Sally Beauty (SBH) 10-Q 5 May 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Entity Registrant Name	SALLY BEAUTY HOLDINGS, INC.
Entity Central Index Key	0001368458
Document Type	10-Q
Document Period End Date	Mar. 31, 2022
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 Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity File Number	1-33145
Entity Tax Identification Number	36-2257936
Entity Address, Address Line One	3001 Colorado Boulevard
Entity Address, City or Town	Denton
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76210
City Area Code	940
Local Phone Number	898-7500
Security Exchange Name	NYSE
Title of 12(b) Security	Common Stock, $0.01 par value
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		107,000,985
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021
Current assets:
Cash and cash equivalents	$ 227,413	$ 400,959
Trade accounts receivable, net	28,615	32,623
Accounts receivable, other	32,100	33,958
Inventory	962,563	871,349
Other current assets	50,990	44,686
Total current assets	1,301,681	1,383,575
Property and equipment, net of accumulated depreciation of $800,715 at March 31, 2022, and $767,403 at September 30, 2021	287,855	307,377
Operating lease assets	540,801	537,673
Goodwill	539,682	541,209
Intangible assets, excluding goodwill, net of accumulated amortization of $40,528 at March 31, 2022, and $38,957 at September 30, 2021	52,994	55,532
Other assets	19,990	21,766
Total assets	2,743,003	2,847,132
Current liabilities:
Current maturities of long-term debt	182	194
Accounts payable	240,594	291,632
Accrued liabilities	170,540	206,155
Current operating lease liabilities	160,549	156,234
Income taxes payable	2,404	10,666
Total current liabilities	574,269	664,881
Long-term debt	1,381,385	1,382,530
Long-term operating lease liabilities	406,658	404,147
Other liabilities	16,547	29,056
Deferred income tax liabilities, net	92,278	85,777
Total liabilities	2,471,137	2,566,391
Stockholders’ equity:
Common stock, $0.01 par value. Authorized 500,000 shares; 107,003 and 113,138 shares issued and 106,930 and 112,913 shares outstanding at March 31, 2022, and September 30, 2021, respectively	1,069	1,129
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued
Additional paid-in capital		17,286
Accumulated earnings	372,265	356,967
Accumulated other comprehensive loss, net of tax	(101,468)	(94,641)
Total stockholders’ equity	271,866	280,741
Total liabilities and stockholders’ equity	$ 2,743,003	$ 2,847,132

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021
Statement Of Financial Position [Abstract]
Property and equipment, accumulated depreciation (in dollars)	$ 800,715	$ 767,403
Intangible assets, excluding goodwill, accumulated amortization (in dollars)	$ 40,528	$ 38,957
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	107,003,000	113,138,000
Common stock, shares outstanding	106,930,000	112,913,000
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		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net sales	$ 911,387	$ 926,328	$ 1,891,638	$ 1,862,350
Cost of goods sold	446,055	459,099	926,177	924,397
Gross profit	465,332	467,229	965,461	937,953
Selling, general and administrative expenses	378,871	391,087	765,121	757,257
Restructuring		631	1,099	863
Operating earnings	86,461	75,511	199,241	179,833
Interest expense	19,896	23,883	40,137	49,861
Earnings before provision for income taxes	66,565	51,628	159,104	129,972
Provision for income taxes	19,757	13,316	43,458	34,469
Net earnings	$ 46,808	$ 38,312	$ 115,646	$ 95,503
Earnings per share:
Basic	$ 0.43	$ 0.34	$ 1.05	$ 0.85
Diluted	$ 0.42	$ 0.34	$ 1.03	$ 0.84
Weighted-average shares:
Basic	108,743	112,603	110,387	112,538
Diluted	110,540	114,342	112,207	114,028

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 46,808	$ 38,312	$ 115,646	$ 95,503
Other comprehensive (loss) income:
Foreign currency translation adjustments	(2,752)	(7,890)	(7,261)	17,117
Interest rate caps, net of tax			278	175
Foreign exchange contracts, net of tax	(324)	574	156	(1,020)
Other comprehensive (loss) income, net of tax	(3,076)	(7,316)	(6,827)	16,272
Total comprehensive income	$ 43,732	$ 30,996	$ 108,819	$ 111,775

