Sally Beauty (SBH) 10-Q 4 May 23 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2023	Apr. 28, 2023
Cover [Abstract]
Entity Registrant Name	SALLY BEAUTY HOLDINGS, INC.
Entity Central Index Key	0001368458
Document Type	10-Q
Document Period End Date	Mar. 31, 2023
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		107,554,671
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Current assets:
Cash and cash equivalents	$ 61,620	$ 70,558
Trade accounts receivable, net	30,540	34,102
Accounts receivable, other	45,123	38,175
Inventory	1,023,656	936,374
Other current assets	48,072	53,192
Total current assets	1,209,011	1,132,401
Property and equipment, net of accumulated depreciation of $841,760 at March 31, 2023, and $820,811 at September 30, 2022	283,356	297,876
Operating lease assets	562,336	532,177
Goodwill	534,218	526,066
Intangible assets, excluding goodwill, net of accumulated amortization of $29,921 at March 31, 2023, and $26,794 at September 30, 2022	50,533	50,315
Other assets	35,660	38,032
Total assets	2,675,114	2,576,867
Current liabilities:
Current maturities of long-term debt	38,175	68,658
Accounts payable	265,075	275,717
Accrued liabilities	168,187	161,065
Current operating lease liabilities	154,255	157,734
Income taxes payable	4,949	4,740
Total current liabilities	630,641	667,914
Long-term debt	1,065,439	1,083,043
Long-term operating lease liabilities	444,819	424,762
Other liabilities	22,044	22,427
Deferred income tax liabilities, net	86,283	85,085
Total liabilities	2,249,226	2,283,231
Stockholders’ equity:
Common stock, $0.01 par value. Authorized 500,000 shares; 107,556 and 107,024 shares issued and 107,549 and 106,970 shares outstanding at March 31, 2023, and September 30, 2022, respectively	1,076	1,070
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued
Additional paid-in capital	13,790	4,241
Accumulated earnings	531,370	440,172
Accumulated other comprehensive loss, net of tax	(120,348)	(151,847)
Total stockholders’ equity	425,888	293,636
Total liabilities and stockholders’ equity	$ 2,675,114	$ 2,576,867

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Statement Of Financial Position [Abstract]
Property and equipment, accumulated depreciation (in dollars)	$ 841,760	$ 820,811
Intangible assets, excluding goodwill, accumulated amortization (in dollars)	$ 29,921	$ 26,794
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	107,556,000	107,024,000
Common stock, shares outstanding	107,549,000	106,970,000
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, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Net sales	$ 918,712	$ 911,387	$ 1,875,767	$ 1,891,638
Cost of goods sold	450,373	446,055	918,854	926,177
Gross profit	468,339	465,332	956,913	965,461
Selling, general and administrative expenses	389,657	378,871	781,237	765,121
Restructuring	7,274		17,680	1,099
Operating earnings	71,408	86,461	157,996	199,241
Interest expense	16,685	19,896	34,608	40,137
Earnings before provision for income taxes	54,723	66,565	123,388	159,104
Provision for income taxes	13,862	19,757	32,190	43,458
Net earnings	$ 40,861	$ 46,808	$ 91,198	$ 115,646
Earnings per share:
Basic	$ 0.38	$ 0.43	$ 0.85	$ 1.05
Diluted	$ 0.37	$ 0.42	$ 0.83	$ 1.03
Weighted-average shares:
Basic	107,453	108,743	107,294	110,387
Diluted	109,706	110,540	109,499	112,207

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 40,861	$ 46,808	$ 91,198	$ 115,646
Other comprehensive income (loss):
Foreign currency translation adjustments	9,445	(2,752)	35,386	(7,261)
Interest rate caps, net of tax	(2,163)		(1,960)	278
Foreign exchange contracts, net of tax	(1,017)	(324)	(1,927)	156
Other comprehensive income (loss), net of tax	6,265	(3,076)	31,499	(6,827)
Total comprehensive income	$ 47,126	$ 43,732	$ 122,697	$ 108,819

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, 2021	$ 280,741	$ 1,129	$ 17,286	$ 356,967	$ (94,641)
Balance (in shares) at Sep. 30, 2021		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
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
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
Balance at Sep. 30, 2022	$ 293,636	$ 1,070	4,241	440,172	(151,847)
Balance (in shares) at Sep. 30, 2022	106,970	106,970
Increase (Decrease) in Stockholders' Equity
Net earnings	$ 50,337			50,337
Other comprehensive income (loss)	25,234				25,234
Share-based compensation	5,135		5,135
Stock issued for equity awards	82	$ 4	78
Stock issued for equity awards (in shares)		404
Employee withholding taxes paid related to net share settlement	(1,126)	$ (1)	(1,125)
Employee withholding taxes paid related to net share settlement (in shares)		(90)
Balance at Dec. 31, 2022	373,298	$ 1,073	8,329	490,509	(126,613)
Balance (in shares) at Dec. 31, 2022		107,284
Balance at Sep. 30, 2022	$ 293,636	$ 1,070	4,241	440,172	(151,847)
Balance (in shares) at Sep. 30, 2022	106,970	106,970
Increase (Decrease) in Stockholders' Equity
Net earnings	$ 91,198
Other comprehensive income (loss)	31,499
Balance at Mar. 31, 2023	$ 425,888	$ 1,076	13,790	531,370	(120,348)
Balance (in shares) at Mar. 31, 2023	107,549	107,549
Balance at Dec. 31, 2022	$ 373,298	$ 1,073	8,329	490,509	(126,613)
Balance (in shares) at Dec. 31, 2022		107,284
Increase (Decrease) in Stockholders' Equity
Net earnings	40,861			40,861
Other comprehensive income (loss)	6,265				6,265
Share-based compensation	3,838		3,838
Stock issued for equity awards	1,641	$ 3	1,638
Stock issued for equity awards (in shares)		266
Employee withholding taxes paid related to net share settlement	(15)		(15)
Employee withholding taxes paid related to net share settlement (in shares)		(1)
Balance at Mar. 31, 2023	$ 425,888	$ 1,076	$ 13,790	$ 531,370	$ (120,348)
Balance (in shares) at Mar. 31, 2023	107,549	107,549

