Sally Beauty Holdings, Inc.

Our Company

Sally Beauty Holdings, Inc. is a leading international specialty retailer and distributor of professional beauty supplies. As experts in hair color and care, we aim to empower our customers to express themselves through their hair and beyond. We operate two business segments that offer beauty products in key categories, including hair care, hair color, styling tools, and nails.

Sally Beauty (“Sally”) – An omni-channel retailer that offers professional-quality beauty supplies at attractive prices and provides education to retail consumers and salon professionals throughout North America, South America, and Europe. Sally operates primarily through retail stores (generally operating under the Sally Beauty banner) and digital platforms, including ourwww.sallybeauty.com website, a mobile commerce-based app, and third-party digital marketplaces.

Beauty Systems Group (“BSG”) – A leading full-service omni-channel distributor that offers professional beauty supplies exclusively to salons and licensed beauty professionals throughout the U.S., including Puerto Rico, and Canada. These salon professionals primarily rely on just-in-time inventory due to capital constraints and limited warehouse and shelf space. BSG operates through company-operated stores (generally operating under the Cosmo Prof banner), franchised stores, salon business consultants (“SBCs”), and digital platforms, including ourwww.cosmoprofbeauty.com website, a mobile commerce-based app, and chain portals.

The breadth, depth, and professional quality of our hair color, hair care, and nail assortment provide us with a differentiated core business in an industry which is otherwise fragmented. Due to our long history, brand heritage, product and process-specific knowledge, and training of associates, we provide unmatched hair color, hair care, and nail expertise to consumers. We also have strong positioning with suppliers given our focus and economies of scale of purchasing. By operating in a variety of channels, we are able to reach broad, diversified geographies, and customer segments using a variety of product assortments and tactics.

Operating and Growth Strategy

Our operating and growth strategy is guided by our vision to strengthen our position in our core category of professional hair color and capture growth opportunities across adjacent categories such as care, nails, and styling tools for both do-it-yourself (“DIY”) customers and professional stylists. Sally’s differentiation is to offer a vast array of hair color, hair care, and nail solutions for in-home use, supported by the content and education we provide our customers. Expanded assortment in fragrance, cosmetics, and skin care is giving customers more reasons to shop and discover new products. At BSG, we are one of the largest distributors of professional hair color and care products in North America, with an extensive portfolio of third-party brands servicing stylists and salons.

As we continue to build on our momentum, we are sharpening our focus to further elevate differentiation and enhancing our strategic initiatives to support this, while continuing to drive profitable growth.

Understand and Activate the Customer

As part of our strategic focus on deepening our relationships with our current customer base and expanding into new consumer markets, we are placing greater emphasis on personalization and bespoke customer journeys. Our DIY customers and professional stylists value the services, education, and innovation we provide. We are focused on expanding our personalization experiences across all customer touchpoints, deepening our customer insights to drive the richness of the personalization decisioning and targeting, and strengthening our omni-channel communication and customer connections.

We continue to build customer loyalty and appeal to new customers through our value-added services and concepts, including Licensed Colorist on Demand (“LCOD”) and Happy Beauty Co. Additionally, we are using technology to drive growth through personalization and refining our performance marketing tactics to ensure we remain in lockstep with evolving customer needs. Our current marketing strategy utilizes a variety of media channels to connect directly with customers, including e-mail, text messages, mobile app notifications, and digital and physical advertising, as well as content creators that educate and empower customers to feel confident about DIY hair and nail care.

We are focused on elevating our marketing partnerships with brands to enhance reach, relevance, and mutual value creation. Our marketing programs highlight brand partners’ products and competitive promotional offers to excite and empower existing and new customers. As part of our marketing transformation, we are advancing artificial intelligence enablement to support more relevant customer experiences, accelerate content development, and improve operational efficiency. We are also applying advanced media mix modeling to better understand the incremental impact of our

• 1 - marketing investments, inform spending across channels, and optimize marketing effectiveness. Together with the continued refinement of our brand messaging, these capabilities are designed to strengthen data-driven decision-making, improve returns on marketing investment, and support our strategic growth objectives.

