Deployment record
In the tracker →- Organisation
- Sally Beauty
- System
- AI-assisted shopping agent
- Stage
- Announced
- Function
- customer engagement
- 01Sally Beauty plans to launch an AI-assisted shopping agent and a hair color virtual try-on feature in fiscal 2027.
- 02E-commerce sales for Sally Beauty grew 18% in fiscal 2026, contributing to a total of $3.73 billion in net sales for the year.
- 03The company aims to enhance customer engagement and personalization through AI across its operations, including the Beauty Systems Group.
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- 04Sally Beauty is set to open approximately 100 new locations in fiscal 2027, part of a strategy to expand its physical footprint.
- 05In Q4 fiscal 2026, Sally Beauty reported net sales of $953 million, with a gross margin of 51.9% and adjusted diluted EPS of $0.62.
Sally Beauty
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Sally Beauty is preparing to bring AI into how customers shop for hair color and beauty products.
On the company's Q4 fiscal 2026 earnings call on November 10, 2026, President and CEO Denise Paulonis said the company's plans for its Sally segment in fiscal 2027 include "the launch of an AI-assisted shopping agent and marketplace expansion."
The company also plans to introduce a new hair color virtual try-on feature for shoppers buying hair color.
More broadly, Paulonis said Sally Beauty plans to "increasingly embed AI across our operations and customer engagement" to build capabilities and efficiency. She did not give a specific launch date within the fiscal year, or investment figures for the AI initiatives.
AI Search for Professionals
The AI work extends to Beauty Systems Group (BSG), the company's business serving professional stylists and salons. Paulonis said BSG is "adding AI-assisted search capabilities, the same as we are doing for Sally."
BSG is also following the Sally segment's approach to customer data. Paulonis said the company will leverage "our successful Sally playbook to unlock customer data and analytics to drive increased personalization" at BSG.
As part of that effort, the company is using its research on professional customers to create personas for different types of stylists, so it can tailor how it communicates with each.
It also plans to develop an exclusive digital ecosystem to expand BSG's relationship with stylists, including a hub for education and services.
BSG has already introduced a new app. "Our new app drove strong engagement and increased conversion," Paulonis said.
The week's store, brand and commerce deployments. Fridays.
The Digital Foundation
The AI plans follow a year of digital investment across both of the company's segments. Paulonis said the company "strengthened our digital capabilities through personalization, modernized apps, the launch of social commerce" during fiscal 2026.
Total e-commerce sales grew 10% for the year, and Sally segment e-commerce sales grew 18%. Paulonis said Sally US and Canada added 4% more new customers in fiscal 2026, which she credited to "the continued advancement of our marketing and customer analytics capabilities."
In the fourth quarter, global e-commerce sales rose 8% year over year, the 12th consecutive quarter of growth, CFO Adrianne Lee said. Sally segment e-commerce sales rose 13% in the quarter, including 19% in the US and Canada, and represented 10% of segment net sales.
BSG e-commerce sales increased 3% to $59 million in the quarter, accounting for 15% of the segment's sales. Paulonis said a majority of the company's digital orders are fulfilled through its stores.
The company is also extending its online channels. Paulonis said Sally Beauty is rolling out store marketplaces to Canada, and has launched e-commerce for its Happy Beauty concept as a tab on the Sally website.
Stores and Strategy
Sally Beauty is also expanding its physical footprint. The company plans to open approximately 100 new Sally Ignited locations in fiscal 2027, accelerating toward 180 stores by year-end.
Paulonis said the company's four strategic growth drivers continue to shape its path forward and support its three-year financial algorithm. Sally Beauty recently completed its three-year Fuel for Growth program.
The Quarter
Sally Beauty reported Q4 fiscal 2026 net sales of $953 million, with comparable sales up 1%. Gross margin was 51.9%, and adjusted diluted EPS rose 13% to $0.62.
For the full fiscal year, net sales were $3.73 billion, adjusted diluted EPS rose 9.5% to $2.08, and free cash flow was $210 million.
For fiscal 2027, the company expects consolidated net sales of $3.77 billion to $3.81 billion, comparable sales growth of 1% to 2%, and adjusted diluted EPS of $2.20 to $2.30.
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