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities:
Net earnings	$ 91,198	$ 115,646
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation and amortization	50,347	48,471
Share-based compensation expense	8,973	5,990
Amortization of deferred financing costs	1,311	1,865
Loss on early extinguishment of debt	601
Impairment of long-lived assets, including operating lease assets	1,765
Loss on disposal of equipment and other property	2	80
Deferred income taxes	862	6,507
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable	4,632	3,800
Accounts receivable, other	(5,805)	2,108
Inventory	(68,355)	(95,468)
Other current assets	6,053	(6,273)
Other assets	2,201	1,979
Operating leases, net	(14,286)	3,657
Accounts payable and accrued liabilities	108	(70,217)
Income taxes payable	434	(8,393)
Other liabilities	(393)	(12,525)
Net cash provided (used) by operating activities	79,648	(2,773)
Cash Flows from Investing Activities:
Payments for property and equipment, net of proceeds	(42,181)	(44,109)
Acquisitions, net of cash acquired		(318)
Net cash used by investing activities	(42,181)	(44,427)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	853,000
Repayments of long-term debt	(898,093)	(2,841)
Payments for common stock repurchased		(130,328)
Proceeds from equity awards	1,723	7,796
Debt issuance costs	(4,726)
Employee withholding taxes paid related to net share settlement of equity awards	(1,141)	(1,151)
Net cash used by financing activities	(49,237)	(126,524)
Effect of foreign exchange rate changes on cash and cash equivalents	2,832	178
Net decrease in cash and cash equivalents	(8,938)	(173,546)
Cash and cash equivalents, beginning of period	70,558	400,959
Cash and cash equivalents, end of period	61,620	227,413
Supplemental Cash Flow Information:
Interest paid	35,191	37,809
Income taxes paid	32,077	56,701
Capital expenditures incurred but not paid	$ 5,466	$ 3,205

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Significant Accounting Policies	1. Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated interim financial statements of Sally Beauty Holdings, Inc. and its subsidiaries 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, 2022. In the opinion of management, these unaudited 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, 2023, and September 30, 2022, our consolidated results of operations, consolidated comprehensive income and consolidated statements of stockholders’ equity for the three and six months ended March 31, 2023 and 2022 and our consolidated cash flows for the for the six months ended March 31, 2023 and 2022 Principles of Consolidation The unaudited 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. 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.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Mar. 31, 2023
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 consolidated balance sheets, for the periods were as follows (in thousands): Six Months Ended March 31, 2023 2022 Beginning Balance $ 13,460 $ 16,744 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 9,327 6,214 Revenue recognized from beginning liability (8,370 ) (6,316 ) Ending Balance $ 14,417 $ 16,642 See Note 10, Segment Reporting

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair Value Measurements We measure on a recurring basis and disclose the fair value of our financial instruments under the provisions of ASC Topic 820, Fair Value Measurement, as amended (“ASC 820”). We define “fair value” as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level hierarchy for measuring fair value and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. This valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels of that hierarchy are defined as follows: Level 1 - Quoted prices are available in active markets for identical assets or liabilities; Level 2 - Pricing inputs are other than quoted prices in active markets, included in Level 1, that are either directly or indirectly observable; and Level 3 - Unobservable pricing inputs in which little or no market activity exists, therefore requiring an entity to develop its own model with estimates and assumptions. Financial instruments measured at fair value on recurring basis Consistent with the fair value hierarchy, we categorized our financial assets and liabilities as follow: (in thousands) Classification Fair Value Hierarchy Level March 31, 2023 September 30, 2022 Financial Assets: Foreign exchange contracts Non-designated cash flow hedges Other current assets Level 2 $ 327 $ 294 Interest rate caps Other current assets Level 2 — 3,860 Total assets $ 327 $ 4,154 . Financial Liabilities: Foreign exchange contracts Designated cash flow hedges Accrued liabilities Level 2 $ 2,300 $ — Non-designated cash flow hedges Accrued liabilities Level 2 1,887 79 Total liabilities $ 4,187 $ 79 The fair value for interest rate caps and foreign exchange contracts were measured using widely accepted valuation techniques, such as discounted cash flow analyses and observable inputs, such as market interest rates and foreign exchange rates. Other fair value disclosures The carrying amounts of cash equivalents, trade and other accounts receivable and accounts payable and borrowing under our ABL facility approximate their respective fair values due to the short-term nature of these financial instruments. Carrying amounts and the related estimated fair value of our long-term debt, excluding finance lease obligations, debt issuance costs and original issue discounts, are as follows: March 31, 2023 September 30, 2022 (in thousands) Fair Value Hierarchy Level Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding capital leases Senior notes Level 1 $ 679,961 $ 668,062 $ 679,961 $ 639,163 Term loan B due 2024 Level 2 — — 407,500 398,331 Term loan B due 2030 Level 2 400,000 398,500 — — Total long-term debt $ 1,079,961 $ 1,066,562 $ 1,087,461 $ 1,037,494 The fair value of the term loan B was measured using quoted market prices for similar debt securities in active markets or widely accepted valuation techniques, such as discounted cash flow analyses, using observable inputs, such as market interest rates.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Mar. 31, 2023
Stockholders Equity Note [Abstract]
Stockholders' Equity	4. Stockholders’ Equity Share Repurchases In August 2017, our Board of Directors (“Board”) approved a share repurchase program authorizing us 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 approved a term extension of the share repurchase program for the four-year Accumulated Other Comprehensive Income (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, 2022 $ (153,128 ) $ 1,960 $ (679 ) $ (151,847 ) Other comprehensive loss before reclassification, net of tax 35,386 817 (1,815 ) 34,388 Reclassification to net earnings, net of tax — (2,777 ) (112 ) (2,889 ) Balance at March 31, 2023 $ (117,742 ) $ — $ (2,606 ) $ (120,348 ) 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, 2023
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, 2023 2022 2023 2022 Weighted-average basic shares 107,453 108,743 107,294 110,387 Dilutive securities: Stock option and stock award programs 2,253 1,797 2,205 1,820 Weighted-average diluted shares 109,706 110,540 109,499 112,207 Anti-dilutive options excluded from our computation of diluted shares 1,964 2,534 1,964 2,169

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Mar. 31, 2023
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	6. Goodwill and Intangible Assets During the three months ended March 31, 2023, we completed our annual assessments for impairment of goodwill and indefinite-lived intangible assets. For our goodwill testing, we performed a qualitative analysis and determined that there was no indication of impairment requiring further quantitative testing. No material impairment losses were recognized in the current or prior periods presented in connection with our goodwill and intangible assets. Three Months Ended March 31, Six Months Ended March 31, (in thousands) 2023 2022 2023 2022 Intangible assets amortization expense $ 866 $ 999 $ 1,875 $ 2,070 Additionally, during the six months ended March 31, 2023, the changes in goodwill and other intangibles included effects of foreign currency exchange rates of $8.2 million and $2.1 million, respectively.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Mar. 31, 2023
Payables And Accruals [Abstract]
Accrued Liabilities	7. Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, 2023 September 30, 2022 Compensation and benefits $ 66,868 $ 58,693 Deferred revenue 18,980 18,810 Rental obligations 12,766 10,701 Insurance reserves 6,111 5,742 Property and other taxes 3,022 4,161 Interest payable 13,699 13,445 Operating accruals and other 46,741 49,513 Total accrued liabilities $ 168,187 $ 161,065