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Earnings	Accumulated Other Comprehensive Loss
Balance at Sep. 30, 2020	$ 15,443	$ 1,124	$ 1,913	$ 117,109	$ (104,703)
Balance (in shares) at Sep. 30, 2020		112,405
Increase (Decrease) in Stockholders' Equity
Net earnings	57,191			57,191
Other comprehensive income (loss)	23,588				23,588
Share-based compensation	2,893		2,893
Stock issued for equity awards		$ 2	(2)
Stock issued for equity awards (in shares)		158
Employee withholding taxes paid related to net share settlement	(249)	$ (1)	(248)
Employee withholding taxes paid related to net share settlement (in shares)		(25)
Balance at Dec. 31, 2020	98,866	$ 1,125	4,556	174,300	(81,115)
Balance (in shares) at Dec. 31, 2020		112,538
Balance at Sep. 30, 2020	15,443	$ 1,124	1,913	117,109	(104,703)
Balance (in shares) at Sep. 30, 2020		112,405
Increase (Decrease) in Stockholders' Equity
Net earnings	95,503
Other comprehensive income (loss)	16,272
Balance at Mar. 31, 2021	134,833	$ 1,127	9,525	212,612	(88,431)
Balance (in shares) at Mar. 31, 2021		112,679
Balance at Dec. 31, 2020	98,866	$ 1,125	4,556	174,300	(81,115)
Balance (in shares) at Dec. 31, 2020		112,538
Increase (Decrease) in Stockholders' Equity
Net earnings	38,312			38,312
Other comprehensive income (loss)	(7,316)				(7,316)
Share-based compensation	2,648		2,648
Stock issued for equity awards	2,323	$ 2	2,321
Stock issued for equity awards (in shares)		141
Balance at Mar. 31, 2021	134,833	$ 1,127	9,525	212,612	(88,431)
Balance (in shares) at Mar. 31, 2021		112,679
Balance at Sep. 30, 2021	$ 280,741	$ 1,129	17,286	356,967	(94,641)
Balance (in shares) at Sep. 30, 2021	112,913	112,913
Increase (Decrease) in Stockholders' Equity
Net earnings	$ 68,838			68,838
Other comprehensive income (loss)	(3,751)				(3,751)
Share-based compensation	3,958		3,958
Stock issued for equity awards	7,372	$ 8	7,364
Stock issued for equity awards (in shares)		795
Employee withholding taxes paid related to net share settlement	(1,137)	$ (1)	(1,136)
Employee withholding taxes paid related to net share settlement (in shares)		(56)
Repurchases and cancellations of common stock	(75,000)	$ (36)	(27,472)	(47,492)
Repurchases and cancellations of common stock (in shares)		(3,675)
Balance at Dec. 31, 2021	281,021	$ 1,100		378,313	(98,392)
Balance (in shares) at Dec. 31, 2021		109,977
Balance at Sep. 30, 2021	$ 280,741	$ 1,129	17,286	356,967	(94,641)
Balance (in shares) at Sep. 30, 2021	112,913	112,913
Increase (Decrease) in Stockholders' Equity
Net earnings	$ 115,646
Other comprehensive income (loss)	(6,827)
Balance at Mar. 31, 2022	$ 271,866	$ 1,069		372,265	(101,468)
Balance (in shares) at Mar. 31, 2022	106,930	106,930
Balance at Dec. 31, 2021	$ 281,021	$ 1,100		378,313	(98,392)
Balance (in shares) at Dec. 31, 2021		109,977
Increase (Decrease) in Stockholders' Equity
Net earnings	46,808			46,808
Other comprehensive income (loss)	(3,076)				(3,076)
Share-based compensation	2,032		2,032
Stock issued for equity awards	424	$ 1	423
Stock issued for equity awards (in shares)		111
Employee withholding taxes paid related to net share settlement	(15)		(15)
Employee withholding taxes paid related to net share settlement (in shares)		(1)
Repurchases and cancellations of common stock	(55,328)	$ (32)	$ (2,440)	(52,856)
Repurchases and cancellations of common stock (in shares)		(3,157)
Balance at Mar. 31, 2022	$ 271,866	$ 1,069		$ 372,265	$ (101,468)
Balance (in shares) at Mar. 31, 2022	106,930	106,930

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows from Operating Activities:
Net earnings	$ 115,646	$ 95,503
Adjustments to reconcile net earnings to net cash (used) provided by operating activities:
Depreciation and amortization	48,471	52,945
Share-based compensation expense	5,990	5,541
Amortization of deferred financing costs	1,865	2,326
Loss on early extinguishment of debt		1,390
Loss on disposal of equipment and other property	80	1,741
Deferred income taxes	6,507	(365)
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable	3,800	(3,437)
Accounts receivable, other	2,108	(5,544)
Inventory	(95,468)	(127,324)
Other current assets	(6,273)	3,588
Other assets	1,979	(4,307)
Operating leases, net	3,657	(2,420)
Accounts payable and accrued liabilities	(70,217)	101,331
Income taxes payable	(8,393)	13,447
Other liabilities	(12,525)	(2,859)
Net cash (used) provided by operating activities	(2,773)	131,556
Cash Flows from Investing Activities:
Payments for property and equipment, net of proceeds	(44,109)	(27,095)
Acquisitions, net of cash acquired	(318)	(2,245)
Net cash used by investing activities	(44,427)	(29,340)
Cash Flows from Financing Activities:
Repayments of long-term debt	(2,841)	(213,271)
Payments for common stock repurchased	(130,328)
Proceeds from equity awards	7,796	2,322
Employee withholding taxes paid related to net share settlement of equity awards	(1,151)	(249)
Net cash used by financing activities	(126,524)	(211,198)
Effect of foreign exchange rate changes on cash and cash equivalents	178	3,152
Net decrease in cash and cash equivalents	(173,546)	(105,830)
Cash and cash equivalents, beginning of period	400,959	514,151
Cash and cash equivalents, end of period	227,413	408,321
Supplemental Cash Flow Information:
Interest paid	37,809	46,445
Income taxes paid	56,701	20,791
Capital expenditures incurred but not paid	$ 3,205	$ 3,255