Unlock and Harvest Digital Value

We plan to continue leveraging and enhancing our omni-channel business model that allows customers to shop in store, online, or through a hybrid approach such as our “buy online, pick up in store” (“BOPIS”) or 2-hour delivery options. In fiscal 2027, we plan to enhance the digital shopping experience through AI-enabled product search capabilities and continued improvements to our mobile applications, with a focus on simplifying product discovery, increasing customer engagement, and delivering more personalized experiences. Our online retail presence has grown to include digital marketplaces such as Amazon, DoorDash, Uber Eats, Shipt, Instacart, and TikTok, and continues to benefit from the existing Sally Beauty app on iOS and Android.

For BSG, we launched an update to the BSG app and e-commerce platform during fiscal year 2026 that is designed to deliver an improved user experience, enhanced personalization and modernized payment options. We believe this will fuel long-term benefits, including higher conversion, increased retention and engagement, and enhanced brand loyalty.

Additionally, we are further driving professional customer engagement via expansion of Cosmo Prof Institute and affiliate partnerships. Cosmo Prof Institute is our online education platform that gives stylists the opportunity to attend professional master classes while earning continuing education credits. Our internal Sally Beauty Associate Affiliate Program empowers our associates to share their unique expertise with customers on social media, fostering a community of inspiring, diverse creators who are using Sally merchandise for their DIY beauty, hair, nails, and self-expression.

Differentiate with Product Assortment and Innovation

At Sally, we believe our continued investment in owned brand growth and innovation will help us attract new customers and strengthen loyalty. Our owned brands are a key differentiator relative to competitors, and we continued expanding our owned brand portfolio during the fiscal year. In addition, we brought to market many innovative products, including the Ion 24k hair care collection and Infrared styling tools. In fiscal 2027, we plan to refresh our largest owned brand, Ion, with updated packaging and marketing across the collection. Alongside our owned brands, we continue to expand our assortment of national brands and introduce new products across hair care, textured hair care, cosmetics, and fragrance, giving new and existing customers more reasons to shop.

At BSG, we continued to expand our professional beauty portfolio during fiscal 2026, introducing new brands such as Milkshake and Keratin Complex, as well as The Gel Bottle and Donna Bella Hair Extensions. We also expanded the distribution of existing brand partners, including K18, Unite, Verb, Moroccan Oil, AG Hair, Image, and Matter of Fact, across additional locations. In fiscal 2027, we plan to continue expanding our distribution footprint, strengthening our portfolio of leading professional brands, and introducing new products across our core hair color and hair care categories.

New Growth Pathways

In 2025, we launched Sally Ignited, a comprehensive initiative encompassing both physical and digital refreshes, category and brand expansion, and immersive experiences focused on discovery and community. As part of the Sally Ignited program, we are transitioning Sally Beauty from a “beauty supply house” to a modernized specialty beauty retailer. At the end of the fiscal year, 80 stores in various markets throughout the U.S. have been refreshed or opened, and we plan to expand Sally Ignited to 100 additional stores during fiscal year 2027. In these locations, we are prioritizing the customer journey and operational execution to deliver a superior in-store experience–one that encourages discovery, inspires and engages. We are seeing an improved customer experience in the newly renovated stores as customers are spending more time in-store and cross-shopping categories at an increased rate, as evidenced by basket growth coming from nails, cosmetics, and skin care. As we expand Sally Ignited, we expect to continue testing and refining elements of the store model and apply successful concepts to the broader Sally Beauty store fleet where appropriate. Along with our Happy Beauty Co. stores, we have opened shop-in-shop locations in some of our newly renovated Sally Beauty stores, allowing us to reach new customers as we build brand awareness. Additionally, we are seeing positive performance indicators, including units per transaction and average ticket value, at levels above the broader store fleet. We believe these results reflect the impact of our updated store design, marketing, and merchandising strategies.

Efficiency and Optimization

Our Fuel for Growth (“FFG”) program has contributed to improved profitability and operating efficiencies, achieving its targeted annualized run-rate savings in fiscal 2026. These savings have been realized across gross margin and selling, general and administrative expenses through initiatives designed to streamline operations, reduce costs and modernize key business processes.