Short-term Borrowings and Long-

Short-term Borrowings and Long-term Debt	6 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Short-term Borrowings and Long-term Debt	8. Short-term Borrowings and Long-term Debt At March 31, 2023, our ABL facility had $34.0 million in outstanding borrowings as reduced by outstanding letters of credit On February 28, 2023, we announced that our wholly-owned subsidiaries, Sally Holdings LLC (“Sally Holdings”) and Sally Capital, Inc. (“Sally Capital” and, together with Sally Holdings, the “Borrowers”), and certain of our other direct and indirect subsidiaries entered into a credit agreement with Bank of America, N.A., as Administrative Agent and Collateral Agent, and the lenders and other parties thereto providing for a term loan B facility (“TLB 2030”) in an aggregate principal amount equal to $400.0 million, the net proceeds of which were used to repay an existing term loan B facility (“TLB 2024”). The TLB 2030 will bear interest at a floating rate equal to, at the Borrowers option, either the Adjusted Term SOFR Rate from time to time in effect plus 2.50% or an adjusted base rate plus 1.50%, payable quarterly on March 31, June 30, September 30 and December 31 of each year. The TLB 2030 matures on the earlier of (i) February 28, 2030 and (ii) the date that is 91 days prior to the stated maturity of the Borrowers’ 2025 Senior Unsecured Notes (the “2025 Senior Unsecured Notes”) unless all amounts exceeding $200.0 million of the 2025 Senior Unsecured Notes are refinanced or repaid according to certain conditions (the “Maturity Date”). The principal of the TLB 2030 is repayable in quarterly installments equal to 0.25% of the original principal amount of the TLB 2030, with a final installment equal to the entire remaining outstanding principal amount due on the Maturity Date. TLB 2030 was issued at a discount of 0.75% and we incurred $4.7 million in issuance costs; both of which are being amortized using the effective interest method. The TLB 2030 is secured by a first-priority lien in and upon substantially all of the assets of the Company and its domestic subsidiaries other than the accounts, inventory (and the proceeds thereof) and other assets that secure Sally Holdings’ existing ABL facility on a first-priority basis (the “ABL Priority Collateral”). Additionally, the TLB 2030 is secured by a second-priority lien in and upon the ABL Priority Collateral. The TLB 2030 does not contain any financial maintenance covenants and is subject to a covenant package that is substantially consistent with the covenant package governing the 2025 Senior Unsecured Notes. The TLB 2030 is subject to customary asset sale mandatory prepayment provisions and excess cash flow mandatory prepayment provisions. The TLB 2030 is subject to a prepayment premium of 1.0% of the principal amount thereof upon any refinancing or amendment thereof that results in a reduced effective yield (subject to certain exceptions) within six months following the closing. Thereafter, the TLB 2030 may be prepaid without penalty or premium, other than customary breakage costs for prepayments that are made prior to the last date of an interest period. The repayment of our TLB 2024, in the aggregate outstanding principal amount of $406.1 million, was made pursuant to the terms of the indenture dated February 28, 2017, at par plus interest accrued but unpaid up to, though not including, the repayment date. In connection with the repayment, we recognized a loss on the extinguishment of debt of $0.6 million within interest expense, which included the write-off of unamortized discount and deferred financing costs of $0.2 million and $0.4 million, respectively.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	6 Months Ended
	Mar. 31, 2023
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	9. Derivative Instruments and Hedging Activities During the six months ended March 31, 2023, 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 forecasted inventory purchases in U.S. dollars by our foreign subsidiaries. At March 31, 2023, we held forwards, which expire ratably through September 30, 2023, with a notional amount, based upon exchange rates at March 31, 2023, as follows (in thousands): Notional Currency Notional Amount Mexican Peso $ 12,846 Euro 7,699 Canadian Dollar 6,284 Total $ 26,829 Quarterly, the changes in fair value related to these 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 three months ended March 31, 2023 and 2022, we recognized losses of $0.2 million and $0.1 million, respectively. For the six months ended March 31, 2023 and 2022, we recognized a gain of $0.1 million and a loss of $0.4 million, respectively. Based on March 31, 2023, valuations and exchange rates, we expect to reclassify losses of approximately $3.1 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 TLB 2024. The interest rate caps were comprised of individual caplets that were expiring ratably through June 30, 2023, and were designated as cash flow hedges. Accordingly, the changes in fair value of the interest rate caps were recorded quarterly, net of income tax, and included in AOCL. During the three months ended March 31, 2023, we early settled both interest rate caps due to the forecasted transactions being hedged no longer occurring as a result of the repayment of our TLB 2024. In connection with the early settlement, we received approximately $2.7 million, which represented the fair value at the time of settlement. Furthermore, we released the remaining AOCL balances related to the interest rate caps into interest expense. For the three months ended March 31, 2023, we recognized income of $2.8 million into interest expense on our condensed consolidated statements of earnings related to the caps. 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. For the six months ended March 31, 2023 and 2022, we recognized income of $2.8 million and expense of $0.4 million, respectively, into interest expense on our condensed consolidated statements of earnings related to the caps. Non-Designated Derivative Instruments We also use foreign exchange contracts to mitigate our exposure to exchange rate changes in connection with certain intercompany balances not permanently invested. At March 31, 2023, we held forwards, which expire on various dates in the first month of both the third and fourth fiscal quarters of fiscal year 2023, with a notional amount, based upon exchange rates at March 31, 2023, as follows (in thousands): Notional Currency Notional Amount British Pound $ 51,936 Canadian Dollar 13,491 Euro 21,173 Mexican Peso 26,175 Total $ 112,775 We record changes in fair value and realized gains or losses related to these foreign currency forwards into selling, general and administrative expenses. For the three months ended March 31, 2023 and 2022, the effects of these foreign exchange contracts on our condensed consolidated financial statements were losses of $1.5 million and $0.2 million, respectively. For the six months ended March 31, 2023 and 2022, the effects of these foreign exchange contracts on our condensed consolidated financial statements were a loss of $1.1 million and a gain of $0.1 million, respectively.

