards We recently launched our new Sally Beauty Rewards Loyalty Program nationwide during the first quarter of fiscal year 2019 to the U.S. and Canada, which enables customers to earn points based on their status for every dollar spent on merchandise purchased in our Sally Beauty Supply (“SBS”) stores and through our sallybeauty.com sallybeauty.com The following table shows the amount of our gift card and rewards loyalty program liabilities included in accrued liabilities within our condensed consolidated balance sheets as of December 31, 2018 and September 30, 2018 (in thousands): December 31, 2018 September 30, 2018 Gift cards $ 5,766 $ 4,144 Rewards loyalty program 7,246 1,165 Total liability $ 13,012 $ 5,309 As of December 31, 2018 and 2017, we did not have any contract assets.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. Fair Value Measurements Fair value on recurring basis Consistent with the three-level hierarchy defined in ASC Topic 820, Fair Value Measurement As of December 31, 2018 As of September 30, 2018 Assets Foreign exchange contracts Level 2 $ 24 $ — Interest rate caps Level 2 4,551 8,367 Total assets $ 4,575 $ 8,367 Liabilities Foreign exchange contracts Level 2 $ 583 $ — Other fair value disclosures As of December 31, 2018 As of September 30, 2018 Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 $ 950,000 $ 882,240 $ 950,000 $ 911,490 Other long-term debt Level 2 843,995 794,054 845,383 824,951 Total debt $ 1,793,995 $ 1,676,294 $ 1,795,383 $ 1,736,441

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Dec. 31, 2018
Stockholders Equity Note [Abstract]
Accumulated Other Comprehensive Loss	6. Accumulated Other Comprehensive Loss The change in accumulated other comprehensive loss (“AOCL”) was as follows (in thousands): Foreign Currency Translation Adjustments Interest Rate Caps Foreign Exchange Contracts Total Balance at September 30, 2018 $ (91,356 ) $ 1,365 $ — $ (89,991 ) Other comprehensive loss before reclassification, net of tax (13,463 ) (2,839 ) (412 ) (16,714 ) Reclassification to net earnings, net of tax — 9 — 9 Balance at December 31, 2018 $ (104,819 ) $ (1,465 ) $ (412 ) $ (106,696 ) The tax impact for the changes in other comprehensive loss and the reclassifications to net earnings were not material.

Weighted Average Shares

Weighted Average Shares	3 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Weighted Average Shares	7. Weighted Average Shares The following table sets forth the computations of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended December 31, 2018 2017 Weighted average basic shares 119,989 127,784 Dilutive securities: Stock option and stock award programs 990 861 Weighted average diluted shares 120,979 128,645 For the three months ended December 31, 2018, options to purchase 5.7 million shares of our common stock were outstanding but not included in our computations of diluted earnings per share, since these options were anti-dilutive. For the three months ended December 31, 2017, options to purchase 5.8 million shares of our common stock were outstanding but not included in the computations of diluted earnings per share, since these options were anti-dilutive.

Share-Based Payments

Share-Based Payments	3 Months Ended
	Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Payments	8. Share-Based Payments Performance-Based Awards The following table presents a summary of the activity for our performance unit awards assuming 100% payout: Performance Unit Awards Number of Shares (in Weighted Average Value Per Share Weighted Average Remaining Vesting Term (in Years) Unvested at September 30, 2018 349 $ 20.88 1.3 Granted — — Vested (23 ) 23.45 Forfeited (66 ) 23.10 Unvested at December 31, 2018 260 $ 20.10 1.4 Service-Based Awards The following table presents a summary of the activity for our stock option awards: Number of Outstanding Options (in Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) Outstanding at September 30, 2018 5,405 $ 23.04 5.4 $ 3,161 Granted 948 18.14 Exercised (98 ) 15.90 Forfeited or expired (350 ) 25.24 Outstanding at December 31, 2018 5,905 $ 22.24 6.3 $ 1,527 Exercisable at December 31, 2018 3,870 $ 23.93 4.8 $ 1,336 The following table presents a summary of the activity for our Restricted Stock Awards: Restricted Stock Awards Number of Shares (in Thousands) Weighted Average Fair Value Per Share Weighted Average Remaining Vesting Term (in Years) Unvested at September 30, 2018 219 $ 16.98 2.1 Granted 287 18.14 Vested — — Forfeited (6 ) 17.63 Unvested at December 31, 2018 500 $ 17.66 2.3 The following table presents a summary of the activity for our Restricted Stock Units: Restricted Stock Units Number of Shares (in Thousands) Weighted Average Fair Value Per Share Weighted Average Remaining Vesting Term (in Years) Unvested at September 30, 2018 — $ — — Granted 88 18.14 Vested — — Forfeited — — Unvested at December 31, 2018 88 $ 18.14 0.7

Short-term Borrowings and Long-

Short-term Borrowings and Long-term Debt	3 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Short-term Borrowings and Long-term Debt	9. Short-term Borrowings and Long-term Debt At December 31, 2018, we had $481.4 million available for borrowing under the ABL facility, including the Canadian sub-facility. At December 31, 2018, we were in compliance with the agreements and instruments governing our debt, including our financial covenants.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	3 Months Ended
	Dec. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	10. Derivative Instruments and Hedging Activities During the three months ended December 31, 2018, we did not purchase or hold any derivative instruments for trading or speculative purposes. Designated Cash Flow Hedges Foreign Currency Forwards In December 2018, we entered into foreign currency forwards to mitigate the exposure to exchange rate changes on inventory purchases in USD by our foreign subsidiaries. At December 31, 2018, the notional amount we held through these forwards, based upon exchange rates at December 31, 2018, was as follows (in thousands): Notional Currency Notional Amount EUR $ 16,085 MXP 14,342 GBP 6,642 CAD 3,748 Total $ 40,817 We record quarterly, net of income tax, the changes in fair value related to the foreign currency forwards into AOCL. As the forwards are exercised, the realized value will be recognized into cost of goods sold based on inventory turns. Based on December 31, 2018 valuations and exchange rates, we expect to reclassify approximately $0.5 million into cost of goods sold over the next 12 months. Interest Rate Caps In July 2017, we purchased two interest rate caps with an initial aggregate notional amount of $550 million (the “interest rate caps”) to mitigate the exposure to higher interest rates in connection with our term loan B. The interest rate caps are comprised of individual caplets that expire ratably through June 30, 2023 and are designated as cash flow hedges. Accordingly, changes in fair value of the interest rate caps are recorded quarterly, net of income tax, and are included in AOCL. Over the next 12 months, we expect to reclassify approximately $0.3 million into interest expense, which represents the original value of the expiring caplets. The table below presents the fair value of our derivative financial instruments (in thousands): Asset Derivatives Liability Derivatives Classification December 31, 2018 September 30, 2018 Classification December 31, 2018 September 30, 2018 Derivatives designated as hedging instruments: Interest rate caps Other assets $ 4,551 $ 8,367 N/A $ — $ — Foreign exchange contracts Other current assets 24 — Accrued liabilities 583 — $ 4,575 $ 8,367 $ 583 $ — The effects of our derivative financial instruments on our condensed consolidated statements of earnings were not material for the three months ended December 31, 2018 and 2017.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes Our effective tax rate for the three months ended December 31, 2018 and 2017 was 22.9% and 3.3%, respectively. For the three months ended December 31, 2018, our effective tax rate was favorably impacted by lower federal statutory rates when compared to the prior year and a $3.0 million adjustment to our previously recorded transition tax on unrepatriated foreign earnings recorded as a result of the Tax Cut and Jobs Act (“U.S. Tax Reform”). For the three months ended December 31, 2017, our effective tax rate was favorably impacted by a net benefit of $22.2 million recorded as a result of the U.S. Tax Reform. For the fiscal year 2019, our U.S. federal statutory tax rate will be 21.0% compared to 24.5% for the prior fiscal year. In December 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) which provided guidance allowing registrants to record provisional amounts, during a specified measurement period, when the necessary information is not available, prepared or analyzed in reasonable detail to account for the impact of U.S. Tax Reform. As of December 31, 2018, we have completed our analysis on our provisional calculations within the measurement period provided by SAB 118. As a result, during the three months ended December 31, 2018, we identified certain immaterial adjustments to our provisional calculations, including a benefit of $3.0 million related to the In addition, the U.S. Treasury Department has recently released proposed regulations covering the one-time transition tax on unrepatriated foreign earnings, which was enacted as part of the U.S. Tax Reform. Included within the proposed regulations, certain guidance is inconsistent with our interpretation of the enacted tax law. This proposed regulation is not authoritative and is subject to change in the regulatory review process. However, if the proposed regulation is included in the final regulations as drafted, we may be required to reverse $2.5 million of benefit in the quarter the regulations become final. Beginning in our first quarter of fiscal year 2019, we are subject to taxation on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. We have made the policy election to record this tax as a period cost at the time it is incurred. The impact from GILTI was immaterial for the three months ended December 31, 2018 and is expected to be immaterial for the full fiscal year 2019.