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Significant Accounting Policies	1. Significant Accounting Policies Business Operations Sally Beauty Holdings is an international specialty retailer and distributor of professional beauty supplies with operations in North America, South America and Europe. We are one of the largest distributers of professional beauty supplies in the U.S. based on store count, operating under two segments, Sally Beauty Supply (“SBS”) and Beauty Systems Group (“BSG”). Our operations consist of company-operated stores, franchise stores and several e-commerce platforms. Within BSG, we also have one of the largest networks of distributor sales consultants (“DSCs”) for professional beauty products in North America, who sell directly to salons and salon professionals. SBS targets retail consumers, salons and salon professionals, while BSG targets salons and salons professionals. 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 included herein are adequate for the interim period presented. 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, 2021. 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 March 31, 2022 and September 30, 2021, and our consolidated results of operations, consolidated comprehensive income, consolidated statements of stockholders’ equity for the three and six months ended March 31, 2022 and 2021 and our consolidated cash flows for the for the six months ended March 31, 2022 and 2021. Principles of Consolidation The condensed consolidated interim financial statements include all accounts of Sally Beauty Holdings, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. All amounts are in U.S. Dollars. 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 our estimated annual effective income tax. Use of Estimates In order to present our financial statements in conformity with GAAP, we are required to make certain estimates and assumptions that impact our interim financial statements and supplementary disclosures. These estimates may use forecasted financial information based on reasonable information available, however are subject to change in the future. Additionally, unknown future impacts of COVID-19 may impact those estimates and assumptions as well. Significant estimates and assumptions are part of our accounting for sales allowances, deferred revenue, valuation of inventory, amortization and depreciation, intangibles and goodwill, and other reserves. We believe these estimates and assumptions are reasonable however they are based on management’s current knowledge of events and actions and changes in facts and circumstances may result in revised estimates, and impact actual results. Impact of COVID-19 Our operating results for the three and six months ended March 31, 2022, were adversely impacted by the COVID-19 pandemic and its continuing effects on the economy, including inflationary pressures, continued supply chain disruptions, increased freight costs, labor shortages and increased labor costs. Given the uncertainty around the continuing effects of the COVID-19 pandemic and its economic impact we cannot reasonably predict the effect they will have on future periods. If we become materially and adversely impacted, we may have to consider adjustments to our strategic plans, inventory, liquidity, operational and capital expenditure plans.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Mar. 31, 2022
Revenue From Contract With Customer [Abstract]
Revenue Recognition	2. Revenue Recognition Substantially all of our revenue is derived through the sale of merchandise at the point-of-sale. Revenue is recognized net of estimated sales returns and sales taxes. We estimate sales returns based on historical data. Changes to our contract liabilities, which are included in accrued liabilities in our condensed balance sheets, for the periods were as follows (in thousands): Six Months Ended March 31, 2022 2021 Beginning Balance $ 16,744 $ 13,947 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 6,214 7,998 Revenue recognized from beginning liability (6,316 ) (6,729 ) Ending Balance $ 16,642 $ 15,216 See Note 9, Segment Reporting

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair Value Measurements Financial instruments measured on recurring basis Consistent with the three-level hierarchy defined in ASC Topic 820, Fair Value Measurement (in thousands) Classification Fair Value Hierarchy Level March 31, 2022 September 30, 2021 Financial Assets: Foreign exchange contracts Other current assets Level 2 $ 329 $ — Interest rate caps Other assets Level 2 133 35 Total assets $ 462 $ 35 . Financial Liabilities: Foreign exchange contracts Accrued liabilities Level 2 $ 612 $ — Financial instruments not measured at fair value Carrying amounts and the related estimated fair value of our long-term debt, excluding capital lease obligations and debt issuance costs, are as follows: March 31, 2022 September 30, 2021 (in thousands) Fair Value Hierarchy Level Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding capital leases Senior notes Level 1 $ 979,961 $ 1,000,636 $ 979,961 $ 1,019,635 Term loan B Level 2 410,250 405,122 413,000 411,451 Total long-term debt $ 1,390,211 $ 1,405,758 $ 1,392,961 $ 1,431,086 The table above excludes amounts, if any, related to our ABL facility as the balance approximates fair value due to the short-term nature of our borrowings.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Mar. 31, 2022
Stockholders Equity Note [Abstract]
Stockholders' Equity	4. Stockholders’ Equity Share Repurchases In August 2017, our Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $1.0 billion of its common stock, subject to certain limitations governed by our debt agreements. In July 2021, our Board of Directors approved a term extension of the share repurchase program for the four-year Information related to our shares repurchased and subsequently retired were as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Number of shares repurchased 3,157 — 6,832 — Total cost of share repurchased $ 55,328 $ — $ 130,328 $ — 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, 2021 $ (92,154 ) $ (2,085 ) $ (402 ) $ (94,641 ) Other comprehensive loss before reclassification, net of tax (7,261 ) (114 ) (212 ) (7,587 ) Reclassification to net earnings, net of tax — 392 368 760 Balance at March 31, 2022 $ (99,415 ) $ (1,807 ) $ (246 ) $ (101,468 ) The tax impact for the changes in other comprehensive loss and the reclassifications to net earnings was not material.