Segment Reporting

Segment Reporting	6 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Segment Reporting	10. Segment Reporting Segment data for the three and six months ended March 31, 2023 and 2022, is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Net sales: Sally Beauty Supply ("SBS") $ 530,246 $ 525,785 $ 1,079,718 $ 1,087,315 Beauty Systems Group ("BSG") 388,466 385,602 796,049 804,323 Total $ 918,712 $ 911,387 $ 1,875,767 $ 1,891,638 Earnings before provision for income taxes: Segment operating earnings: SBS $ 92,134 $ 80,940 $ 191,308 $ 181,563 BSG 37,260 46,008 86,907 104,554 Segment operating earnings 129,394 126,948 278,215 286,117 Unallocated expenses 50,712 40,487 102,539 85,777 Restructuring 7,274 — 17,680 1,099 Consolidated operating earnings 71,408 86,461 157,996 199,241 Interest expense 16,685 19,896 34,608 40,137 Earnings before provision for income taxes $ 54,723 $ 66,565 $ 123,388 $ 159,104 Sales between segments, which are eliminated in consolidation, were not material during the three and six months ended March 31, 2023 and 2022. Disaggregation of net sales by segment The following tables disaggregate our segment revenues by merchandise category. We have reclassified certain prior year amounts within BSG to conform to current year presentation. Three Months Ended March 31, Six Months Ended March 31, SBS 2023 2022 2023 2022 Hair color 39.8 % 38.1 % 39.2 % 37.4 % Hair care 24.3 % 24.1 % 23.9 % 24.0 % Styling tools and supplies 17.9 % 19.2 % 18.7 % 19.7 % Nail 10.0 % 10.6 % 10.2 % 10.5 % Skin and cosmetics 7.5 % 7.4 % 7.4 % 7.7 % Other beauty items 0.5 % 0.6 % 0.6 % 0.7 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2023 2022 2023 2022 Hair care 42.0 % 43.1 % 42.8 % 43.3 % Hair color 40.6 % 39.5 % 39.4 % 38.9 % Styling tools and supplies 10.8 % 11.2 % 10.8 % 11.3 % Skin and cosmetics 3.7 % 3.5 % 4.1 % 3.9 % Nail 2.7 % 2.3 % 2.7 % 2.2 % Other beauty items 0.2 % 0.4 % 0.2 % 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 2023 2022 2023 2022 Company-operated stores 93.6 % 93.7 % 93.6 % 94.0 % E-commerce 6.4 % 6.3 % 6.4 % 6.0 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2023 2022 2023 2022 Company-operated stores 67.5 % 66.6 % 66.9 % 67.1 % E-commerce 13.7 % 12.4 % 13.7 % 12.0 % Distributor sales consultants 11.4 % 14.0 % 12.0 % 13.8 % Franchise stores 7.4 % 7.0 % 7.4 % 7.1 % Total 100.0 % 100.0 % 100.0 % 100.0 %

Restructuring

Restructuring	6 Months Ended
	Mar. 31, 2023
Restructuring And Related Activities [Abstract]
Restructuring	11. Restructuring Restructuring expenses, included in Cost of Goods Sold (“COGS”) and Restructuring for the three and six months ended March 31, 2023 and 2022 are as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Included in COGS (a) Distribution Center Consolidation and Store Optimization Plan $ (2,362 ) $ — $ (5,042 ) $ — Included in Restructuring (b) Distribution Center Consolidation and Store Optimization Plan $ 7,274 $ — $ 17,680 $ — Transformation Plan — — — 1,099 Total in Restructuring 7,274 — 17,680 1,099 Total Restructuring Expenses $ 4,912 $ — $ 12,638 $ 1,099 (a) Amounts included within COGS are related to adjustments to our expected obsolescence reserve related to the Plan (as defined below). (b) Amounts included within Restructuring for the current year are related to stores and distribution centers closed during the period in accordance with the Plan (as defined below). Distribution Center Consolidation and Store Optimization Plan In the fourth quarter of fiscal year 2022, our Board approved the Distribution Center Consolidation and Store Optimization Plan (“the Plan”) authorizing the closure of 330 SBS stores and 35 BSG stores, and the closure of two BSG distribution centers in Clackamas, Oregon and Pottsville, Pennsylvania. We believe that consolidating the operation of these two distribution centers into our larger distribution centers will increase product availability, shorten delivery times and reduce overall costs. Stores identified for early closure were part of a strategic evaluation which included a market analysis of certain locations where we believe we will be able to recapture demand at other nearby store locations and improve overall profitability. By optimizing our store base, we are further focusing on our customers’ shopping experience and our product offerings. As of March 31, 2023, we have closed 329 SBS stores and 28 BSG stores as part of the Plan and The liability related to the Plan, which is included in accounts payable and accrued liabilities on our consolidated balance sheets, is as follows: (in thousands) Liability at September 30, 2022 SBS Expense BSG Expense Cash Payments Non-Cash Amounts Liability at March 31, 2023 Closing costs - leases (a) $ — $ 7,389 $ 1,307 $ (5,463 ) $ (1,043 ) $ 2,190 Closing costs - payroll expenses (b) — 1,540 979 (2,458 ) — 61 Impairment - property and equipment (c) — 1,276 193 — (1,469 ) — Inventory transfer costs — 1,158 322 (1,372 ) — 108 Impairment - operating lease assets (c) — 350 244 — (594 ) — Other closure costs (d) 1,291 2,978 (56 ) (2,659 ) — 1,554 Total $ 1,291 $ 14,691 $ 2,989 $ (11,952 ) $ (3,106 ) $ 3,913 (a) Lease-related closing costs include contract terminations costs, repairs, maintenance, and other rental obligations associated with closing stores. (b) Payroll-related closing costs include one-time termination benefits related to the closure of our distribution centers as well as other payroll expenses associated with closing stores. (c) Remaining carrying value for the long-lived assets, including operating lease assets, were not material and approximate their fair value. (d) Other closure costs predominantly consist of exit costs associated with shutting down of operations at various locations.