Business Segments

Business Segments	3 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Business Segments	12. Business Segments Segment data for the three months ended December 31, 2018 and 2017 is as follows (in thousands): Three Months Ended December 31, 2018 2017 Net sales: SBS $ 580,608 $ 585,574 Beauty Systems Group ("BSG") 408,845 409,390 Total $ 989,453 $ 994,964 Earnings before provision for income taxes: Segment operating earnings: SBS $ 89,991 $ 86,594 BSG 62,330 64,565 Segment operating earnings 152,321 151,159 Unallocated expenses (38,603 ) (35,816 ) Restructuring charges (3,980 ) (5,210 ) Consolidated operating earnings 109,738 110,133 Interest expense (24,489 ) (24,016 ) Earnings before provision for income taxes $ 85,249 $ 86,117 Sales between segments, which are eliminated in consolidation, were not material during the three months ended December 31, 2018 and 2017. Disaggregation of net sales by segment SBS Three Months Ended December 31, 2018 2017 Hair color 27.5 % 26.4 % Hair care 19.9 % 20.6 % Styling tools 15.7 % 15.3 % Skin and nail care 15.1 % 14.9 % Salon supplies and accessories 7.1 % 7.1 % Multicultural products 6.5 % 6.7 % Other Beauty items 8.2 % 9.0 % Total 100.0 % 100.0 % BSG Three Months Ended December 31, 2018 2017 Hair color 38.0 % 36.8 % Hair care 33.4 % 33.6 % Skin and nail care 8.1 % 8.9 % Styling tools 3.9 % 4.7 % Other beauty items 5.8 % 5.8 % Promotional items 10.8 % 10.2 % Total 100.0 % 100.0 %

Parent, Issuers, Guarantor and

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements	3 Months Ended
	Dec. 31, 2018
Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]
Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements	13. Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Condensed Consolidating Balance Sheet December 31, 2018 (In thousands) Parent Sally Holdings and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Holdings, Inc. and Subsidiaries Assets Cash and cash equivalents $ — $ 10 $ 51,880 $ 50,881 $ — $ 102,771 Trade and other accounts receivable, net — — 60,558 31,218 — 91,776 Due from affiliates — — 2,625,695 — (2,625,695 ) — Inventory — — 751,010 231,487 — 982,497 Other current assets 699 329 27,967 11,824 — 40,819 Property and equipment, net 7 — 233,513 69,637 — 303,157 Investment in subsidiaries 1,420,037 4,117,044 374,477 — (5,911,558 ) — Goodwill and other intangible assets, net — — 457,236 144,966 — 602,202 Other assets 1,325 6,321 (4,630 ) 18,376 — 21,392 Total assets $ 1,422,068 $ 4,123,704 $ 4,577,706 $ 558,389 $ (8,537,253 ) $ 2,144,614 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 46 $ — $ 251,245 $ 56,196 $ — $ 307,487 Due to affiliates 1,615,667 924,250 — 85,778 (2,625,695 ) — Accrued liabilities 301 6,044 118,244 32,555 — 157,144 Income taxes payable 13,230 1,519 — (169 ) — 14,580 Long-term debt — 1,772,936 — 870 — 1,773,806 Other liabilities 7,629 — 15,355 3,985 — 26,969 Deferred income tax liabilities, net (74 ) (1,082 ) 75,818 4,697 — 79,359 Total liabilities 1,636,799 2,703,667 460,662 183,912 (2,625,695 ) 2,359,345 Total stockholders’ (deficit) equity (214,731 ) 1,420,037 4,117,044 374,477 (5,911,558 ) (214,731 ) Total liabilities and stockholders’ (deficit) equity $ 1,422,068 $ 4,123,704 $ 4,577,706 $ 558,389 $ (8,537,253 ) $ 2,144,614 Condensed Consolidating Balance Sheet September 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Assets Cash and cash equivalents $ — $ 10 $ 29,050 $ 48,235 $ — $ 77,295 Trade and other accounts receivable, net 4 — 53,295 37,191 — 90,490 Due from affiliates — — 2,598,681 — (2,598,681 ) — Inventory — — 714,000 230,338 — 944,338 Other current assets 2,010 111 27,422 13,417 — 42,960 Property and equipment, net 8 — 232,941 75,408 — 308,357 Investment in subsidiaries 1,368,927 4,044,669 380,166 — (5,793,762 ) — Goodwill and other intangible assets, net — — 459,348 149,275 — 608,623 Other assets 1,325 10,242 (4,797 ) 18,581 — 25,351 Total assets $ 1,372,274 $ 4,055,032 $ 4,490,106 $ 572,445 $ (8,392,443 ) $ 2,097,414 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 38 $ - $ 233,936 $ 69,267 $ — $ 303,241 Due to affiliates 1,629,411 888,141 — 81,129 (2,598,681 ) — Accrued liabilities 234 23,019 125,179 31,855 — 180,287 Income taxes payable 585 1,519 — 40 — 2,144 Long-term debt — 1,773,426 1 882 — 1,774,309 Other liabilities 10,562 — 15,250 4,210 — 30,022 Deferred income tax liabilities, net — — 71,071 4,896 — 75,967 Total liabilities 1,640,830 2,686,105 445,437 192,279 (2,598,681 ) 2,365,970 Total stockholders’ (deficit) equity (268,556 ) 1,368,927 4,044,669 380,166 (5,793,762 ) (268,556 ) Total liabilities and stockholders’ (deficit) equity $ 1,372,274 $ 4,055,032 $ 4,490,106 $ 572,445 $ (8,392,443 ) $ 2,097,414 Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended December 31, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 793,530 $ 195,923 $ — $ 989,453 Related party sales — — 669 — (669 ) — Cost of products sold and distribution expenses — — 404,040 105,377 (669 ) 508,748 Gross profit — — 390,159 90,546 — 480,705 Selling, general and administrative expenses 2,809 168 286,216 77,794 — 366,987 Restructuring charges — — 3,980 — — 3,980 Operating earnings (loss) (2,809 ) (168 ) 99,963 12,752 — 109,738 Interest expense (income) — 24,552 (1 ) (62 ) — 24,489 Earnings (loss) before provision for income taxes (2,809 ) (24,720 ) 99,964 12,814 — 85,249 Provision (benefit) for income taxes (721 ) (6,345 ) 25,683 905 — 19,522 Equity in earnings of subsidiaries, net of tax 67,815 86,190 11,909 — (165,914 ) — Net earnings 65,727 67,815 86,190 11,909 (165,914 ) 65,727 Other comprehensive loss, net of tax — (2,830 ) — (13,875 ) — (16,705 ) Total comprehensive income (loss) $ 65,727 $ 64,985 $ 86,190 $ (1,966 ) $ (165,914 ) $ 49,022 Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended December 31, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 796,532 $ 198,432 $ — $ 994,964 Related party sales — — 446 — (446 ) — Cost of products sold and distribution expenses — — 403,810 104,971 (446 ) 508,335 Gross profit — — 393,168 93,461 — 486,629 Selling, general and administrative expenses 2,606 179 284,467 84,034 — 371,286 Restructuring charges — — 5,210 — — 5,210 Operating earnings (loss) (2,606 ) (179 ) 103,491 9,427 — 110,133 Interest expense (income) — 24,014 — 2 — 24,016 Earnings (loss) before provision for income taxes (2,606 ) (24,193 ) 103,491 9,425 — 86,117 Provision (benefit) for income taxes (251 ) (6,925 ) (7,915 ) 17,944 2,853 Equity in earnings of subsidiaries, net of tax 85,619 102,887 (8,519 ) — (179,987 ) — Net earnings (loss) 83,264 85,619 102,887 (8,519 ) (179,987 ) 83,264 Other comprehensive loss, net of tax — (803 ) — (255 ) (1,058 ) Total comprehensive income (loss) $ 83,264 $ 84,816 $ 102,887 $ (8,774 ) $ (179,987 ) $ 82,206 Condensed Consolidating Statement of Cash Flows Three Months Ended December 31, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash provided (used) by operating activities $ 12,295 $ (34,734 ) $ 71,284 $ 1,411 $ — $ 50,256 Cash Flows from Investing Activities: Payments for property and equipment, net — — (21,439 ) (2,271 ) — (23,710 ) Acquisitions, net of cash acquired — — — (451 ) — (451 ) Due from affiliates — — (27,014 ) — 27,014 — Net cash used by investing activities — — (48,453 ) (2,722 ) 27,014 (24,161 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 126,500 — — — 126,500 Repayments of long-term debt — (127,875 ) (1 ) — — (127,876 ) Repurchases of common stock — — — — — — Proceeds from exercises of stock options 1,449 — — — — 1,449 Due to affiliates (13,744 ) 36,109 — 4,649 (27,014 ) — Net cash provided (used) by financing activities (12,295 ) 34,734 (1 ) 4,649 (27,014 ) 73 Effect of foreign exchange rate changes on cash and cash equivalents — — — (692 ) — (692 ) Net increase in cash and cash equivalents — — 22,830 2,646 — 25,476 Cash and cash equivalents, beginning of period — 10 29,050 48,235 — 77,295 Cash and cash equivalents, end of period $ — $ 10 $ 51,880 $ 50,881 $ — $ 102,771 Condensed Consolidating Statement of Cash Flows Three Months Ended December 31, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash provided (used) by operating activities $ 32,788 $ (30,211 ) $ 100,319 $ 1,308 $ — $ 104,204 Cash Flows from Investing Activities: Payments for property and equipment, net — — (19,664 ) (2,835 ) — (22,499 ) Acquisitions, net of cash acquired — — — (9,175 ) — (9,175 ) Due from affiliates — — (70,909 ) — 70,909 — Net cash used by investing activities — — (90,573 ) (12,010 ) 70,909 (31,674 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 126,500 5 — — 126,505 Repayments of long-term debt — (118,875 ) (2 ) (190 ) — (119,067 ) Repurchases of common stock (64,612 ) — — — — (64,612 ) Proceeds from exercises of stock options 275 — — — — 275 Due to affiliates 31,549 22,586 — 16,774 (70,909 ) — Net cash provided (used) by financing activities (32,788 ) 30,211 3 16,584 (70,909 ) (56,899 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (78 ) — (78 ) Net increase in cash and cash equivalents — — 9,749 5,804 — 15,553 Cash and cash equivalents, beginning of period — 10 22,090 41,659 — 63,759 Cash and cash equivalents, end of period $ — $ 10 $ 31,839 $ 47,463 $ — $ 79,312

