After a successful pilot, Sally Beauty plans to expand its refreshed store model — dubbed Sally Ignited — to 100 locations in fiscal year 2027. That will consist of new stores and remodels mostly in the second half of the year, CEO Denise Paulonis said on an earnings call Tuesday.
The store model was announced in fiscal year 2025 as part of a broader brand refresh, with renovated locations focused on improving the customer shopping experience and driving more cross-category purchases with a revamped layout.
“We're excited to take this from pilot to scale as we accelerate towards 180 stores by year-end and build the customer experience of the future,” Paulonis said on the call. “Assuming this momentum continues, we will be well positioned to scale Ignited beyond fiscal 2027 in the range of 200 locations annually. Longer term, we continue to believe there's the opportunity to convert up to 1,500 locations or two-thirds of the Sally U.S. fleet.”
In the latest fiscal year, the beauty supply retailer expanded the Sally Ignited initiative store count from 30 to 80 locations.
Sally Beauty’s Q4 consolidated net sales increased 0.6% year over year to $953 million, per a press release. Consolidated comparable sales jumped 0.9% and global e-commerce grew 8%. The company’s full year 2026 consolidated net sales increased 0.9% to $3.73 billion.
In addition to Sally Beauty stores, the company also operates the Beauty Systems Group which is focused on selling to licensed salon professionals.
“When we think about the business for '27, we're excited about both sides of the business and how they're going to perform,” the chief executive told analysts. “We do expect throughout the full year, Sally will likely grow a bit faster than BSG will grow. But we do expect BSG to return to growth this year.”