Subsequent Event

Subsequent Event	6 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Event	12. Subsequent Event In April 2023, we entered into an interest rate swap transaction to help mitigate the risk of our floating rate debt. The notional amount of the swap is $200 million with an effective date of April 28, 2023 and a termination date of April 30, 2026. Under the terms of the swap, we will pay a fixed rate of interest of 3.705% and will receive a floating rate of interest equal to one-month SOFR. The floating rate will be reset monthly and net settlements of interest due to/from the counterparty will also occur monthly. To the extent the floating rate of interest exceeds the fixed rate of interest, we will receive net interest settlements, which will be recorded as a reduction to interest expense. If the fixed rate of interest exceeds the floating rate of interest, we will be required to pay net settlements to the counterparty and will record those net payments in interest expense.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated interim financial statements of Sally Beauty Holdings, Inc. and its subsidiaries 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, 2022. In the opinion of management, these unaudited 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, 2023, and September 30, 2022, our consolidated results of operations, consolidated comprehensive income and consolidated statements of stockholders’ equity for the three and six months ended March 31, 2023 and 2022 and our consolidated cash flows for the for the six months ended March 31, 2023 and 2022
Principles of Consolidation	Principles of Consolidation The unaudited 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. 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.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Mar. 31, 2023
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 consolidated balance sheets, for the periods were as follows (in thousands): Six Months Ended March 31, 2023 2022 Beginning Balance $ 13,460 $ 16,744 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 9,327 6,214 Revenue recognized from beginning liability (8,370 ) (6,316 ) Ending Balance $ 14,417 $ 16,642

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of financial assets and liabilities and other fair value disclosures by fair value hierarchy	Financial instruments measured at fair value on recurring basis Consistent with the fair value hierarchy, we categorized our financial assets and liabilities as follow: (in thousands) Classification Fair Value Hierarchy Level March 31, 2023 September 30, 2022 Financial Assets: Foreign exchange contracts Non-designated cash flow hedges Other current assets Level 2 $ 327 $ 294 Interest rate caps Other current assets Level 2 — 3,860 Total assets $ 327 $ 4,154 . Financial Liabilities: Foreign exchange contracts Designated cash flow hedges Accrued liabilities Level 2 $ 2,300 $ — Non-designated cash flow hedges Accrued liabilities Level 2 1,887 79 Total liabilities $ 4,187 $ 79 Other fair value disclosures The carrying amounts of cash equivalents, trade and other accounts receivable and accounts payable and borrowing under our ABL facility approximate their respective fair values due to the short-term nature of these financial instruments. Carrying amounts and the related estimated fair value of our long-term debt, excluding finance lease obligations, debt issuance costs and original issue discounts, are as follows: March 31, 2023 September 30, 2022 (in thousands) Fair Value Hierarchy Level Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding capital leases Senior notes Level 1 $ 679,961 $ 668,062 $ 679,961 $ 639,163 Term loan B due 2024 Level 2 — — 407,500 398,331 Term loan B due 2030 Level 2 400,000 398,500 — — Total long-term debt $ 1,079,961 $ 1,066,562 $ 1,087,461 $ 1,037,494

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Mar. 31, 2023
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, 2022 $ (153,128 ) $ 1,960 $ (679 ) $ (151,847 ) Other comprehensive loss before reclassification, net of tax 35,386 817 (1,815 ) 34,388 Reclassification to net earnings, net of tax — (2,777 ) (112 ) (2,889 ) Balance at March 31, 2023 $ (117,742 ) $ — $ (2,606 ) $ (120,348 )

Weighted-Average Shares (Tables

Weighted-Average Shares (Tables)	6 Months Ended
	Mar. 31, 2023
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, 2023 2022 2023 2022 Weighted-average basic shares 107,453 108,743 107,294 110,387 Dilutive securities: Stock option and stock award programs 2,253 1,797 2,205 1,820 Weighted-average diluted shares 109,706 110,540 109,499 112,207 Anti-dilutive options excluded from our computation of diluted shares 1,964 2,534 1,964 2,169

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Mar. 31, 2023
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets Amortization Expense	Three Months Ended March 31, Six Months Ended March 31, (in thousands) 2023 2022 2023 2022 Intangible assets amortization expense $ 866 $ 999 $ 1,875 $ 2,070

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Mar. 31, 2023
Payables And Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consist of the following (in thousands): March 31, 2023 September 30, 2022 Compensation and benefits $ 66,868 $ 58,693 Deferred revenue 18,980 18,810 Rental obligations 12,766 10,701 Insurance reserves 6,111 5,742 Property and other taxes 3,022 4,161 Interest payable 13,699 13,445 Operating accruals and other 46,741 49,513 Total accrued liabilities $ 168,187 $ 161,065

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables) - Foreign Exchange Contract	6 Months Ended
	Mar. 31, 2023
Schedule of notional amount held through foreign currency forwards, based upon exchange rates	At March 31, 2023, we held forwards, which expire ratably through September 30, 2023, with a notional amount, based upon exchange rates at March 31, 2023, as follows (in thousands): Notional Currency Notional Amount Mexican Peso $ 12,846 Euro 7,699 Canadian Dollar 6,284 Total $ 26,829
Non-Designated Derivative Instruments
Schedule of notional amount held through foreign currency forwards, based upon exchange rates	At March 31, 2023, we held forwards, which expire on various dates in the first month of both the third and fourth fiscal quarters of fiscal year 2023, with a notional amount, based upon exchange rates at March 31, 2023, as follows (in thousands): Notional Currency Notional Amount British Pound $ 51,936 Canadian Dollar 13,491 Euro 21,173 Mexican Peso 26,175 Total $ 112,775

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Schedule of segment data	Segment data for the three and six months ended March 31, 2023 and 2022, is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Net sales: Sally Beauty Supply ("SBS") $ 530,246 $ 525,785 $ 1,079,718 $ 1,087,315 Beauty Systems Group ("BSG") 388,466 385,602 796,049 804,323 Total $ 918,712 $ 911,387 $ 1,875,767 $ 1,891,638 Earnings before provision for income taxes: Segment operating earnings: SBS $ 92,134 $ 80,940 $ 191,308 $ 181,563 BSG 37,260 46,008 86,907 104,554 Segment operating earnings 129,394 126,948 278,215 286,117 Unallocated expenses 50,712 40,487 102,539 85,777 Restructuring 7,274 — 17,680 1,099 Consolidated operating earnings 71,408 86,461 157,996 199,241 Interest expense 16,685 19,896 34,608 40,137 Earnings before provision for income taxes $ 54,723 $ 66,565 $ 123,388 $ 159,104
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 within BSG to conform to current year presentation. Three Months Ended March 31, Six Months Ended March 31, SBS 2023 2022 2023 2022 Hair color 39.8 % 38.1 % 39.2 % 37.4 % Hair care 24.3 % 24.1 % 23.9 % 24.0 % Styling tools and supplies 17.9 % 19.2 % 18.7 % 19.7 % Nail 10.0 % 10.6 % 10.2 % 10.5 % Skin and cosmetics 7.5 % 7.4 % 7.4 % 7.7 % Other beauty items 0.5 % 0.6 % 0.6 % 0.7 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2023 2022 2023 2022 Hair care 42.0 % 43.1 % 42.8 % 43.3 % Hair color 40.6 % 39.5 % 39.4 % 38.9 % Styling tools and supplies 10.8 % 11.2 % 10.8 % 11.3 % Skin and cosmetics 3.7 % 3.5 % 4.1 % 3.9 % Nail 2.7 % 2.3 % 2.7 % 2.2 % Other beauty items 0.2 % 0.4 % 0.2 % 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 2023 2022 2023 2022 Company-operated stores 93.6 % 93.7 % 93.6 % 94.0 % E-commerce 6.4 % 6.3 % 6.4 % 6.0 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2023 2022 2023 2022 Company-operated stores 67.5 % 66.6 % 66.9 % 67.1 % E-commerce 13.7 % 12.4 % 13.7 % 12.0 % Distributor sales consultants 11.4 % 14.0 % 12.0 % 13.8 % Franchise stores 7.4 % 7.0 % 7.4 % 7.1 % Total 100.0 % 100.0 % 100.0 % 100.0 %