Restructuring Plans

Restructuring Plans	3 Months Ended
	Dec. 31, 2018
Restructuring And Related Activities [Abstract]
Restructuring Plans	14. Restructuring Plan 2018 Restructuring Plan In November 2017, our Board of Directors approved a restructuring plan (the “2018 Restructuring Plan”) focused primarily on significantly improving the profitability of our international businesses, with particular focus on our European operations. In April 2018, we announced an expansion of the 2018 Restructuring Plan that contained cost reduction initiatives designed to help fund important long-term growth initiatives. The expansion to the 2018 Restructuring Plan included headcount reductions primarily at our corporate headquarters in Denton, Texas. We estimate that we will incur total charges in connection with the expanded 2018 Restructuring Plan of approximately $28 million to $30 million related primarily to employee separation costs and third-party consulting. As of December 31, 2018, we do not anticipate any additional material costs for the 2018 Restructuring Plan. The liability related to the 2018 Restructuring Plan, which is included in accrued liabilities in our consolidated balance sheets, is as follows (in thousands): Restructuring Activity Liability at September 30, 2018 Expenses Expenses Paid or Otherwise Settled Adjustments Liability at December 31, 2018 Workforce reductions $ 3,444 $ 643 $ 4,087 $ — Consulting 3,087 2,502 3,384 2,205 Other 2,266 835 2,917 184 Total $ 8,797 $ 3,980 $ 10,388 $ — $ 2,389 Expenses incurred in the three months ended December 31, 2018 represent costs incurred by SBS ($1.1 million) and corporate ($2.8 million).

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	15. Commitments and Contingencies We are involved, from time to time, in various claims and lawsuits incidental to the conduct of our business in the ordinary course. We carry insurance coverage in such amounts in excess of our self-insured retention as we believe to be reasonable under the circumstances and that may or may not cover any or all of our liabilities in respect of these matters. We do not believe that the ultimate resolution of these matters will have a material adverse impact on our consolidated financial position, cash flows or results of operations. Data Security Incidents As previously disclosed, we experienced data security incidents during the fiscal years 2014 and 2015 (together, the “data security incidents”). The data security incidents involved the unauthorized installation of malicious software (“malware”) on our information technology systems, including our point-of-sale systems that may have placed at risk certain payment card data for some transactions. The costs that we have incurred to date in connection with the data security incidents include assessments by payment card networks, professional advisory fees and legal fees relating to investigating and remediating the data security incidents. During the fiscal year ended September 30, 2018, we received an assessment from a payment card network in connection with the data security incidents. The assessment is based on the network’s claims against the Company’s acquiring banks for costs that it asserts its issuing banks incurred in connection with the data security incidents, including incremental counterfeit fraud losses and non-ordinary course operating expenses, such as card reissuance costs. Our estimated probable loss related to the claims made by payment card networks in connection with the data security incidents is based on currently available information. We dispute the validity of the payment card network’s claims and intend to contest them vigorously. We may incur additional costs and expenses related to the data security incidents in future periods. These costs and expenses may result from liabilities related to (i) claims by payment card networks, (ii) governmental or third party investigations, proceedings or litigation, (iii) legal and other fees necessary to defend against any potential liabilities or claims, and (iv) further investigation and remediation costs. As of December 31, 2018, the scope of these additional costs and expenses, or a range thereof, beyond amounts management has determined to be probable, cannot be reasonably estimated and, while we do not anticipate that these additional costs and expenses or liabilities would have a material adverse impact on our business, financial condition and operating results, these additional costs and expenses could be significant.

Subsequent Event

Subsequent Event	3 Months Ended
	Dec. 31, 2018
Subsequent Events [Abstract]
Subsequent Event	16. Subsequent Event On February 5, 2019, we announced that we will be closing distribution facilities in Denton, Texas, and Anchorage, Alaska, by the end of the second quarter and will be closing the distribution center in Lincoln, Nebraska, by the end of third quarter. Simultaneously, we announced that we are searching for a 500,000 square foot location within Oklahoma, Louisiana or Texas for construction of a new automated and concentrated distribution center which will service SBS stores and e-commerce sales as well as BSG stores, full service sales and e-commerce sales. Additionally, we will also be upgrading our European distribution operations in Ghent, Belgium.

