SBH's E-Commerce Sales Hit 11% of Net Sales: Can it Keep Rising?

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a day ago

Sally Beauty Holdings, Inc.'s (SBH) digital channel continues to solidify its role as a key revenue driver. In the third quarter of fiscal 2025, global e-commerce sales reached $99 million, representing 10.6% of net sales, up from 9.7% reported in the prior-year levels and showing solid momentum despite overall sales dipping 1%.
Segment trends highlight the shift. Sally Beauty Supply generated $43 million in e-commerce sales, or 8.2% of segment revenues, while Beauty Systems Group posted $56 million, representing 13.7%. The expansion indicates both higher marketplace activity, on platforms like Amazon, Walmart and Uber Eats, and the company's direct site traffic.
Growth is being fueled by strategic digital initiatives such as marketplace integration, expanded fulfillment capabilities and the Licensed Colorist OnDemand service, which encourages online engagement and boosts basket size. Sally Beauty has also leaned on targeted promotions and product innovation to bring first-time customers into its e-commerce ecosystem.
Yet, sustaining momentum would not be without challenges. Consumers remain value-focused, with selective trade-down in certain categories. Still, the combination of marketplace expansion, targeted marketing and personalized experiences positions e-commerce to capture a growing share of total sales.
With continued investment in customer engagement and operational efficiency, Sally Beauty's digital channel appears well-placed to drive incremental growth in traffic, conversion and market share. Strategic investment in customer engagement and operational efficiency should support growth in digital traffic and conversion rates.
How SBH's E-Commerce Growth Compares With ULTA, EL & COTY
Ulta Beauty, Inc. (ULTA) continues to enhance its digital capabilities, with e-commerce sales climbing about 10% in the first quarter of fiscal 2025. The retailer's focus on personalization, real-time content delivery and new features like 'Shop My Store' has strengthened online engagement and conversion. Ulta Beauty's integration of major promotional events, such as 21 Days of Beauty, across both physical and digital channels demonstrates its strength in merging experiential retail with e-commerce. These efforts, alongside marketplace expansion planned for later this year, are expected to further lift Ulta Beauty's online sales share.
The Estée Lauder Companies Inc. (EL) is deepening its online presence through brand-owned sites and third-party platforms, including Amazon Premium Beauty, TikTok Shop and Shopee. In the third quarter of fiscal 2025, Estée Lauder achieved organic online sales growth, fueled by product innovation and targeted digital marketing. Estée Lauder's investment in influencer-driven campaigns and region-specific digital activations reinforces its strategy to capture a greater share of e-commerce in key global markets.
Coty Inc. (COTY) is leveraging digital channels to drive brand visibility and sales, particularly in mass fragrances and select prestige categories. Online activations on Amazon and TikTok Shop, coupled with targeted promotions and digital-first product launches, are helping Coty expand its e-commerce footprint. The company's focus on innovation and marketing efficiency aids in further growing its share of online beauty sales in the coming years.
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