Weighted-Average Shares

Weighted-Average Shares	6 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Weighted-Average Shares	5. Weighted-Average Shares The following table sets forth the reconciliation of basic and diluted weighted-average shares (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Weighted-average basic shares 108,743 112,603 110,387 112,538 Dilutive securities: Stock option and stock award programs 1,797 1,739 1,820 1,490 Weighted-average diluted shares 110,540 114,342 112,207 114,028 Anti-dilutive options excluded from our computation of diluted shares 2,534 4,197 2,169 4,222

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Mar. 31, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	6. Goodwill and Intangible Assets During the three months ended March 31, 2022, we completed our annual assessment for impairment of goodwill and other intangible assets. For goodwill, we used a qualitative analysis and our actual and forecasted results are exceeding the estimates from the last quantitative test. No material impairment losses were recognized in the current or prior periods presented in connection with our goodwill and other intangible assets. Three Months Ended March 31, Six Months Ended March 31, (in thousands) 2022 2021 2022 2021 Intangible assets amortization expense $ 999 $ 1,609 $ 2,070 $ 3,307 Additionally, during the six months ended March 31, 2022, the decrease in goodwill was primarily from the effects of foreign currency exchange rates of $1.5 million.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Mar. 31, 2022
Payables And Accruals [Abstract]
Accrued Liabilities	7. Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, 2022 September 30, 2021 Compensation and benefits $ 55,300 $ 73,344 Interest payable 24,103 24,101 Deferred revenue 18,410 18,543 Rental obligations 10,754 10,501 Insurance reserves 5,962 5,934 Property and other taxes 2,293 3,853 Operating accruals and other 53,718 69,879 Total accrued liabilities $ 170,540 $ 206,155

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	6 Months Ended
	Mar. 31, 2022
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	8. Derivative Instruments and Hedging Activities During the six months ended March 31, 2022, we did not purchase or hold any derivative instruments for trading or speculative purposes. See Note 3, Fair Value Measurements Designated Cash Flow Hedges Foreign Currency Forwards We regularly enter into foreign currency forwards to mitigate our exposure to exchange rate changes on inventory purchases in U.S. dollars by our foreign subsidiaries. At March 31, 2022, we held forwards, which expire ratably through September 30, 2022, with a notional amount, based upon exchange rates at March 31, 2022, as follows (in thousands): Notional Currency Notional Amount Mexican Peso $ 13,013 Euro 8,551 Canadian Dollar 5,804 Total $ 27,368 Quarterly, the changes in fair value related to the foreign currency forwards are recorded into AOCL. As the forwards are exercised, the realized value is recognized into cost of goods sold, based on inventory turns, in our condensed consolidated statements of earnings. For the six months ended March 31, 2022 and 2021, we recognized a loss of $0.4 million and a gain of $0.4 million, respectively. The effects of our foreign currency forwards were not material for the three months ended March 31, 2022 and 2021. Based on March 31, 2022 valuations and exchange rates, we expect to reclassify losses of approximately $0.1 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. For the six months ended March 31, 2022 and 2021, we recognized expense of $0.4 million and $0.2 million, respectively, into interest expense on our condensed consolidated statements of earnings. The effects of our interest rate caps on our condensed consolidated statements of earnings were not material for the three months ended March 31, 2022 and 2021. Over the next 12 months, we expect to reclassify approximately $1.9 million into interest expense, which represents the original value of the expiring caplets.

Business Segments

Business Segments	6 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Business Segments	9. Segment Reporting Segment data for the three and six months ended March 31, 2022 and 2021, is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Net sales: Sally Beauty Supply ("SBS") $ 525,785 $ 542,664 $ 1,087,315 $ 1,090,334 Beauty Systems Group ("BSG") 385,602 383,664 804,323 772,016 Total $ 911,387 $ 926,328 $ 1,891,638 $ 1,862,350 Earnings before provision for income taxes: Segment operating earnings: SBS $ 80,940 $ 100,063 $ 181,563 $ 195,191 BSG 46,008 47,843 104,554 96,415 Segment operating earnings 126,948 147,906 286,117 291,606 Unallocated expenses 40,487 71,764 85,777 110,910 Restructuring — 631 1,099 863 Consolidated operating earnings 86,461 75,511 199,241 179,833 Interest expense 19,896 23,883 40,137 49,861 Earnings before provision for income taxes $ 66,565 $ 51,628 $ 159,104 $ 129,972 Sales between segments, which are eliminated in consolidation, were not material during the three and six months ended March 31, 2022 and 2021. Disaggregation of net sales by segment The following tables disaggregate our segment revenues by merchandise category. We have reclassified certain prior year amounts to conform to current year presentation. Three Months Ended March 31, Six Months Ended March 31, SBS 2022 2021 2022 2021 Hair color 38.1 % 35.8 % 37.4 % 35.9 % Hair care 24.1 % 21.7 % 24.0 % 21.4 % Styling tools and supplies 19.2 % 22.8 % 19.7 % 22.9 % Nail 10.6 % 10.7 % 10.5 % 10.8 % Skin and cosmetics 7.4 % 8.3 % 7.7 % 8.3 % Other beauty items 0.6 % 0.7 % 0.7 % 0.7 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2022 2021 2022 2021 Hair color 42.7 % 42.6 % 42.4 % 41.4 % Hair care 39.9 % 38.8 % 39.9 % 39.0 % Styling tools and supplies 11.2 % 11.2 % 11.3 % 11.8 % Skin and cosmetics 3.5 % 4.0 % 4.0 % 4.3 % Nail 2.3 % 2.9 % 2.1 % 3.1 % Other beauty items 0.4 % 0.5 % 0.3 % 0.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % The following tables disaggregate our segment revenue by sales channels: Three Months Ended March 31, Six Months Ended March 31, SBS 2022 2021 2022 2021 Company-operated stores 93.7 % 93.0 % 94.0 % 93.5 % E-commerce 6.3 % 6.9 % 6.0 % 6.5 % Franchise stores 0.0 % 0.1 % 0.0 % 0.0 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2022 2021 2022 2021 Company-operated stores 66.6 % 70.2 % 67.1 % 69.9 % Distributor sales consultants 14.0 % 13.7 % 13.8 % 14.0 % E-commerce 12.4 % 9.1 % 12.0 % 8.8 % Franchise stores 7.0 % 7.0 % 7.1 % 7.3 % Total 100.0 % 100.0 % 100.0 % 100.0 %