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Key initiatives included transitioning to pooled distribution, optimizing store shipping frequencies, implementing unassisted delivery to allow deliveries outside of store operating hours, renegotiating vendor pricing, improving sourcing and supply chain processes, and reducing non-trade spending. These efforts have generated meaningful transportation and operating cost savings while strengthening our overall cost structure.

Although the FFG program is largely complete, we remain focused on sustaining these efficiencies and identifying additional opportunities for improvement. The capabilities and processes established through the program provide a foundation to support future growth and continued operational improvement.

Store Design and Locations

Sally has retail stores in the U.S. (including Puerto Rico), Canada, Mexico, the United Kingdom (“UK”), Ireland, Belgium, France, Germany, the Netherlands, and Chile. Stores are designed to highlight our extensive product offerings and differentiated position in hair color, hair care, styling tools, and nails. We apply strong category management processes, including store specific planograms, to maintain consistent merchandise presentation across our store base. In the U.S. and Canada, our stores offer an average of 6,500 beauty products and average approximately 1,700 square feet in size. Stores are typically located in strip shopping centers, which are occupied by other high-traffic retailers such as grocery stores, mass merchants, and home improvement centers. Store formats, including average size and product selection, vary by marketplace to meet the needs of the local customer. As part of our strategic initiatives, we launched Sally Ignited, an initiative that includes a refresh of our store base to provide a better customer shopping experience.

We evaluate store renewals, remodels, and expansion opportunities across new and existing geographies. In existing marketplaces, we add stores to provide additional coverage and strategically close or relocate underperforming stores as necessary. In new marketplaces, Sally selects geographic areas and store sites on the basis of demographic information, the quality and nature of neighboring tenants, store visibility and location accessibility. Sally generally seeks to expand in geographically contiguous areas to leverage its expertise and brand recognition.

Our Happy Beauty Co. stores feature “Indie Beauty” third-party brands and our owned brands encompassing five key categories: cosmetics, skin care, bath and body, nails, and fragrance. The initial pilot stores were opened in the Dallas/Fort Worth, Texas and Phoenix, Arizona markets. At the end of fiscal year 2026, we launched our Happy Beauty Co. e-commerce site. Ahead of the holiday season, we plan to open ten additional mall locations in new U.S. markets. We continue to evaluate and refine this new concept, positioning Happy Beauty Co. as an “Indie Brand Headquarters,” with an emphasis on emerging trends, including Korean beauty and fragrance. Additionally, our marketing strategy emphasizes emerging brands, opportunities for customers to try products before purchasing, and influencer partnerships and social media to drive customer engagement and sales.

Sally’s store count for the past three fiscal years is summarized in the following table:

(1)Includes 11, 20, and 12 Happy Beauty Co. stores for 2026, 2025, and 2024, respectively.

BSG stores, including franchise-based Armstrong McCall stores, are designed to highlight our extensive product offerings to salons and salon professionals. Our stores, on average, offer approximately 8,500 professional beauty products tailored to the territory and are segmented into distinctive areas arranged by product type, with certain areas dedicated to leading third-party brands. Our company-operated stores average approximately 2,700 square feet, are located primarily in secondary strip shopping centers, and exclusively serve licensed beauty professionals.

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BSG’s store count for the past three fiscal years is summarized in the following table:

Merchandise

We believe our product offerings, led by our hair color and hair care categories, provide us a competitive advantage. During the past three fiscal years, our hair color and care products accounted for more than 70% of our total consolidated sales. Key products included within our sales categories are as follows:

•Hair Color– Developer/lightener, semi-permanent/demi-permanent/permanent hair color, and toner

•Hair Care – Shampoo and conditioner, hair gels, creams, oils, serums, and other styling products

•Styling Tools – Hair dryers, irons, curling rods/rollers/pins, brushes/combs, clippers/trimmers/accessories, shears, razors, and salon accessories, including chargers for tools and appliances

•Nails – Polish, gel acrylics, dips, artificial nails, nail accessories, supplies, and tools

•Skin and Cosmetics – Cosmetics, cosmetic accessories, lashes and accessories, hair removal, skincare, jewelry, and fragrances

•Other Beauty Products – Salon chairs, dryers, shampoo bowls, and basics

Additionally, as a top destination to shop for professional color and care, our goal is to be in-stock in these core categories at every opportunity.

