Sally Beauty Holdings, Inc. SBH continues to expand its digital business in the third quarter of fiscal 2026, with global e-commerce sales increasing 11% year over year. The company has now recorded four consecutive quarters of double-digit e-commerce growth, demonstrating sustained growth in its online sales. Management attributed the performance to continued strength in Sally's online marketplaces and the rollout of updated apps for both business segments earlier in the year.
Sally Beauty's e-commerce business delivered particularly strong results, with sales rising 20% to $52 million, equivalent to 10% of the segment's net sales for the quarter. In the United States and Canada, e-commerce sales increased 28%. The Sally app recorded strong customer engagement and higher conversion, as orders and sales grew faster than sessions. Average order value rose 6% during the quarter. Buy online, pick up in store (BOPIS) accounted for the majority of app order volume, and management identified it as the company's most efficient delivery channel.
Digital improvements are also supporting customer engagement at Beauty Systems Group. E-commerce sales in the segment increased 4% to $58 million, representing 15% of segment net sales. Updated features, including faster checkout, simplified reordering, nearby inventory searches and Apple Pay, provided an improved customer experience.
Customer acquisition initiatives are another part of Sally Beauty's broader growth strategy. Its Licensed Colorist On Demand service averaged more than 5,200 consultations per week during the quarter, while the number of new customers increased 28% year over year. Customers using the service continued to spend more than non-LCOD customers, primarily because of their higher purchase frequency. Management said that the service helps attract new customers and increase engagement by providing digital access to color and care advice.
Looking ahead, the sustainability of e-commerce growth will be an important factor in determining how Sally Beauty's digital business develops. The earnings call did not specify a target for e-commerce as a percentage of future sales. App engagement, conversion and omnichannel fulfillment were key elements of management's digital update, alongside customer acquisition initiatives such as Licensed Colorist On Demand. The extent to which digital sales become a larger share of total revenue will depend on how these trends develop in subsequent quarters.
How ULTA and EL Are Driving Digital Growth
Similar companies such as Ulta Beauty and Estée Lauder are also using digital channels to drive sales and strengthen customer engagement, highlighting the broader retail trend toward omnichannel growth that supports Sally Beauty Holdings’ efforts to expand its e-commerce business.
Ulta Beauty, Inc. ULTA is a beauty retailer whose digital initiatives complement its store-based operations. The company is strengthening its digital business through personalized shopping experiences, AI-powered discovery tools and enhanced omnichannel capabilities. Its mobile app and store-based fulfillment network are helping create a more convenient shopping experience.
Ulta Beauty is also expanding its online assortment through Ulta Beauty Marketplace, while social commerce initiatives, including TikTok Shop, support digital engagement. Its omnichannel strategy enables customers to shop across digital and physical channels, with stores fulfilling more than half of e-commerce orders during the quarter. In the second quarter of fiscal 2026, total net sales increased 8.9% to approximately $3 billion, with e-commerce sales growing in the high teens.
The Estée Lauder Companies EL is strengthening its digital approach through e-commerce expansion, social commerce and technology-driven consumer engagement. In fiscal 2025, online sales accounted for 31% of reported sales, up three percentage points from fiscal 2024. EL expanded its presence on Amazon and TikTok Shop while strengthening its reach across other digital platforms, including Shopee, Tmall and Douyin.
The company is also leveraging AI capabilities to enhance personalized marketing, optimize media spending and improve consumer engagement. These initiatives contributed to a broader digital strategy focused on expanding consumer reach and improving marketing effectiveness.
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