Subsequent Event

Subsequent Event	6 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Event	10. Subsequent Event On April 29, 2022, we announced that our wholly-owned subsidiaries, Sally Holdings LLC (“Holdings”) and Sally Capital Inc. (together with Holdings, the “Issuers”), issued a notice of redemption (the “Redemption Notice”), to redeem on May 31, 2022, the entire $300.00 million aggregate principal amount of the 8.750% Senior Secured Second Lien Notes due 2025 (“Notes”) which remain outstanding. The redemption is being made pursuant to the terms of the Indenture dated April 24, 2020, at a redemption price equal to 104.375% of the principal amount of the Notes plus accrued but unpaid interest to, but not including, the redemption date.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Business Operations	Business Operations Sally Beauty Holdings is an international specialty retailer and distributor of professional beauty supplies with operations in North America, South America and Europe. We are one of the largest distributers of professional beauty supplies in the U.S. based on store count, operating under two segments, Sally Beauty Supply (“SBS”) and Beauty Systems Group (“BSG”). Our operations consist of company-operated stores, franchise stores and several e-commerce platforms. Within BSG, we also have one of the largest networks of distributor sales consultants (“DSCs”) for professional beauty products in North America, who sell directly to salons and salon professionals. SBS targets retail consumers, salons and salon professionals, while BSG targets salons and salons professionals.
Basis of Presentation	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 included herein are adequate for the interim period presented. 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, 2021. 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 March 31, 2022 and September 30, 2021, and our consolidated results of operations, consolidated comprehensive income, consolidated statements of stockholders’ equity for the three and six months ended March 31, 2022 and 2021 and our consolidated cash flows for the for the six months ended March 31, 2022 and 2021.
Principles of Consolidation	Principles of Consolidation The condensed consolidated interim financial statements include all accounts of Sally Beauty Holdings, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. All amounts are in U.S. Dollars.
Accounting Policies	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 our estimated annual effective income tax.
Use of Estimates	Use of Estimates In order to present our financial statements in conformity with GAAP, we are required to make certain estimates and assumptions that impact our interim financial statements and supplementary disclosures. These estimates may use forecasted financial information based on reasonable information available, however are subject to change in the future. Additionally, unknown future impacts of COVID-19 may impact those estimates and assumptions as well. Significant estimates and assumptions are part of our accounting for sales allowances, deferred revenue, valuation of inventory, amortization and depreciation, intangibles and goodwill, and other reserves. We believe these estimates and assumptions are reasonable however they are based on management’s current knowledge of events and actions and changes in facts and circumstances may result in revised estimates, and impact actual results.
Impact of COVID-19	Impact of COVID-19 Our operating results for the three and six months ended March 31, 2022, were adversely impacted by the COVID-19 pandemic and its continuing effects on the economy, including inflationary pressures, continued supply chain disruptions, increased freight costs, labor shortages and increased labor costs. Given the uncertainty around the continuing effects of the COVID-19 pandemic and its economic impact we cannot reasonably predict the effect they will have on future periods. If we become materially and adversely impacted, we may have to consider adjustments to our strategic plans, inventory, liquidity, operational and capital expenditure plans.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Mar. 31, 2022
Revenue From Contract With Customer [Abstract]
Schedule of Changes to Contract Liabilities	Changes to our contract liabilities, which are included in accrued liabilities in our condensed balance sheets, for the periods were as follows (in thousands): Six Months Ended March 31, 2022 2021 Beginning Balance $ 16,744 $ 13,947 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 6,214 7,998 Revenue recognized from beginning liability (6,316 ) (6,729 ) Ending Balance $ 16,642 $ 15,216

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Schedule of financial assets and liabilities and other fair value disclosures by fair value hierarchy	Financial instruments measured on recurring basis Consistent with the three-level hierarchy defined in ASC Topic 820, Fair Value Measurement (in thousands) Classification Fair Value Hierarchy Level March 31, 2022 September 30, 2021 Financial Assets: Foreign exchange contracts Other current assets Level 2 $ 329 $ — Interest rate caps Other assets Level 2 133 35 Total assets $ 462 $ 35 . Financial Liabilities: Foreign exchange contracts Accrued liabilities Level 2 $ 612 $ — Financial instruments not measured at fair value Carrying amounts and the related estimated fair value of our long-term debt, excluding capital lease obligations and debt issuance costs, are as follows: March 31, 2022 September 30, 2021 (in thousands) Fair Value Hierarchy Level Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding capital leases Senior notes Level 1 $ 979,961 $ 1,000,636 $ 979,961 $ 1,019,635 Term loan B Level 2 410,250 405,122 413,000 411,451 Total long-term debt $ 1,390,211 $ 1,405,758 $ 1,392,961 $ 1,431,086