Sally carries an extensive selection of leading third-party, owned and exclusive-labeled brand professional beauty products across a variety of categories. As leaders in the beauty industry, we believe we are uniquely positioned to adapt and innovate within our brands, partnerships, and product offerings to provide the looks customers want. We believe this focus helps us attract new customers and keep long-term relationships with existing customers. During the fiscal year, we continued to focus on owned brands, driving growth in our top brands: Ion, Salon Care, Beauty Secrets, Bondbar, and Inspired by Nature. We continue to expand our hair care assortment, including color-safe care, professional-quality products, textured hair solutions, men’s grooming products, and mindful beauty brands such as Sauce Beauty and Soapbox. Lastly, we remain focused on nail care, with an expanded selection of gel and artificial nails.

We believe that many of our owned brands, available only from Sally, offer equal or better quality than leading third-party brands. During the fiscal years 2026, 2025, and 2024, our Sally owned brand sales have been approximately 36%, 35%, and 34%, respectively, of total Sally sales.

BSG carries an extensive, industry-leading selection of third-party branded products, many of which have exclusive distribution rights with us. We believe our established relationships with licensed stylists and salons, combined with our broad assortment, enable us to offer competitive pricing across a variety of product categories. Our assortment and distribution are unique in certain geographies, and we continue to pursue the acquisition of additional distribution rights as well as expand our channels of operations with our existing brand portfolio. As one of the largest North American distributors of professional hair color and care products, carrying an extensive selection of branded merchandise and educating on the latest technology and techniques are critical to maintaining relationships with our community of professional stylists and estheticians.

Marketing and Advertising

Sally uses an integrated and increasingly personalized marketing approach to acquire, engage, and retain customers across digital and physical channels. We reach existing and potential customers through digital advertising, e-mail, social media,

• 4 - text messaging, mobile app communications, experiential marketing, and other channels. We also leverage customer data and insights to make our marketing more relevant and personalized across the customer journey.

Our marketing strategy is centered on helping customers build the knowledge, inspiration, and confidence to achieve their beauty goals. Through education, content, product discovery, and community experiences, we seek to deepen customer engagement across hair color, hair care, nails, and other beauty categories while reinforcing Sally Beauty's position as a specialty beauty retailer.

During fiscal year 2026, we expanded our experiential marketing platform through COLORfest, which combines product discovery, education and community engagement. The platform began with a consumer activation in Los Angeles and expanded through COLORfest on Campus, a multi-market college tour. These activations introduced Sally Beauty and our product assortment to younger consumers in environments designed to encourage trial, education and discovery, complementing our broader customer acquisition and brand-building efforts.

We also use content creators, professional stylists, beauty experts, and Sally Beauty associates to educate and inspire customers across social and digital platforms. These voices help customers build confidence in salon-quality hair color, hair care, nails, and self-expression while demonstrating the breadth and accessibility of our assortment. Our Sally Beauty Associate Affiliate Program further extends this approach by enabling associates to share their expertise and product experiences directly with customers through social media.

During fiscal year 2026, we continued to enhance our brand-building capabilities through earned media, strategic partnerships, experiential programs, and public relations. Together with our content, creator, and personalization efforts, these initiatives are designed to strengthen brand relevance, build deeper relationships with customers and support the continued evolution of Sally Beauty as a modern specialty beauty retailer.

BSG’s marketing programs are designed to promote its extensive selection of brand partners’ products at competitive prices and to educate and engage existing and potential customers. We work closely with our vendors to provide promotional offers for certain products to target existing and potential customers. We distribute promotional material through multiple channels, including print mail, e-mail, SMS, mobile app push notifications, social media, trade shows, educational events, virtual education events, store personnel, and SBCs. As of September 30, 2026, we had a network of 547 SBCs who personally consult, support, and sell directly to salons and salon professionals. In addition, we believe that our digital platforms enhance other efforts intended to promote awareness of our products by salons and salon professionals.