Accounting Changes and Recent_2

Accounting Changes and Recent Accounting Pronouncements (Policies)	3 Months Ended
	Dec. 31, 2018
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Accounting Changes	Accounting Changes In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In connection with the adoption of ASU No. 2014-09, we now present our sales returns allowance on a gross basis rather than a net liability basis. As such, we recognize a return asset from the right to recover merchandise from customers (included in other current assets) and a return liability from the amount to be returned to the customer (included in accrued liabilities) within our consolidated balance sheets. Additionally, we now recognize revenue for our gift cards not expected to be redeemed (“gift card breakage”) within revenue in our consolidated statements of earnings. The following tables set forth the impact of adopting this standard on our condensed consolidated balance sheets and consolidated statements of earnings as of and for the three months ended December 31, 2018 (in thousands): Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Balance Sheet Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Other current assets $ 40,819 $ 38,180 $ 2,639 Accrued liabilities $ 157,144 $ 154,505 $ 2,639 Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Statement of Earnings Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 989,453 $ 989,378 $ 75 Gross Profit 480,705 480,630 75 Selling, general and administrative expenses $ 366,987 $ 366,912 $ 75 See note 4, Revenue Recognition
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases

Accounting Changes and Recent_3

Accounting Changes and Recent Accounting Pronouncements (Tables)	3 Months Ended
	Dec. 31, 2018
ASU 2014-09
Recent Accounting Pronouncements
Schedule of Impact of Adopting ASU No. 2014-09 on Condensed Consolidated Balance Sheets and Consolidated Statements of Earnings	The following tables set forth the impact of adopting this standard on our condensed consolidated balance sheets and consolidated statements of earnings as of and for the three months ended December 31, 2018 (in thousands): Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Balance Sheet Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Other current assets $ 40,819 $ 38,180 $ 2,639 Accrued liabilities $ 157,144 $ 154,505 $ 2,639 Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Statement of Earnings Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 989,453 $ 989,378 $ 75 Gross Profit 480,705 480,630 75 Selling, general and administrative expenses $ 366,987 $ 366,912 $ 75

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Dec. 31, 2018
Revenue From Contract With Customer [Abstract]
Summary of Gift Card and Rewards Loyalty Program Liabilities	The following table shows the amount of our gift card and rewards loyalty program liabilities included in accrued liabilities within our condensed consolidated balance sheets as of December 31, 2018 and September 30, 2018 (in thousands): December 31, 2018 September 30, 2018 Gift cards $ 5,766 $ 4,144 Rewards loyalty program 7,246 1,165 Total liability $ 13,012 $ 5,309

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of financial assets and liabilities by fair value hierarchy	Fair value on recurring basis Consistent with the three-level hierarchy defined in ASC Topic 820, Fair Value Measurement As of December 31, 2018 As of September 30, 2018 Assets Foreign exchange contracts Level 2 $ 24 $ — Interest rate caps Level 2 4,551 8,367 Total assets $ 4,575 $ 8,367 Liabilities Foreign exchange contracts Level 2 $ 583 $ — Other fair value disclosures As of December 31, 2018 As of September 30, 2018 Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 $ 950,000 $ 882,240 $ 950,000 $ 911,490 Other long-term debt Level 2 843,995 794,054 845,383 824,951 Total debt $ 1,793,995 $ 1,676,294 $ 1,795,383 $ 1,736,441

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Dec. 31, 2018
Stockholders Equity Note [Abstract]
Schedule of changes in accumulated other comprehensive loss	The change in accumulated other comprehensive loss (“AOCL”) was as follows (in thousands): Foreign Currency Translation Adjustments Interest Rate Caps Foreign Exchange Contracts Total Balance at September 30, 2018 $ (91,356 ) $ 1,365 $ — $ (89,991 ) Other comprehensive loss before reclassification, net of tax (13,463 ) (2,839 ) (412 ) (16,714 ) Reclassification to net earnings, net of tax — 9 — 9 Balance at December 31, 2018 $ (104,819 ) $ (1,465 ) $ (412 ) $ (106,696 )

Weighted Average Shares (Tables

Weighted Average Shares (Tables)	3 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Schedule of computations of basic and diluted earnings per share	The following table sets forth the computations of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended December 31, 2018 2017 Weighted average basic shares 119,989 127,784 Dilutive securities: Stock option and stock award programs 990 861 Weighted average diluted shares 120,979 128,645

Share-Based Payments (Tables)

Share-Based Payments (Tables)	3 Months Ended
	Dec. 31, 2018
Share-Based Payments
Summary of activity for performance based unit awards assuming 100% payout	Performance Unit Awards Number of Shares (in Weighted Average Value Per Share Weighted Average Remaining Vesting Term (in Years) Unvested at September 30, 2018 349 $ 20.88 1.3 Granted — — Vested (23 ) 23.45 Forfeited (66 ) 23.10 Unvested at December 31, 2018 260 $ 20.10 1.4
Summary of activity for stock option awards	Number of Outstanding Options (in Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) Outstanding at September 30, 2018 5,405 $ 23.04 5.4 $ 3,161 Granted 948 18.14 Exercised (98 ) 15.90 Forfeited or expired (350 ) 25.24 Outstanding at December 31, 2018 5,905 $ 22.24 6.3 $ 1,527 Exercisable at December 31, 2018 3,870 $ 23.93 4.8 $ 1,336
Restricted Stock Awards
Share-Based Payments
Summary of the activity for restricted stock awards/units	Restricted Stock Awards Number of Shares (in Thousands) Weighted Average Fair Value Per Share Weighted Average Remaining Vesting Term (in Years) Unvested at September 30, 2018 219 $ 16.98 2.1 Granted 287 18.14 Vested — — Forfeited (6 ) 17.63 Unvested at December 31, 2018 500 $ 17.66 2.3
Restricted Stock Units
Share-Based Payments
Summary of the activity for restricted stock awards/units	Restricted Stock Units Number of Shares (in Thousands) Weighted Average Fair Value Per Share Weighted Average Remaining Vesting Term (in Years) Unvested at September 30, 2018 — $ — — Granted 88 18.14 Vested — — Forfeited — — Unvested at December 31, 2018 88 $ 18.14 0.7

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	3 Months Ended
	Dec. 31, 2018
Schedule of fair value of derivative financial instruments	The table below presents the fair value of our derivative financial instruments (in thousands): Asset Derivatives Liability Derivatives Classification December 31, 2018 September 30, 2018 Classification December 31, 2018 September 30, 2018 Derivatives designated as hedging instruments: Interest rate caps Other assets $ 4,551 $ 8,367 N/A $ — $ — Foreign exchange contracts Other current assets 24 — Accrued liabilities 583 — $ 4,575 $ 8,367 $ 583 $ —
Foreign Currency Forwards
Schedule of notional amount held through foreign currency forwards, based upon exchange rates	At December 31, 2018, the notional amount we held through these forwards, based upon exchange rates at December 31, 2018, was as follows (in thousands): Notional Currency Notional Amount EUR $ 16,085 MXP 14,342 GBP 6,642 CAD 3,748 Total $ 40,817

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Schedule of segment data	Segment data for the three months ended December 31, 2018 and 2017 is as follows (in thousands): Three Months Ended December 31, 2018 2017 Net sales: SBS $ 580,608 $ 585,574 Beauty Systems Group ("BSG") 408,845 409,390 Total $ 989,453 $ 994,964 Earnings before provision for income taxes: Segment operating earnings: SBS $ 89,991 $ 86,594 BSG 62,330 64,565 Segment operating earnings 152,321 151,159 Unallocated expenses (38,603 ) (35,816 ) Restructuring charges (3,980 ) (5,210 ) Consolidated operating earnings 109,738 110,133 Interest expense (24,489 ) (24,016 ) Earnings before provision for income taxes $ 85,249 $ 86,117
Schedule of disaggregation of net sales by segment	Disaggregation of net sales by segment SBS Three Months Ended December 31, 2018 2017 Hair color 27.5 % 26.4 % Hair care 19.9 % 20.6 % Styling tools 15.7 % 15.3 % Skin and nail care 15.1 % 14.9 % Salon supplies and accessories 7.1 % 7.1 % Multicultural products 6.5 % 6.7 % Other Beauty items 8.2 % 9.0 % Total 100.0 % 100.0 % BSG Three Months Ended December 31, 2018 2017 Hair color 38.0 % 36.8 % Hair care 33.4 % 33.6 % Skin and nail care 8.1 % 8.9 % Styling tools 3.9 % 4.7 % Other beauty items 5.8 % 5.8 % Promotional items 10.8 % 10.2 % Total 100.0 % 100.0 %