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Mar. 31, 2022
Stockholders Equity Note [Abstract]
Schedule of Shares Repurchased and Subsequently Retired	Information related to our shares repurchased and subsequently retired were as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Number of shares repurchased 3,157 — 6,832 — Total cost of share repurchased $ 55,328 $ — $ 130,328 $ —
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, 2021 $ (92,154 ) $ (2,085 ) $ (402 ) $ (94,641 ) Other comprehensive loss before reclassification, net of tax (7,261 ) (114 ) (212 ) (7,587 ) Reclassification to net earnings, net of tax — 392 368 760 Balance at March 31, 2022 $ (99,415 ) $ (1,807 ) $ (246 ) $ (101,468 )

Weighted-Average Shares (Tables

Weighted-Average Shares (Tables)	6 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Schedule of reconciliation of basic and diluted weighted-average shares	The following table sets forth the reconciliation of basic and diluted weighted-average shares (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Weighted-average basic shares 108,743 112,603 110,387 112,538 Dilutive securities: Stock option and stock award programs 1,797 1,739 1,820 1,490 Weighted-average diluted shares 110,540 114,342 112,207 114,028 Anti-dilutive options excluded from our computation of diluted shares 2,534 4,197 2,169 4,222

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Mar. 31, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets Amortization Expense	Three Months Ended March 31, Six Months Ended March 31, (in thousands) 2022 2021 2022 2021 Intangible assets amortization expense $ 999 $ 1,609 $ 2,070 $ 3,307

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Mar. 31, 2022
Payables And Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consist of the following (in thousands): March 31, 2022 September 30, 2021 Compensation and benefits $ 55,300 $ 73,344 Interest payable 24,103 24,101 Deferred revenue 18,410 18,543 Rental obligations 10,754 10,501 Insurance reserves 5,962 5,934 Property and other taxes 2,293 3,853 Operating accruals and other 53,718 69,879 Total accrued liabilities $ 170,540 $ 206,155

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	6 Months Ended
	Mar. 31, 2022
Foreign Currency Forwards
Schedule of notional amount held through foreign currency forwards, based upon exchange rates	At March 31, 2022, we held forwards, which expire ratably through September 30, 2022, with a notional amount, based upon exchange rates at March 31, 2022, as follows (in thousands): Notional Currency Notional Amount Mexican Peso $ 13,013 Euro 8,551 Canadian Dollar 5,804 Total $ 27,368

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Schedule of segment data	Segment data for the three and six months ended March 31, 2022 and 2021, is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Net sales: Sally Beauty Supply ("SBS") $ 525,785 $ 542,664 $ 1,087,315 $ 1,090,334 Beauty Systems Group ("BSG") 385,602 383,664 804,323 772,016 Total $ 911,387 $ 926,328 $ 1,891,638 $ 1,862,350 Earnings before provision for income taxes: Segment operating earnings: SBS $ 80,940 $ 100,063 $ 181,563 $ 195,191 BSG 46,008 47,843 104,554 96,415 Segment operating earnings 126,948 147,906 286,117 291,606 Unallocated expenses 40,487 71,764 85,777 110,910 Restructuring — 631 1,099 863 Consolidated operating earnings 86,461 75,511 199,241 179,833 Interest expense 19,896 23,883 40,137 49,861 Earnings before provision for income taxes $ 66,565 $ 51,628 $ 159,104 $ 129,972
Schedule of disaggregation of net sales by segment	Disaggregation of net sales by segment The following tables disaggregate our segment revenues by merchandise category. We have reclassified certain prior year amounts to conform to current year presentation. Three Months Ended March 31, Six Months Ended March 31, SBS 2022 2021 2022 2021 Hair color 38.1 % 35.8 % 37.4 % 35.9 % Hair care 24.1 % 21.7 % 24.0 % 21.4 % Styling tools and supplies 19.2 % 22.8 % 19.7 % 22.9 % Nail 10.6 % 10.7 % 10.5 % 10.8 % Skin and cosmetics 7.4 % 8.3 % 7.7 % 8.3 % Other beauty items 0.6 % 0.7 % 0.7 % 0.7 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2022 2021 2022 2021 Hair color 42.7 % 42.6 % 42.4 % 41.4 % Hair care 39.9 % 38.8 % 39.9 % 39.0 % Styling tools and supplies 11.2 % 11.2 % 11.3 % 11.8 % Skin and cosmetics 3.5 % 4.0 % 4.0 % 4.3 % Nail 2.3 % 2.9 % 2.1 % 3.1 % Other beauty items 0.4 % 0.5 % 0.3 % 0.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % The following tables disaggregate our segment revenue by sales channels: Three Months Ended March 31, Six Months Ended March 31, SBS 2022 2021 2022 2021 Company-operated stores 93.7 % 93.0 % 94.0 % 93.5 % E-commerce 6.3 % 6.9 % 6.0 % 6.5 % Franchise stores 0.0 % 0.1 % 0.0 % 0.0 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2022 2021 2022 2021 Company-operated stores 66.6 % 70.2 % 67.1 % 69.9 % Distributor sales consultants 14.0 % 13.7 % 13.8 % 14.0 % E-commerce 12.4 % 9.1 % 12.0 % 8.8 % Franchise stores 7.0 % 7.0 % 7.1 % 7.3 % Total 100.0 % 100.0 % 100.0 % 100.0 %