Customer Loyalty

In the U.S. and Canada, we have more than 15 million active customers (shopped with Sally in the past 12 months), a majority of whom are part of our Sally Beauty Rewards Program. Our Sally Beauty Rewards Program is free to join and designed to encourage customer loyalty and repeat purchases. The program provides our loyalty customers the ability to earn points on their Sally purchases and to convert those points to Sally Beauty Rewards when certain thresholds are met. Through the program, these customers may also receive exclusive savings and personalized marketing offers.

In the U.S., we also offer our Sally customers the opportunity to apply for the Sally Beauty Rewards Credit Card, which provides additional benefits to Sally Beauty Rewards members. Additionally, we offer our Sally professional customers and BSG customers the opportunity to apply for the Cosmo Prof Rewards Credit Card, which provides (i) discounts on Cosmo Prof purchases or (ii) points through the Sally Beauty Rewards Program on Sally purchases.

Through these programs, we are able to collect valuable point-of-sale customer data in order to increase our understanding of customers and enhance our ability to personalize our marketing. We will continue to monitor and adjust our Sally Beauty Rewards Program in an effort to further enhance our customer experience and promote repeat sales from both retail customers and salon professionals. Outside of the U.S. and Canada, our customer loyalty and marketing programs vary by marketplace.

Digital Strategy

We continue to expand our digital presence through our omni-channel business model, allowing customers to shop in stores, online, or through a combination of channels, including BOPIS and 2-hour delivery options. Our digital strategy focuses on enhancing the customer experience, expanding services for professional stylists, and providing education and expertise to support our customers. For fiscal years 2026, 2025, and 2024, our global e-commerce sales represented approximately 11.8%, 10.7%, and 9.8%, respectively, of our consolidated sales. Our digital initiatives include expanding third-party marketplaces and offering Licensed Colorist on Demand (“LCOD”) through our website, www.sallybeauty.com.

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In Sally, we offer LCOD to provide our customers with a more engaging shopping experience. LCOD is our digital-focused initiative where customers can live chat with a licensed colorist by text, voice, or video to learn more about our hair color product offerings and how to use our products to achieve their desired results. This online option is available in all 50 states and appears as a chat box when customers are browsing our selection of hair color merchandise on our website. Additionally, our licensed colorists are strengthening their knowledge of the hair care category offering care solutions to maintain their color. We have also expanded our presence on third-party digital marketplaces, including Amazon, DoorDash, Uber Eats, Instacart, Shipt, and Tiktok, with Shipt and TikTok added during fiscal 2026. These marketplaces give customers more ways to shop with us, driving digital sales growth and attracting new customers to Sally.

Distribution

Our distribution centers primarily receive merchandise from U.S.-based suppliers, with a smaller portion sourced from international locations. Our distribution network supports our stores, franchise locations, SBCs, and ship-to-customer orders through a combination of parcel and freight carriers. We procure our owned brand merchandise from domestic and international vendors and collaborate with our suppliers and transportation providers to manage the flow of merchandise into our distribution centers.

Over the past several years, we have continued to invest in our end-to-end supply chain systems, processes, and distribution capabilities. These investments include the ongoing implementation of a modern, cloud-based warehouse management system designed to improve inventory visibility, standardize processes, and increase the flexibility and scalability of our distribution network across fulfillment channels. Separately, improvements in our distribution processes have enabled us to optimize delivery frequencies to a majority of our Sally Beauty and BSG stores in the U.S. and Canada, improving labor productivity and reducing transportation costs while maintaining service levels and improving in-stock availability.

Seasonality

Our business is generally not seasonal.

Our Competition

The primary competitive factors in our industry include the price of branded and owned brand products; exclusive distribution arrangements; the quality, perceived value, brand name recognition, packaging, and variety of the products sold; customer service; efficiency of distribution networks; and the availability of desirable store locations.