Parent, Issuers, Guarantor an_2

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Tables)	3 Months Ended
	Dec. 31, 2018
Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]
Schedule of Condensed Consolidating Balance Sheet	Condensed Consolidating Balance Sheet December 31, 2018 (In thousands) Parent Sally Holdings and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Holdings, Inc. and Subsidiaries Assets Cash and cash equivalents $ — $ 10 $ 51,880 $ 50,881 $ — $ 102,771 Trade and other accounts receivable, net — — 60,558 31,218 — 91,776 Due from affiliates — — 2,625,695 — (2,625,695 ) — Inventory — — 751,010 231,487 — 982,497 Other current assets 699 329 27,967 11,824 — 40,819 Property and equipment, net 7 — 233,513 69,637 — 303,157 Investment in subsidiaries 1,420,037 4,117,044 374,477 — (5,911,558 ) — Goodwill and other intangible assets, net — — 457,236 144,966 — 602,202 Other assets 1,325 6,321 (4,630 ) 18,376 — 21,392 Total assets $ 1,422,068 $ 4,123,704 $ 4,577,706 $ 558,389 $ (8,537,253 ) $ 2,144,614 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 46 $ — $ 251,245 $ 56,196 $ — $ 307,487 Due to affiliates 1,615,667 924,250 — 85,778 (2,625,695 ) — Accrued liabilities 301 6,044 118,244 32,555 — 157,144 Income taxes payable 13,230 1,519 — (169 ) — 14,580 Long-term debt — 1,772,936 — 870 — 1,773,806 Other liabilities 7,629 — 15,355 3,985 — 26,969 Deferred income tax liabilities, net (74 ) (1,082 ) 75,818 4,697 — 79,359 Total liabilities 1,636,799 2,703,667 460,662 183,912 (2,625,695 ) 2,359,345 Total stockholders’ (deficit) equity (214,731 ) 1,420,037 4,117,044 374,477 (5,911,558 ) (214,731 ) Total liabilities and stockholders’ (deficit) equity $ 1,422,068 $ 4,123,704 $ 4,577,706 $ 558,389 $ (8,537,253 ) $ 2,144,614 Condensed Consolidating Balance Sheet September 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Assets Cash and cash equivalents $ — $ 10 $ 29,050 $ 48,235 $ — $ 77,295 Trade and other accounts receivable, net 4 — 53,295 37,191 — 90,490 Due from affiliates — — 2,598,681 — (2,598,681 ) — Inventory — — 714,000 230,338 — 944,338 Other current assets 2,010 111 27,422 13,417 — 42,960 Property and equipment, net 8 — 232,941 75,408 — 308,357 Investment in subsidiaries 1,368,927 4,044,669 380,166 — (5,793,762 ) — Goodwill and other intangible assets, net — — 459,348 149,275 — 608,623 Other assets 1,325 10,242 (4,797 ) 18,581 — 25,351 Total assets $ 1,372,274 $ 4,055,032 $ 4,490,106 $ 572,445 $ (8,392,443 ) $ 2,097,414 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 38 $ - $ 233,936 $ 69,267 $ — $ 303,241 Due to affiliates 1,629,411 888,141 — 81,129 (2,598,681 ) — Accrued liabilities 234 23,019 125,179 31,855 — 180,287 Income taxes payable 585 1,519 — 40 — 2,144 Long-term debt — 1,773,426 1 882 — 1,774,309 Other liabilities 10,562 — 15,250 4,210 — 30,022 Deferred income tax liabilities, net — — 71,071 4,896 — 75,967 Total liabilities 1,640,830 2,686,105 445,437 192,279 (2,598,681 ) 2,365,970 Total stockholders’ (deficit) equity (268,556 ) 1,368,927 4,044,669 380,166 (5,793,762 ) (268,556 ) Total liabilities and stockholders’ (deficit) equity $ 1,372,274 $ 4,055,032 $ 4,490,106 $ 572,445 $ (8,392,443 ) $ 2,097,414
Schedule of Condensed Consolidating Statement of Earnings and Comprehensive Income	Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended December 31, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 793,530 $ 195,923 $ — $ 989,453 Related party sales — — 669 — (669 ) — Cost of products sold and distribution expenses — — 404,040 105,377 (669 ) 508,748 Gross profit — — 390,159 90,546 — 480,705 Selling, general and administrative expenses 2,809 168 286,216 77,794 — 366,987 Restructuring charges — — 3,980 — — 3,980 Operating earnings (loss) (2,809 ) (168 ) 99,963 12,752 — 109,738 Interest expense (income) — 24,552 (1 ) (62 ) — 24,489 Earnings (loss) before provision for income taxes (2,809 ) (24,720 ) 99,964 12,814 — 85,249 Provision (benefit) for income taxes (721 ) (6,345 ) 25,683 905 — 19,522 Equity in earnings of subsidiaries, net of tax 67,815 86,190 11,909 — (165,914 ) — Net earnings 65,727 67,815 86,190 11,909 (165,914 ) 65,727 Other comprehensive loss, net of tax — (2,830 ) — (13,875 ) — (16,705 ) Total comprehensive income (loss) $ 65,727 $ 64,985 $ 86,190 $ (1,966 ) $ (165,914 ) $ 49,022 Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended December 31, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 796,532 $ 198,432 $ — $ 994,964 Related party sales — — 446 — (446 ) — Cost of products sold and distribution expenses — — 403,810 104,971 (446 ) 508,335 Gross profit — — 393,168 93,461 — 486,629 Selling, general and administrative expenses 2,606 179 284,467 84,034 — 371,286 Restructuring charges — — 5,210 — — 5,210 Operating earnings (loss) (2,606 ) (179 ) 103,491 9,427 — 110,133 Interest expense (income) — 24,014 — 2 — 24,016 Earnings (loss) before provision for income taxes (2,606 ) (24,193 ) 103,491 9,425 — 86,117 Provision (benefit) for income taxes (251 ) (6,925 ) (7,915 ) 17,944 2,853 Equity in earnings of subsidiaries, net of tax 85,619 102,887 (8,519 ) — (179,987 ) — Net earnings (loss) 83,264 85,619 102,887 (8,519 ) (179,987 ) 83,264 Other comprehensive loss, net of tax — (803 ) — (255 ) (1,058 ) Total comprehensive income (loss) $ 83,264 $ 84,816 $ 102,887 $ (8,774 ) $ (179,987 ) $ 82,206
Schedule of Condensed Consolidating Statement of Cash Flows	Condensed Consolidating Statement of Cash Flows Three Months Ended December 31, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash provided (used) by operating activities $ 12,295 $ (34,734 ) $ 71,284 $ 1,411 $ — $ 50,256 Cash Flows from Investing Activities: Payments for property and equipment, net — — (21,439 ) (2,271 ) — (23,710 ) Acquisitions, net of cash acquired — — — (451 ) — (451 ) Due from affiliates — — (27,014 ) — 27,014 — Net cash used by investing activities — — (48,453 ) (2,722 ) 27,014 (24,161 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 126,500 — — — 126,500 Repayments of long-term debt — (127,875 ) (1 ) — — (127,876 ) Repurchases of common stock — — — — — — Proceeds from exercises of stock options 1,449 — — — — 1,449 Due to affiliates (13,744 ) 36,109 — 4,649 (27,014 ) — Net cash provided (used) by financing activities (12,295 ) 34,734 (1 ) 4,649 (27,014 ) 73 Effect of foreign exchange rate changes on cash and cash equivalents — — — (692 ) — (692 ) Net increase in cash and cash equivalents — — 22,830 2,646 — 25,476 Cash and cash equivalents, beginning of period — 10 29,050 48,235 — 77,295 Cash and cash equivalents, end of period $ — $ 10 $ 51,880 $ 50,881 $ — $ 102,771 Condensed Consolidating Statement of Cash Flows Three Months Ended December 31, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash provided (used) by operating activities $ 32,788 $ (30,211 ) $ 100,319 $ 1,308 $ — $ 104,204 Cash Flows from Investing Activities: Payments for property and equipment, net — — (19,664 ) (2,835 ) — (22,499 ) Acquisitions, net of cash acquired — — — (9,175 ) — (9,175 ) Due from affiliates — — (70,909 ) — 70,909 — Net cash used by investing activities — — (90,573 ) (12,010 ) 70,909 (31,674 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 126,500 5 — — 126,505 Repayments of long-term debt — (118,875 ) (2 ) (190 ) — (119,067 ) Repurchases of common stock (64,612 ) — — — — (64,612 ) Proceeds from exercises of stock options 275 — — — — 275 Due to affiliates 31,549 22,586 — 16,774 (70,909 ) — Net cash provided (used) by financing activities (32,788 ) 30,211 3 16,584 (70,909 ) (56,899 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (78 ) — (78 ) Net increase in cash and cash equivalents — — 9,749 5,804 — 15,553 Cash and cash equivalents, beginning of period — 10 22,090 41,659 — 63,759 Cash and cash equivalents, end of period $ — $ 10 $ 31,839 $ 47,463 $ — $ 79,312

Restructuring Plans (Tables)