Significant Accounting Polici_3

Significant Accounting Policies - Additional Information (Details)	6 Months Ended
	Mar. 31, 2022segment
Accounting Policies [Abstract]
Number of segments	2

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Changes to Contract Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Contract With Customer Liability [Abstract]
Beginning Balance	$ 16,744	$ 13,947
Loyalty points and gift cards issued but not redeemed, net of estimated breakage	6,214	7,998
Revenue recognized from beginning liability	(6,316)	(6,729)
Ending Balance	$ 16,642	$ 15,216

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021
Long-term debt, excluding capital leases
Long-term debt, excluding capital leases, Carrying Value	$ 1,390,211	$ 1,392,961
Long-term debt, excluding capital leases, Fair Value	1,405,758	1,431,086
Level 2 | Term loan B
Long-term debt, excluding capital leases
Long-term debt, excluding capital leases, Carrying Value	410,250	413,000
Long-term debt, excluding capital leases, Fair Value	405,122	411,451
Level 1 | Senior notes
Long-term debt, excluding capital leases
Long-term debt, excluding capital leases, Carrying Value	979,961	979,961
Long-term debt, excluding capital leases, Fair Value	1,000,636	1,019,635
Fair Value, Recurring
Financial Assets:
Total assets	462	35
Fair Value, Recurring | Level 2 | Other current assets
Financial Assets:
Foreign exchange contracts	329
Fair Value, Recurring | Level 2 | Other assets
Financial Assets:
Interest rate caps	133	$ 35
Fair Value, Recurring | Level 2 | Accrued Liabilities
Financial Liabilities:
Foreign exchange contracts	$ 612

Stockholders' Equity - Share Re

Stockholders' Equity - Share Repurchase Program (Details) - 2017 Share Repurchase program - USD ($)	1 Months Ended
	Jul. 31, 2021	Mar. 31, 2022	Aug. 31, 2017
Share Repurchase Program
Amount of shares authorized to be repurchased		$ 595,800,000	$ 1,000,000,000
Term of share repurchase program, extended	4 years
Stock repurchase program, expiration date	Sep. 30, 2025

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Shares Repurchased and Subsequently Retired (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2022
Stockholders Equity Note [Abstract]
Number of shares repurchased	3,157	6,832
Total cost of share repurchased	$ 55,328	$ 130,328

Stockholders' Equity - Change i

Stockholders' Equity - Change in AOCL (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2022USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	$ 280,741
Balance	271,866
Interest rate caps
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(2,085)
Other comprehensive loss before reclassification, net of tax	(114)
Reclassification to net earnings, net of tax	392
Balance	(1,807)
Foreign exchange contracts
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(402)
Other comprehensive loss before reclassification, net of tax	(212)
Reclassification to net earnings, net of tax	368
Balance	(246)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(92,154)
Other comprehensive loss before reclassification, net of tax	(7,261)
Balance	(99,415)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(94,641)
Other comprehensive loss before reclassification, net of tax	(7,587)
Reclassification to net earnings, net of tax	760
Balance	$ (101,468)

Weighted-Average Shares (Detail

Weighted-Average Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share Reconciliation:
Weighted-average basic shares	108,743	112,603	110,387	112,538
Dilutive securities:
Stock option and stock award programs	1,797	1,739	1,820	1,490
Weighted-average diluted shares	110,540	114,342	112,207	114,028
Anti-dilutive options excluded from our computation of diluted shares	2,534	4,197	2,169	4,222

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - (Details) - USD ($)	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment losses in connection with the goodwill	$ 0	$ 0
Impairment losses in connection with the intangible assets	0	$ 0
Goodwill, decreased from effects of foreign currency exchange rates	$ 1,500,000

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Summary of Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense	$ 999	$ 1,609	$ 2,070	$ 3,307

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021
Accrued Liabilities
Compensation and benefits	$ 55,300	$ 73,344
Interest payable	24,103	24,101
Deferred revenue	18,410	18,543
Rental obligations	10,754	10,501
Insurance reserves	5,962	5,934
Property and other taxes	2,293	3,853
Operating accruals and other	53,718	69,879
Total accrued liabilities	$ 170,540	$ 206,155

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - (Details)	3 Months Ended		6 Months Ended
	Mar. 31, 2022USD ($)instrument	Mar. 31, 2021USD ($)	Mar. 31, 2022USD ($)instrument	Mar. 31, 2021USD ($)	Jul. 31, 2017USD ($)derivative
Derivative Instruments
Number of derivative instruments held | instrument	0		0
Interest expense	$ 19,896,000	$ 23,883,000	$ 40,137,000	$ 49,861,000
Foreign Currency Forwards
Derivative Instruments
Derivative instruments, expiration date			Sep. 30, 2022
Notional Amount	27,368,000		$ 27,368,000
Foreign Currency Forwards | Reclassification out of Accumulated Other Comprehensive Income
Derivative Instruments
Foreign currency forwards designated as cash flow hedges to be reclassified gain (loss)			(400,000)	400,000
Foreign currency forwards designated as cash flow hedges to be reclassified losses into cost of goods sold over next 12 months	100,000		$ 100,000
Interest rate caps | Variable-rate tranche | Sally Holdings, LLC
Derivative Instruments
Derivative instruments, expiration date			Jun. 30, 2023
Notional Amount					$ 550,000,000
Number of interest rate caps | derivative					2
Interest expense			$ 400,000	$ 200,000
Interest rate caps | Term loan B variable tranche | Sally Holdings, LLC
Derivative Instruments
Interest rate caps designated as cash flow hedges to be reclassified into interest expense over next 12 months	$ 1,900,000		$ 1,900,000