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Mar. 31, 2023
Restructuring And Related Activities [Abstract]
Summary of restructuring expense and gains	Restructuring expenses, included in Cost of Goods Sold (“COGS”) and Restructuring for the three and six months ended March 31, 2023 and 2022 are as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Included in COGS (a) Distribution Center Consolidation and Store Optimization Plan $ (2,362 ) $ — $ (5,042 ) $ — Included in Restructuring (b) Distribution Center Consolidation and Store Optimization Plan $ 7,274 $ — $ 17,680 $ — Transformation Plan — — — 1,099 Total in Restructuring 7,274 — 17,680 1,099 Total Restructuring Expenses $ 4,912 $ — $ 12,638 $ 1,099 (a) Amounts included within COGS are related to adjustments to our expected obsolescence reserve related to the Plan (as defined below). (b) Amounts included within Restructuring for the current year are related to stores and distribution centers closed during the period in accordance with the Plan (as defined below).
Schedule of restructuring	The liability related to the Plan, which is included in accounts payable and accrued liabilities on our consolidated balance sheets, is as follows: (in thousands) Liability at September 30, 2022 SBS Expense BSG Expense Cash Payments Non-Cash Amounts Liability at March 31, 2023 Closing costs - leases (a) $ — $ 7,389 $ 1,307 $ (5,463 ) $ (1,043 ) $ 2,190 Closing costs - payroll expenses (b) — 1,540 979 (2,458 ) — 61 Impairment - property and equipment (c) — 1,276 193 — (1,469 ) — Inventory transfer costs — 1,158 322 (1,372 ) — 108 Impairment - operating lease assets (c) — 350 244 — (594 ) — Other closure costs (d) 1,291 2,978 (56 ) (2,659 ) — 1,554 Total $ 1,291 $ 14,691 $ 2,989 $ (11,952 ) $ (3,106 ) $ 3,913 (a) Lease-related closing costs include contract terminations costs, repairs, maintenance, and other rental obligations associated with closing stores. (b) Payroll-related closing costs include one-time termination benefits related to the closure of our distribution centers as well as other payroll expenses associated with closing stores. (c) Remaining carrying value for the long-lived assets, including operating lease assets, were not material and approximate their fair value. (d) Other closure costs predominantly consist of exit costs associated with shutting down of operations at various locations.

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Changes to Contract Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Contract With Customer Liability [Abstract]
Beginning Balance	$ 13,460	$ 16,744
Loyalty points and gift cards issued but not redeemed, net of estimated breakage	9,327	6,214
Revenue recognized from beginning liability	(8,370)	(6,316)
Ending Balance	$ 14,417	$ 16,642

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Long-term debt, excluding capital leases
Long-term debt, excluding capital leases, Carrying Value	$ 1,079,961	$ 1,087,461
Long-term debt, excluding capital leases, Fair Value	1,066,562	1,037,494
Level 2 | Term Loan B Due 2024
Long-term debt, excluding capital leases
Long-term debt, excluding capital leases, Carrying Value		407,500
Long-term debt, excluding capital leases, Fair Value		398,331
Level 2 | Term Loan B Due 2030
Long-term debt, excluding capital leases
Long-term debt, excluding capital leases, Carrying Value	400,000
Long-term debt, excluding capital leases, Fair Value	398,500
Level 1 | Senior notes
Long-term debt, excluding capital leases
Long-term debt, excluding capital leases, Carrying Value	679,961	679,961
Long-term debt, excluding capital leases, Fair Value	668,062	639,163
Fair Value, Recurring
Financial Assets:
Total assets	327	4,154
Financial Liabilities:
Total liabilities	4,187	79
Fair Value, Recurring | Level 2 | Other current assets
Financial Assets:
Interest rate caps		3,860
Fair Value, Recurring | Level 2 | Other current assets | Non-Designated Derivative Instruments
Financial Assets:
Cash flow hedges	327	294
Fair Value, Recurring | Level 2 | Accrued Liabilities | Non-Designated Derivative Instruments
Financial Liabilities:
Cash flow hedges	1,887	$ 79
Fair Value, Recurring | Level 2 | Accrued Liabilities | Designated cash flow hedges
Financial Liabilities:
Cash flow hedges	$ 2,300

Stockholders' Equity - Share Re

Stockholders' Equity - Share Repurchase Program (Details) - 2017 Share Repurchase program - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Aug. 31, 2017
Share Repurchase Program
Amount of shares authorized to be repurchased		$ 595,800,000		$ 595,800,000		$ 1,000,000,000
Term of share repurchase program, extended	4 years
Stock repurchase program, expiration date	Sep. 30, 2025
Number of shares repurchased		0	3,100,000	0	6,800,000
Total cost of share repurchased			$ 55,000,000		$ 130,300,000

Stockholders' Equity - Change i

Stockholders' Equity - Change in AOCL (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2023 USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	$ 293,636
Balance	425,888
Interest rate caps
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	1,960
Other comprehensive loss before reclassification, net of tax	817
Reclassification to net earnings, net of tax	(2,777)
Foreign exchange contracts
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(679)
Other comprehensive loss before reclassification, net of tax	(1,815)
Reclassification to net earnings, net of tax	(112)
Balance	(2,606)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(153,128)
Other comprehensive loss before reclassification, net of tax	35,386
Balance	(117,742)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(151,847)
Other comprehensive loss before reclassification, net of tax	34,388
Reclassification to net earnings, net of tax	(2,889)
Balance	$ (120,348)