Restructuring Plans (Tables)	3 Months Ended
	Dec. 31, 2018
2018 Restructuring Plan
Schedule of restructuring plan	The liability related to the 2018 Restructuring Plan, which is included in accrued liabilities in our consolidated balance sheets, is as follows (in thousands): Restructuring Activity Liability at September 30, 2018 Expenses Expenses Paid or Otherwise Settled Adjustments Liability at December 31, 2018 Workforce reductions $ 3,444 $ 643 $ 4,087 $ — Consulting 3,087 2,502 3,384 2,205 Other 2,266 835 2,917 184 Total $ 8,797 $ 3,980 $ 10,388 $ — $ 2,389

Accounting Changes and Recent_4

Accounting Changes and Recent Accounting Pronouncements - Schedule of Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Recent Accounting Pronouncements
Other current assets	$ 40,819	$ 42,960
Accrued liabilities	157,144	$ 180,287
ASU 2014-09 | Excluding ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Other current assets	38,180
Accrued liabilities	154,505
ASU 2014-09 | ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Other current assets	2,639
Accrued liabilities	$ 2,639

Accounting Changes and Recent_5

Accounting Changes and Recent Accounting Pronouncements - Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Statement of Earnings (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Recent Accounting Pronouncements
Net sales	$ 989,453	$ 994,964
Gross Profit	480,705	486,629
Selling, general and administrative expenses	366,987	$ 371,286
ASU 2014-09 | Excluding ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Net sales	989,378
Gross Profit	480,630
Selling, general and administrative expenses	366,912
ASU 2014-09 | ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Net sales	75
Gross Profit	75
Selling, general and administrative expenses	$ 75

Accounting Changes and Recent_6

Accounting Changes and Recent Accounting Pronouncements (Details) - ASU 16-02 $ in Millions	Dec. 31, 2018USD ($)
Recent Accounting Pronouncements
Estimated amount of Right of use asset	$ 525
Lease liability	$ 525

Revenue Recognition - (Details)

Revenue Recognition - (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenue From Contract With Customer [Abstract]
Revenue recognition payment terms	30 days
Contract assets	$ 0	$ 0

Revenue Recognition - Summary o

Revenue Recognition - Summary of Gift Card and Rewards Loyalty Program Liabilities (Details) - Accrued Liabilities - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Contract With Customer Liability [Line Items]
Total liability	$ 13,012	$ 5,309
Gift Cards
Contract With Customer Liability [Line Items]
Total liability	5,766	4,144
Rewards Loyalty Program
Contract With Customer Liability [Line Items]
Total liability	$ 7,246	$ 1,165

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Long-term debt
Long-term debt, Carrying Value	$ 1,793,995	$ 1,795,383
Long-term debt, Fair Value	1,676,294	1,736,441
Level 2 | Other Long-Term Debt
Long-term debt
Long-term debt, Carrying Value	843,995	845,383
Long-term debt, Fair Value	794,054	824,951
Level 1 | Senior notes
Long-term debt
Long-term debt, Carrying Value	950,000	950,000
Long-term debt, Fair Value	882,240	911,490
Fair value measurement on recurring basis
Assets
Total assets	4,575	8,367
Fair value measurement on recurring basis | Level 2
Assets
Foreign exchange contracts	24
Interest rate caps	4,551	$ 8,367
Liabilities
Foreign exchange contracts	$ 583

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss - Change in AOCL (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2018USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	$ (268,556)
Balance	(214,731)
Interest rate caps
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	1,365
Other comprehensive loss before reclassification, net of tax	(2,839)
Reclassification to net earnings, net of tax	9
Balance	(1,465)
Foreign exchange contracts
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive loss before reclassification, net of tax	(412)
Balance	(412)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(91,356)
Other comprehensive loss before reclassification, net of tax	(13,463)
Balance	(104,819)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(89,991)
Other comprehensive loss before reclassification, net of tax	(16,714)
Reclassification to net earnings, net of tax	9
Balance	$ (106,696)

Weighted Average Shares (Detail

Weighted Average Shares (Details) - shares shares in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share Reconciliation:
Weighted average basic shares	119,989	127,784
Dilutive securities:
Stock option and stock award programs	990	861
Weighted average diluted shares	120,979	128,645

Weighted Average Shares - Addit

Weighted Average Shares - Additional Information (Details) - shares shares in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Common stock potentially outstanding but not included in the computation of diluted earnings per share
Options to purchase shares not included in the computation of diluted earnings per share since the options were anti-dilutive (in shares)	5.7	5.8

Share-Based Payments - Performa

Share-Based Payments - Performance-Based Awards (Details) - Performance Unit Awards - $ / shares shares in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Share-Based Payments
Payout percentage (in percentage)	100.00%
Performance Unit Awards (in shares)
Unvested at the beginning of the period (in shares)	349
Vested (in shares)	(23)
Forfeited (in shares)	(66)
Unvested at the end of the period (in shares)	260	349
Performance Unit Awards (in dollars per share)
Unvested at the beginning of the period (in dollars per share)	$ 20.88
Vested (in dollar per share)	23.45
Forfeited (in dollars per share)	23.10
Unvested at the end of the period (in dollars per share)	$ 20.10	$ 20.88
Performance Unit Awards (in years)
Weighted Average Remaining Vesting Term (in Years)	1 year 4 months 24 days	1 year 3 months 18 days

Share-Based Payments - Service-

Share-Based Payments - Service-Based Awards and Stock Option Awards (Details) - Stock Option Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Stock Options, Number of Outstanding Options
Outstanding at the beginning of the period (in shares)	5,405
Granted (in shares)	948
Exercised (in shares)	(98)
Forfeited or expired (in shares)	(350)
Outstanding at the end of the period (in shares)	5,905	5,405
Exercisable at the end of the period (in shares)	3,870
Stock Options, Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 23.04
Granted (in dollars per share)	18.14
Exercised (in dollars per share)	15.90
Forfeited or expired (in dollars per share)	25.24
Outstanding at the end of the period (in dollars per share)	22.24	$ 23.04
Exercisable at the end of the period (in dollars per share)	$ 23.93
Stock Options, Weighted Average Remaining Contractual Term
Weighted average remaining contractual term (in years)	6 years 3 months 18 days	5 years 4 months 24 days
Exercisable at December 31, 2018	4 years 9 months 18 days
Stock Options, Aggregate Intrinsic Value
Outstanding balance at period end (in dollars)	$ 1,527	$ 3,161
Exercisable at the end of the period (in dollars)	$ 1,336

Share-Based Payments - Restrict

Share-Based Payments - Restricted Stock Awards (Details) - Restricted Stock Awards - $ / shares	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Restricted stock (in shares)
Unvested at the beginning of the period (in shares)	219,000
Granted (in shares)	287,000
Forfeited (in shares)	(6,000)
Unvested at the end of the period (in shares)	500,000	219,000
Restricted Stock (in dollars per share)
Unvested at the beginning of the period (in dollars per share)	$ 16.98
Granted (in dollars per share)	18.14
Forfeited (in dollars per share)	17.63
Unvested at the end of the period (in dollars per share)	$ 17.66	$ 16.98
Restricted stock (in years)
Weighted Average Remaining Vesting Term (in Years)	2 years 3 months 18 days	2 years 1 month 6 days

Share-Based Payments - Restri_2

Share-Based Payments - Restricted Stock Units (Details) - Restricted Stock Units	3 Months Ended
	Dec. 31, 2018$ / sharesshares
Restricted stock (in shares)
Granted (in shares) | shares	88,000
Unvested at the end of the period (in shares) | shares	88,000
Restricted Stock (in dollars per share)
Granted (in dollars per share) | $ / shares	$ 18.14
Unvested at the end of the period (in dollars per share) | $ / shares	$ 18.14
Restricted stock (in years)
Weighted Average Remaining Vesting Term (in Years)	8 months 12 days

Short-term Borrowings and Lon_2

Short-term Borrowings and Long-term Debt - ABL Facility and Canadian sub-facility (Details) $ in Millions	Dec. 31, 2018USD ($)
Sally Holdings, LLC
Debt Instruments
Revolving credit facility	$ 481.4