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Schedule of Notional Amount Held Through Foreign Currency Forwards, Based Upon Exchange Rates (Details) $ in Thousands	Mar. 31, 2022USD ($)
Foreign Currency Forwards
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 27,368
Mexican Peso
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	13,013
Euro
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	8,551
Canadian Dollar
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 5,804

Business Segments (Details)

Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Net sales:
Total net sales	$ 911,387	$ 926,328	$ 1,891,638	$ 1,862,350
Segment operating earnings:
Segment operating earnings	86,461	75,511	199,241	179,833
Restructuring		631	1,099	863
Interest expense	19,896	23,883	40,137	49,861
Earnings before provision for income taxes	66,565	51,628	159,104	129,972
Operating segments
Segment operating earnings:
Segment operating earnings	126,948	147,906	286,117	291,606
Corporate
Segment operating earnings:
Unallocated expenses	40,487	71,764	85,777	110,910
Sally Beauty Supply
Net sales:
Total net sales	525,785	542,664	1,087,315	1,090,334
Sally Beauty Supply | Operating segments
Segment operating earnings:
Segment operating earnings	80,940	100,063	181,563	195,191
Beauty Systems Group
Net sales:
Total net sales	385,602	383,664	804,323	772,016
Beauty Systems Group | Operating segments
Segment operating earnings:
Segment operating earnings	$ 46,008	$ 47,843	$ 104,554	$ 96,415

Business Segments - Schedule of

Business Segments - Schedule of Disaggregation of Net Sales by Segment (Details) - Sales Revenue, Net - Product Concentration Risk	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Sally Beauty Supply
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%	100.00%
Sally Beauty Supply | Hair color
Disaggregation Of Revenue [Line Items]
Percentage of net sales	38.10%	35.80%	37.40%	35.90%
Sally Beauty Supply | Hair care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	24.10%	21.70%	24.00%	21.40%
Sally Beauty Supply | Styling tools and supplies
Disaggregation Of Revenue [Line Items]
Percentage of net sales	19.20%	22.80%	19.70%	22.90%
Sally Beauty Supply | Nail
Disaggregation Of Revenue [Line Items]
Percentage of net sales	10.60%	10.70%	10.50%	10.80%
Sally Beauty Supply | Skin and cosmetics
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.40%	8.30%	7.70%	8.30%
Sally Beauty Supply | Other Beauty items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	0.60%	0.70%	0.70%	0.70%
Sally Beauty Supply | Sales channel, directly to consumer | Company-operated stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	93.70%	93.00%	94.00%	93.50%
Sally Beauty Supply | Sales channel, through intermediary | E-commerce
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.30%	6.90%	6.00%	6.50%
Sally Beauty Supply | Sales channel, through intermediary | Franchise stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	0.00%	0.10%	0.00%	0.00%
Beauty Systems Group
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%	100.00%
Beauty Systems Group | Hair color
Disaggregation Of Revenue [Line Items]
Percentage of net sales	42.70%	42.60%	42.40%	41.40%
Beauty Systems Group | Hair care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	39.90%	38.80%	39.90%	39.00%
Beauty Systems Group | Styling tools and supplies
Disaggregation Of Revenue [Line Items]
Percentage of net sales	11.20%	11.20%	11.30%	11.80%
Beauty Systems Group | Nail
Disaggregation Of Revenue [Line Items]
Percentage of net sales	2.30%	2.90%	2.10%	3.10%
Beauty Systems Group | Skin and cosmetics
Disaggregation Of Revenue [Line Items]
Percentage of net sales	3.50%	4.00%	4.00%	4.30%
Beauty Systems Group | Other Beauty items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	0.40%	0.50%	0.30%	0.40%
Beauty Systems Group | Sales channel, directly to consumer | Company-operated stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	66.60%	70.20%	67.10%	69.90%
Beauty Systems Group | Sales channel, through intermediary | Distributor sales consultants
Disaggregation Of Revenue [Line Items]
Percentage of net sales	14.00%	13.70%	13.80%	14.00%
Beauty Systems Group | Sales channel, through intermediary | E-commerce
Disaggregation Of Revenue [Line Items]
Percentage of net sales	12.40%	9.10%	12.00%	8.80%
Beauty Systems Group | Sales channel, through intermediary | Franchise stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.00%	7.00%	7.10%	7.30%

Subsequent Event - Additional I

Subsequent Event - Additional Information (Details) - Senior Secured Second Lien Notes Due 2025 - Sally Holdings LLC and Sally Capital Inc. - Subsequent Event $ in Thousands	Apr. 29, 2022USD ($)
Subsequent Event [Line Items]
Principal outstanding amount	$ 300,000
Interest rate	8.75%
Percentage of redemption price equal to principal amount	104.375%