Sally competes primarily with beauty product wholesale and retail outlets, including local and regional open-line beauty supply stores, professional-only beauty supply stores, mass merchandisers, online retailers, drug stores, department stores, and supermarkets, as well as salons that sell hair care products. BSG competes primarily with beauty product wholesale suppliers, including online retailers and manufacturers selling their products directly to salons and salon professionals.

We face competition from certain manufacturers that use their own sales forces to distribute their professional beauty products directly or align themselves with our competitors. Some of these manufacturers are vertically integrated through the acquisition of distributors and stores. We also face competition from authorized and unauthorized retailers as well as internet sites offering professional salon-only products that are not brand-approved for distribution.

Our Suppliers

We purchase our branded merchandise directly from manufacturers through supply contracts and purchase orders. For fiscal year 2026, our five largest suppliers–Henkel AG & Co. KGaA; Wella Company; the Professional Products Division of L’Oreal USA S/D, Inc.; John Paul Mitchell Systems; and Kao Corporation–accounted for approximately 44% of our consolidated merchandise purchases. We have developed long-standing relationships with these and other suppliers, including certain exclusive arrangements, which we believe contribute to our competitive position. We purchase products from these and many other manufacturers on an at-will basis or under contracts which can generally be terminated without cause upon 90 days or less notice or that expire without express rights of renewal.

Intellectual Property

In the U.S. and in other countries where we operate, we have registered or legally protected trademarks, copyrights, internet domain names, service marks and trade names that are used to promote and market our business, stores, digital platforms, and products. We believe many of these are well recognized and have significant value, including but not limited to the following: Sally®, Sally Beauty®, Cosmo Prof®, Armstrong McCall®, ION®, Beyond the Zone®, Generic Value Products®, Salon Care®, Silk Elements®, Bondbar®, Inspired by Nature®, Beauty Secrets®, Strawberry Leopard®, and Texture ID®.

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Our Company Purpose & Values

Our Company Purpose & Values guide our culture and reflect the impact we seek to have on our associates, customers, and communities.

Our Purpose: TO INSPIRE A MORE COLORFUL, CONFIDENT, AND WELCOMING WORLD

Our Values:

•BE YOURSELF. Come as you are—everyone is welcome here.

•BE AN INSPIRATION. Share your passion and knowledge with your team, your customers, the world.

•BE BOLD. Dive in. Move fast. Say yes.

•BE AN OWNER. Drive growth. Create your future.

•BE PART OF SOMETHING BIGGER. Take care of each other, our community, and our planet.

More information on our Purpose & Values can be found at: www.sallybeautyholdings.com/our-company/purpose-and-values.

Human Capital Management

As of September 30, 2026, we had approximately 26,500 global associates, including approximately 11,000 full-time associates. We believe our associates are essential to our success, bringing diverse skills, knowledge, experiences, and capabilities to our business. At the front line interacting with our customers or behind the scenes supporting our field teams, our associates play a major role in our business. While we often emphasize our technology-based transformations and our wide variety of professional beauty products as key attributes, nothing happens or succeeds without our people.

In return for what they do for us, we strive to, among other things:

•Ensure our associates work in a safe, healthy environment;

•Provide competitive compensation and benefits packages that attract and retain talent in every facet of our business – stores, direct sales, distribution centers, and corporate headquarters. Our benefits range from medical, dental, and vision care–including options for our part-time associates–to 401(k), short- and long-term disability, and a robust Employee Assistance Program. We also provide paid parental leave for mothers, fathers, or partners upon the birth or placement of a child;

•Provide meaningful learning and development opportunities that strengthen our associates’ knowledge, capabilities, and professional skills; and

•Create an environment and culture where everyone can bring their true self to work because our differences are what make us beautiful. At SBH, we believe our focus on Culture & Belonging is crucial to improving how we interact with and influence our associates, customer environments, and broader communities. We are committed to providing a safe and inclusive environment for our associates and customers alike.

Associate Health & Safety

We strive to create a safe and healthy work environment for all associates.

We place a high value on the health and safety of our associates, customers, suppliers, and vendors. This commitment is evidenced, in part, by our background check policy for new hires, training and policy implementations related to handling both associate and customer incidents, partnerships to maintain the stores and make necessary repairs, as well as ongoing support in the field and at the support center.