Weighted-Average Shares (Detail

Weighted-Average Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share Reconciliation:
Weighted-average basic shares	107,453	108,743	107,294	110,387
Dilutive securities:
Stock option and stock award programs	2,253	1,797	2,205	1,820
Weighted-average diluted shares	109,706	110,540	109,499	112,207
Anti-dilutive options excluded from our computation of diluted shares	1,964	2,534	1,964	2,169

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2023
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment losses in connection with the goodwill	$ 0
Impairment losses in connection with the intangible assets	$ 0
Goodwill, decreased from effects of foreign currency exchange rates		$ 8,200,000
Intangible assets, decreased from effects of foreign currency exchange rates		$ 2,100,000

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, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense	$ 866	$ 999	$ 1,875	$ 2,070

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Accrued Liabilities
Compensation and benefits	$ 66,868	$ 58,693
Deferred revenue	18,980	18,810
Rental obligations	12,766	10,701
Insurance reserves	6,111	5,742
Property and other taxes	3,022	4,161
Interest payable	13,699	13,445
Operating accruals and other	46,741	49,513
Total accrued liabilities	$ 168,187	$ 161,065

Short-term Borrowings and Lon_2

Short-term Borrowings and Long-term Debt - Additional Information (Details) - USD ($)		6 Months Ended
	Feb. 28, 2023	Mar. 31, 2023
Debt Instrument [Line Items]
Debt instruments issuance cost		$ 4,726,000
Extinguishment of debt		(601,000)
Sally Holdings LLC and Sally Capital Inc. | TLB 2030
Debt Instrument [Line Items]
Aggregate principal amount	$ 400,000,000
Debt instrument maturity terms	The TLB 2030 matures on the earlier of (i) February 28, 2030 and (ii) the date that is 91 days prior to the stated maturity of the Borrowers’ 2025 Senior Unsecured Notes
Percentage of principal repayable in quarterly installments equal to a percentage of original principal amount to outstanding principal amount due on maturity date	0.25%
Interest rate discount	0.75%
Debt instruments issuance cost	$ 4,700,000
Prepayment premium percentage	1%
Debt instrument payment terms	repayable in quarterly installments equal to 0.25% of the original principal amount of the TLB 2030, with a final installment equal to the entire remaining outstanding principal amount due on the Maturity Date
Sally Holdings LLC and Sally Capital Inc. | 2025 Senior Unsecured Notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 200,000,000
Sally Holdings LLC and Sally Capital Inc. | TLB 2024
Debt Instrument [Line Items]
Aggregate principal amount	$ 406,100,000
Date of indenture	Feb. 28, 2017
Extinguishment of debt	$ 600,000
Unamortized discount	200,000
Deferred financing costs	$ 400,000
SOFR | Sally Holdings LLC and Sally Capital Inc. | TLB 2030
Debt Instrument [Line Items]
Interest rate	2.50%
Base Rate | Sally Holdings LLC and Sally Capital Inc. | TLB 2030
Debt Instrument [Line Items]
Interest rate	1.50%
ABL facility
Debt Instrument [Line Items]
Outstanding borrowing		34,000,000
Revolving credit facility		$ 448,700,000

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - (Details)	3 Months Ended		6 Months Ended
	Mar. 31, 2023 USD ($) instrument	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) instrument	Mar. 31, 2022 USD ($)	Jul. 31, 2017 USD ($) derivative
Derivative Instruments
Number of derivative instruments held | instrument	0		0
Interest expense	$ 16,685,000	$ 19,896,000	$ 34,608,000	$ 40,137,000
Foreign Currency Forwards
Derivative Instruments
Derivative instruments, expiration date			Sep. 30, 2023
Foreign Currency Forwards | Selling, General and Administrative Expenses
Derivative Instruments
Foreign currency forwards designated as cash flow hedges to be reclassified gain (loss)	(1,500,000)	(200,000)	$ (1,100,000)	100,000
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)	(200,000)	$ (100,000)	100,000	(400,000)
Foreign currency forwards designated as cash flow hedges to be reclassified losses into cost of goods sold over next 12 months	(3,100,000)		$ (3,100,000)
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
Cash received in connection with early settlement of interest rate caps	2,700,000
Interest income	$ 2,800,000		$ 2,800,000
Interest expense				$ 400,000

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, 2023 USD ($)
Foreign Currency Forwards | Designated cash flow hedges
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 26,829
Foreign Currency Forwards | Non-Designated Derivative Instruments
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	112,775
Mexican Peso | Designated cash flow hedges
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	12,846
Mexican Peso | Non-Designated Derivative Instruments
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	26,175
Euro | Designated cash flow hedges
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	7,699
Euro | Non-Designated Derivative Instruments
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	21,173
Canadian Dollar | Designated cash flow hedges
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	6,284
Canadian Dollar | Non-Designated Derivative Instruments
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	13,491
British Pound | Non-Designated Derivative Instruments
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 51,936

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Net sales:
Total net sales	$ 918,712	$ 911,387	$ 1,875,767	$ 1,891,638
Segment operating earnings:
Segment operating earnings	71,408	86,461	157,996	199,241
Restructuring	7,274		17,680	1,099
Interest expense	16,685	19,896	34,608	40,137
Earnings before provision for income taxes	54,723	66,565	123,388	159,104
Operating segments
Segment operating earnings:
Segment operating earnings	129,394	126,948	278,215	286,117
Corporate
Segment operating earnings:
Unallocated expenses	50,712	40,487	102,539	85,777
Sally Beauty Supply
Net sales:
Total net sales	530,246	525,785	1,079,718	1,087,315
Segment operating earnings:
Restructuring			14,691
Sally Beauty Supply | Operating segments
Segment operating earnings:
Segment operating earnings	92,134	80,940	191,308	181,563
Beauty Systems Group
Net sales:
Total net sales	388,466	385,602	796,049	804,323
Segment operating earnings:
Restructuring			2,989
Beauty Systems Group | Operating segments
Segment operating earnings:
Segment operating earnings	$ 37,260	$ 46,008	$ 86,907	$ 104,554