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - (Details)	3 Months Ended
	Dec. 31, 2018USD ($)instrument	Jul. 31, 2017USD ($)derivative
Derivative Instruments
Number of derivative instruments held | instrument	0
Foreign Currency Forwards
Derivative Instruments
Notional Amount	$ 40,817,000
Interest rate caps | Variable-rate tranche | Sally Holdings, LLC
Derivative Instruments
Notional Amount		$ 550,000,000
Derivative instruments, expiration date	Jun. 30, 2023
Number of interest rate caps | derivative		2
Interest rate caps designated as cash flow hedges to be reclassified in to interest expense over next 12 months	$ 300,000
Reclassification from AOCL | Foreign Currency Forwards
Derivative Instruments
Foreign currency forwards designated as cash flow hedges to be reclassified in to cost of goods sold over next 12 months	$ 500,000

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Schedule of Notional Amount Held Through Foreign Currency Forwards, Based Upon Exchange Rates (Details) - Foreign Currency Forwards $ in Thousands	Dec. 31, 2018USD ($)
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 40,817
EUR
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	16,085
MXP
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	14,342
GBP
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	6,642
CAD
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 3,748

Derivative Instruments and He_5

Derivative Instruments and Hedging Activities - Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Derivatives Designated as Hedging Instruments
Total derivatives designated as hedging instruments, Asset	$ 4,575	$ 8,367
Credit-risk-related Contingent Features
Total derivatives designated as hedging instruments, Liability	583
Other Assets
Derivatives Designated as Hedging Instruments
Interest rate caps	4,551	$ 8,367
Other current assets
Derivatives Designated as Hedging Instruments
Foreign exchange contracts	24
Accrued Liabilities
Credit-risk-related Contingent Features
Foreign exchange contracts	$ 583

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective tax rate	22.90%	3.30%
Amount of income tax expense from transition tax on unrepatriated foreign earnings recorded as a result of the Tax Cut and Jobs Act	$ 3
Net benefit recorded as a result of the U.S. tax reform		$ 22.2
Federal statutory tax rate	21.00%		24.50%
Unremitted earnings of foreign operations	$ 3
Reversal amount of tax benefit as a result of change in the regulations	$ 2.5

Business Segments (Details)

Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Net sales:
Total net sales	$ 989,453	$ 994,964
Segment operating earnings:
Segment operating earnings	109,738	110,133
Restructuring charges	(3,980)	(5,210)
Interest expense	(24,489)	(24,016)
Earnings before provision for income taxes	85,249	86,117
Operating segments
Segment operating earnings:
Segment operating earnings	152,321	151,159
Corporate
Segment operating earnings:
Unallocated expenses	(38,603)	(35,816)
Restructuring charges	(2,800)
Sally Beauty Supply
Net sales:
Total net sales	580,608	585,574
Segment operating earnings:
Restructuring charges	(1,100)
Sally Beauty Supply | Operating segments
Segment operating earnings:
Segment operating earnings	89,991	86,594
Beauty Systems Group
Net sales:
Total net sales	408,845	409,390
Beauty Systems Group | Operating segments
Segment operating earnings:
Segment operating earnings	$ 62,330	$ 64,565

Business Segments - Schedule of

Business Segments - Schedule of Disaggregation of Net Sales by Segment (Details) - Sales Revenue, Net - Product Concentration Risk	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Sally Beauty Supply
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	100.00%
Sally Beauty Supply | Hair color
Disaggregation Of Revenue [Line Items]
Percentage of net sales	27.50%	26.40%
Sally Beauty Supply | Hair care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	19.90%	20.60%
Sally Beauty Supply | Styling tools
Disaggregation Of Revenue [Line Items]
Percentage of net sales	15.70%	15.30%
Sally Beauty Supply | Skin and nail care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	15.10%	14.90%
Sally Beauty Supply | Salon supplies and accessories
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.10%	7.10%
Sally Beauty Supply | Multicultural products
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.50%	6.70%
Sally Beauty Supply | Other Beauty items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	8.20%	9.00%
Beauty Systems Group
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	100.00%
Beauty Systems Group | Hair color
Disaggregation Of Revenue [Line Items]
Percentage of net sales	38.00%	36.80%
Beauty Systems Group | Hair care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	33.40%	33.60%
Beauty Systems Group | Styling tools
Disaggregation Of Revenue [Line Items]
Percentage of net sales	3.90%	4.70%
Beauty Systems Group | Skin and nail care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	8.10%	8.90%
Beauty Systems Group | Other Beauty items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	5.80%	5.80%
Beauty Systems Group | Promotional items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	10.80%	10.20%

Parent, Issuers, Guarantor an_3

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Assets
Cash and cash equivalents	$ 102,771	$ 77,295	$ 79,312	$ 63,759
Trade and other accounts receivable, net	91,776	90,490
Inventory	982,497	944,338
Other current assets	40,819	42,960
Property and equipment, net	303,157	308,357
Goodwill and other intangible assets, net	602,202	608,623
Other assets	21,392	25,351
Total assets	2,144,614	2,097,414
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	307,487	303,241
Accrued liabilities	157,144	180,287
Income taxes payable	14,580	2,144
Long-term debt	1,773,806	1,774,309
Other liabilities	26,969	30,022
Deferred income tax liabilities, net	79,359	75,967
Total liabilities	2,359,345	2,365,970
Total stockholders’ (deficit) equity	(214,731)	(268,556)	(342,635)	(363,616)
Total liabilities and stockholders’ (deficit) equity	2,144,614	2,097,414
Parent
Assets
Trade and other accounts receivable, net		4
Other current assets	699	2,010
Property and equipment, net	7	8
Investment in subsidiaries	1,420,037	1,368,927
Other assets	1,325	1,325
Total assets	1,422,068	1,372,274
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	46	38
Due to affiliates	1,615,667	1,629,411
Accrued liabilities	301	234
Income taxes payable	13,230	585
Other liabilities	7,629	10,562
Deferred income tax liabilities, net	(74)
Total liabilities	1,636,799	1,640,830
Total stockholders’ (deficit) equity	(214,731)	(268,556)
Total liabilities and stockholders’ (deficit) equity	1,422,068	1,372,274
Sally Holdings and Sally Capital
Assets
Cash and cash equivalents	10	10	10	10
Other current assets	329	111
Investment in subsidiaries	4,117,044	4,044,669
Other assets	6,321	10,242
Total assets	4,123,704	4,055,032
Liabilities and Stockholders’ (Deficit) Equity
Due to affiliates	924,250	888,141
Accrued liabilities	6,044	23,019
Income taxes payable	1,519	1,519
Long-term debt	1,772,936	1,773,426
Deferred income tax liabilities, net	(1,082)
Total liabilities	2,703,667	2,686,105
Total stockholders’ (deficit) equity	1,420,037	1,368,927
Total liabilities and stockholders’ (deficit) equity	4,123,704	4,055,032
Guarantor Subsidiaries
Assets
Cash and cash equivalents	51,880	29,050	31,839	22,090
Trade and other accounts receivable, net	60,558	53,295
Due from affiliates	2,625,695	2,598,681
Inventory	751,010	714,000
Other current assets	27,967	27,422
Property and equipment, net	233,513	232,941
Investment in subsidiaries	374,477	380,166
Goodwill and other intangible assets, net	457,236	459,348
Other assets	(4,630)	(4,797)
Total assets	4,577,706	4,490,106
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	251,245	233,936
Accrued liabilities	118,244	125,179
Long-term debt		1
Other liabilities	15,355	15,250
Deferred income tax liabilities, net	75,818	71,071
Total liabilities	460,662	445,437
Total stockholders’ (deficit) equity	4,117,044	4,044,669
Total liabilities and stockholders’ (deficit) equity	4,577,706	4,490,106
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	50,881	48,235	$ 47,463	$ 41,659
Trade and other accounts receivable, net	31,218	37,191
Inventory	231,487	230,338
Other current assets	11,824	13,417
Property and equipment, net	69,637	75,408
Goodwill and other intangible assets, net	144,966	149,275
Other assets	18,376	18,581
Total assets	558,389	572,445
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	56,196	69,267
Due to affiliates	85,778	81,129
Accrued liabilities	32,555	31,855
Income taxes payable	(169)	40
Long-term debt	870	882
Other liabilities	3,985	4,210
Deferred income tax liabilities, net	4,697	4,896
Total liabilities	183,912	192,279
Total stockholders’ (deficit) equity	374,477	380,166
Total liabilities and stockholders’ (deficit) equity	558,389	572,445
Consolidating Eliminations
Assets
Due from affiliates	(2,625,695)	(2,598,681)
Investment in subsidiaries	(5,911,558)	(5,793,762)
Total assets	(8,537,253)	(8,392,443)
Liabilities and Stockholders’ (Deficit) Equity
Due to affiliates	(2,625,695)	(2,598,681)
Total liabilities	(2,625,695)	(2,598,681)
Total stockholders’ (deficit) equity	(5,911,558)	(5,793,762)
Total liabilities and stockholders’ (deficit) equity	$ (8,537,253)	$ (8,392,443)

Parent, Issuers, Guarantor an_4

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Earnings and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Condensed Income Statements Captions [Line Items]
Net sales	$ 989,453	$ 994,964
Cost of products sold and distribution expenses	508,748	508,335
Gross profit	480,705	486,629
Selling, general and administrative expenses	366,987	371,286
Restructuring charges	3,980	5,210
Operating earnings	109,738	110,133
Interest expense (income)	24,489	24,016
Earnings before provision for income taxes	85,249	86,117
Provision (benefit) for income taxes	19,522	2,853
Net earnings	65,727	83,264
Other comprehensive loss, net of tax	(16,705)	(1,058)
Total comprehensive income	49,022	82,206
Parent
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses	2,809	2,606
Operating earnings	(2,809)	(2,606)
Earnings before provision for income taxes	(2,809)	(2,606)
Provision (benefit) for income taxes	(721)	(251)
Equity in earnings of subsidiaries, net of tax	67,815	85,619
Net earnings	65,727	83,264
Total comprehensive income	65,727	83,264
Sally Holdings and Sally Capital
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses	168	179
Operating earnings	(168)	(179)
Interest expense (income)	24,552	24,014
Earnings before provision for income taxes	(24,720)	(24,193)
Provision (benefit) for income taxes	(6,345)	(6,925)
Equity in earnings of subsidiaries, net of tax	86,190	102,887
Net earnings	67,815	85,619
Other comprehensive loss, net of tax	(2,830)	(803)
Total comprehensive income	64,985	84,816
Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales	793,530	796,532
Related party sales	669	446
Cost of products sold and distribution expenses	404,040	403,810
Gross profit	390,159	393,168
Selling, general and administrative expenses	286,216	284,467
Restructuring charges	3,980	5,210
Operating earnings	99,963	103,491
Interest expense (income)	(1)
Earnings before provision for income taxes	99,964	103,491
Provision (benefit) for income taxes	25,683	(7,915)
Equity in earnings of subsidiaries, net of tax	11,909	(8,519)
Net earnings	86,190	102,887
Total comprehensive income	86,190	102,887
Non-Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales	195,923	198,432
Cost of products sold and distribution expenses	105,377	104,971
Gross profit	90,546	93,461
Selling, general and administrative expenses	77,794	84,034
Operating earnings	12,752	9,427
Interest expense (income)	(62)	2
Earnings before provision for income taxes	12,814	9,425
Provision (benefit) for income taxes	905	17,944
Net earnings	11,909	(8,519)
Other comprehensive loss, net of tax	(13,875)	(255)
Total comprehensive income	(1,966)	(8,774)
Consolidating Eliminations
Condensed Income Statements Captions [Line Items]
Related party sales	(669)	(446)
Cost of products sold and distribution expenses	(669)	(446)
Equity in earnings of subsidiaries, net of tax	(165,914)	(179,987)
Net earnings	(165,914)	(179,987)
Total comprehensive income	$ (165,914)	$ (179,987)

Parent, Issuers, Guarantor an_5

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	$ 50,256	$ 104,204
Cash Flows from Investing Activities:
Payments for property and equipment, net	(23,710)	(22,499)
Acquisitions, net of cash acquired	(451)	(9,175)
Net cash used by investing activities	(24,161)	(31,674)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	126,500	126,505
Repayments of long-term debt	(127,876)	(119,067)
Repurchases of common stock		(64,612)
Proceeds from exercises of stock options	1,449	275
Net cash used by financing activities	73	(56,899)
Effect of foreign exchange rate changes on cash and cash equivalents	(692)	(78)
Net increase (decrease) in cash and cash equivalents	25,476	15,553
Cash and cash equivalents, beginning of period	77,295	63,759
Cash and cash equivalents, end of period	102,771	79,312
Parent
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	12,295	32,788
Cash Flows from Financing Activities:
Repurchases of common stock		(64,612)
Proceeds from exercises of stock options	1,449	275
Due to affiliates	(13,744)	31,549
Net cash used by financing activities	(12,295)	(32,788)
Sally Holdings and Sally Capital
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	(34,734)	(30,211)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	126,500	126,500
Repayments of long-term debt	(127,875)	(118,875)
Due to affiliates	36,109	22,586
Net cash used by financing activities	34,734	30,211
Cash and cash equivalents, beginning of period	10	10
Cash and cash equivalents, end of period	10	10
Guarantor Subsidiaries
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	71,284	100,319
Cash Flows from Investing Activities:
Payments for property and equipment, net	(21,439)	(19,664)
Due from affiliates	(27,014)	(70,909)
Net cash used by investing activities	(48,453)	(90,573)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt		5
Repayments of long-term debt	(1)	(2)
Net cash used by financing activities	(1)	3
Net increase (decrease) in cash and cash equivalents	22,830	9,749
Cash and cash equivalents, beginning of period	29,050	22,090
Cash and cash equivalents, end of period	51,880	31,839
Non-Guarantor Subsidiaries
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	1,411	1,308
Cash Flows from Investing Activities:
Payments for property and equipment, net	(2,271)	(2,835)
Acquisitions, net of cash acquired	(451)	(9,175)
Net cash used by investing activities	(2,722)	(12,010)
Cash Flows from Financing Activities:
Repayments of long-term debt		(190)
Due to affiliates	4,649	16,774
Net cash used by financing activities	4,649	16,584
Effect of foreign exchange rate changes on cash and cash equivalents	(692)	(78)
Net increase (decrease) in cash and cash equivalents	2,646	5,804
Cash and cash equivalents, beginning of period	48,235	41,659
Cash and cash equivalents, end of period	50,881	47,463
Consolidating Eliminations
Cash Flows from Investing Activities:
Due from affiliates	27,014	70,909
Net cash used by investing activities	27,014	70,909
Cash Flows from Financing Activities:
Due to affiliates	(27,014)	(70,909)
Net cash used by financing activities	$ (27,014)	$ (70,909)

Restructuring Plans (Details)

Restructuring Plans (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Apr. 30, 2018
Changes in restructuring reserve
Restructuring charges	$ 3,980,000	$ 5,210,000
Corporate
Changes in restructuring reserve
Restructuring charges	2,800,000
Sally Beauty Supply
Changes in restructuring reserve
Restructuring charges	1,100,000
2018 Restructuring Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance	8,797,000
Restructuring charges	3,980,000
Expenses Paid or Otherwise Settled	10,388,000
Restructuring reserve, ending balance	2,389,000
2018 Restructuring Plan | Workforce reductions
Changes in restructuring reserve
Restructuring reserve, beginning balance	3,444,000
Restructuring charges	643,000
Expenses Paid or Otherwise Settled	4,087,000
2018 Restructuring Plan | Consulting
Changes in restructuring reserve
Restructuring reserve, beginning balance	3,087,000
Restructuring charges	2,502,000
Expenses Paid or Otherwise Settled	3,384,000
Restructuring reserve, ending balance	2,205,000
2018 Restructuring Plan | Other
Changes in restructuring reserve
Restructuring reserve, beginning balance	2,266,000
Restructuring charges	835,000
Expenses Paid or Otherwise Settled	2,917,000
Restructuring reserve, ending balance	$ 184,000
Minimum | 2018 Restructuring Plan
Changes in restructuring reserve
Total estimated aggregate charges			$ 28,000,000
Maximum | 2018 Restructuring Plan
Changes in restructuring reserve
Total estimated aggregate charges			$ 30,000,000

Subsequent Event (Details)

Subsequent Event (Details)	Feb. 05, 2019ft²
Subsequent Event | Oklahoma, Louisiana or Texas
Subsequent Event [Line Items]
Area of warehouse	500,000