Segment Reporting - Schedule of

Segment Reporting - Schedule of Disaggregation of Net Sales by Segment (Details) - Sales Revenue, Net - Product Concentration Risk	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Sally Beauty Supply
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100%	100%	100%	100%
Sally Beauty Supply | Hair color
Disaggregation Of Revenue [Line Items]
Percentage of net sales	39.80%	38.10%	39.20%	37.40%
Sally Beauty Supply | Hair care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	24.30%	24.10%	23.90%	24%
Sally Beauty Supply | Styling tools and supplies
Disaggregation Of Revenue [Line Items]
Percentage of net sales	17.90%	19.20%	18.70%	19.70%
Sally Beauty Supply | Nail
Disaggregation Of Revenue [Line Items]
Percentage of net sales	10%	10.60%	10.20%	10.50%
Sally Beauty Supply | Skin and cosmetics
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.50%	7.40%	7.40%	7.70%
Sally Beauty Supply | Other Beauty items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	0.50%	0.60%	0.60%	0.70%
Sally Beauty Supply | Sales channel, directly to consumer | Company-operated stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	93.60%	93.70%	93.60%	94%
Sally Beauty Supply | Sales channel, through intermediary | E-commerce
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.40%	6.30%	6.40%	6%
Beauty Systems Group
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100%	100%	100%	100%
Beauty Systems Group | Hair color
Disaggregation Of Revenue [Line Items]
Percentage of net sales	40.60%	39.50%	39.40%	38.90%
Beauty Systems Group | Hair care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	42%	43.10%	42.80%	43.30%
Beauty Systems Group | Styling tools and supplies
Disaggregation Of Revenue [Line Items]
Percentage of net sales	10.80%	11.20%	10.80%	11.30%
Beauty Systems Group | Nail
Disaggregation Of Revenue [Line Items]
Percentage of net sales	2.70%	2.30%	2.70%	2.20%
Beauty Systems Group | Skin and cosmetics
Disaggregation Of Revenue [Line Items]
Percentage of net sales	3.70%	3.50%	4.10%	3.90%
Beauty Systems Group | Other Beauty items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	0.20%	0.40%	0.20%	0.40%
Beauty Systems Group | Sales channel, directly to consumer | Company-operated stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	67.50%	66.60%	66.90%	67.10%
Beauty Systems Group | Sales channel, through intermediary | Distributor sales consultants
Disaggregation Of Revenue [Line Items]
Percentage of net sales	11.40%	14%	12%	13.80%
Beauty Systems Group | Sales channel, through intermediary | E-commerce
Disaggregation Of Revenue [Line Items]
Percentage of net sales	13.70%	12.40%	13.70%	12%
Beauty Systems Group | Sales channel, through intermediary | Franchise stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.40%	7%	7.40%	7.10%

Restructuring - Summary of Rest

Restructuring - Summary of Restructuring Expense and Gains (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2023	Mar. 31, 2022
Restructuring Cost And Reserve [Line Items]
Total in Restructuring	$ 7,274	$ 17,680	$ 1,099
Total Restructuring Expenses	4,912	12,638	1,099
Distribution Center Consolidation and Store Optimization Plan
Restructuring Cost And Reserve [Line Items]
Total in COGS	(2,362)	(5,042)
Total in Restructuring	$ 7,274	$ 17,680
Transformation Plan
Restructuring Cost And Reserve [Line Items]
Total in Restructuring			$ 1,099

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2023	Mar. 31, 2022
Distribution Center Consolidation and Store Optimization Plan
Restructuring reserve, beginning balance		$ 1,291
Restructuring charges	$ 7,274	17,680	$ 1,099
Cash Payments		(11,952)
Non-Cash Amounts		(3,106)
Restructuring reserve, ending balance	3,913	3,913
Sally Beauty Supply
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		14,691
Beauty Systems Group
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		2,989
Closing Costs - Leases
Distribution Center Consolidation and Store Optimization Plan
Cash Payments		(5,463)
Non-Cash Amounts		(1,043)
Restructuring reserve, ending balance	2,190	2,190
Closing Costs - Leases | Sally Beauty Supply
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		7,389
Closing Costs - Leases | Beauty Systems Group
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		1,307
Closing Costs - Payroll Expenses
Distribution Center Consolidation and Store Optimization Plan
Cash Payments		(2,458)
Restructuring reserve, ending balance	61	61
Closing Costs - Payroll Expenses | Sally Beauty Supply
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		1,540
Closing Costs - Payroll Expenses | Beauty Systems Group
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		979
Impairment - Property and Equipment
Distribution Center Consolidation and Store Optimization Plan
Non-Cash Amounts		(1,469)
Impairment - Property and Equipment | Sally Beauty Supply
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		1,276
Impairment - Property and Equipment | Beauty Systems Group
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		193
Inventory Transfer Costs
Distribution Center Consolidation and Store Optimization Plan
Cash Payments		(1,372)
Restructuring reserve, ending balance	108	108
Inventory Transfer Costs | Sally Beauty Supply
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		1,158
Inventory Transfer Costs | Beauty Systems Group
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		322
Impairment Operating Lease Assets
Distribution Center Consolidation and Store Optimization Plan
Non-Cash Amounts		(594)
Impairment Operating Lease Assets | Sally Beauty Supply
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		350
Impairment Operating Lease Assets | Beauty Systems Group
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		244
Other Closure Costs
Distribution Center Consolidation and Store Optimization Plan
Restructuring reserve, beginning balance		1,291
Cash Payments		(2,659)
Restructuring reserve, ending balance	$ 1,554	1,554
Other Closure Costs | Sally Beauty Supply
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		2,978
Other Closure Costs | Beauty Systems Group
Distribution Center Consolidation and Store Optimization Plan
Restructuring charges		$ (56)

Subsequent Event - Additional I

Subsequent Event - Additional Information (Details) - Interest Rate Swap - USD ($)	1 Months Ended	6 Months Ended
	Apr. 30, 2023	Mar. 31, 2023
Subsequent Event [Line Items]
Description of interest rate		Under the terms of the swap, we will pay a fixed rate of interest of 3.705% and will receive a floating rate of interest equal to one-month SOFR. The floating rate will be reset monthly and net settlements of interest due to/from the counterparty will also occur monthly. To the extent the floating rate of interest exceeds the fixed rate of interest, we will receive net interest settlements, which will be recorded as a reduction to interest expense. If the fixed rate of interest exceeds the floating rate of interest, we will be required to pay net settlements to the counterparty and will record those net payments in interest expense
Subsequent Event
Subsequent Event [Line Items]
Notional amount	$ 200,000,000
Interest rate swap transaction effective date	Apr. 28, 2023
Interest rate swap transaction termination date	Apr. 30, 2026
Fixed interest rate	3.705%