Additionally, we value our partnerships with suppliers and vendors, and we understand the impact they can have on our associates. Thus, SBH has included rules governing their conduct, both with respect to expectations while interacting with our associates and, for our foreign suppliers, assurances that they too are providing a safe and healthy working environment for their associates.

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Labor Practices

We provide competitive wages and benefits in a positive work environment where we focus on doing what is right.

We are an Equal Opportunity Employer with up-to-date policies, procedures, and practices with respect to important issues such as safety, discrimination, harassment, and retaliation. We provide focused training on these issues to our associates and managers.

We clearly communicate that any concerns related to issues such as discrimination, harassment, retaliation, and other issues such as wage law compliance and fraud should be reported immediately. We also communicate the avenues available to our associates to do so through our “SBH CARES” communications and posters. The reporting avenues include options to do so by phone or online through our “Employee Concern Line” and to do so anonymously if an associate prefers to take that approach.

We maintain processes and procedures designed to support compliance with applicable labor and employment laws, utilizing both internal and external resources.

We also emphasize the importance of taking care of our associates in our Company’s Code of Business Conduct and Ethics, the standard of conduct that applies to all of our associates, executive officers, and Board of Directors (the “Board”). The Code reflects the core principles of conducting our business as a good corporate citizen in compliance with all laws, rules, and regulations applicable to us and with regard for the welfare of our associates and providing equal opportunity to all associates and job applicants. You can review this important document athttp://investor.sallybeautyholdings.com.

Associate Engagement, Development and Culture

We live our values, listen to our associates, and take action.

We make significant efforts to ensure our associates are informed, engaged, and excited about the work they are doing and contributions they are making to our Company and our customers. We are committed to providing associates with what they need to thrive and grow their career. We significantly invest in our talent processes and set clear expectations around leadership competencies and our cultural values at all levels in the organization. At SBH, we consider the whole end-to-end talent cycle of an associate to ensure we select exceptional people to represent our business and best serve our customer. This includes robust interviewing processes as well as comprehensive onboarding programs to ensure new hires are set up to succeed in their early stages of joining SBH. There is also a strong cadence of completing regular cycles of performance management, linked to our Company values and leadership competencies, as well as regular reviews of our talent and succession pipelines.

Importantly, we devote significant effort and resources to the development of our associates, including providing almost all of our associates access to state-of-the-art learning management systems. We use these platforms to provide specifically designed and interactive award-winning e-learning courses in sales and service, product and hair knowledge, compliance training, and health and safety.

We also place significant value and attention on responding to feedback and input from associates. This includes surveys regarding issues such as culture, belonging, and engagement. We review our team’s input and comments, identify common themes, and set out action plans to respond. We believe listening is crucial, but taking action and making commitments are even more important.

As discussed below, our efforts around Culture & Belonging are a core focus of our associate engagement and the work environment for our teams.

Culture & Belonging

At SBH we celebrate differences, inclusivity, and self-expression. This fundamental aspect of SBH’s culture is rooted in our belief that beauty is for everyone, and everyone should find their own path to beauty. Our associates and our customers care about celebrating diversity and self-expression. We want our Company and our stores to be places where all of our associates and customers feel valued for who they are and experience a sense of belonging.

We come together to create a culture for “One & All”

Culture & Belonging are at the heart of who we are as a company–at the Board level, throughout our global workforce and in our shared commitment to serving a diverse customer base and their communities.

At the Board Level: The Board supports the Company's commitment to Culture & Belonging through its oversight and leadership. Having diverse voices on the Board enhances the Board’s expertise, broadens its viewpoint, and sets the tone to encourage leaders at all levels of the Company to listen to the concerns of our associates and customers alike. Our

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Compensation & Talent Committee provides hands-on oversight and guidance of our Culture & Belonging initiatives. The Board believes listening and responding to diverse voices is crucial to the Company’s success and long-term sustainability.

In Our Workforce: Our SBH team in the U.S. & Canada is approximately 90% women and approximately 50% people of color. In recent years, Newsweek has recognized SBH among America’s Greatest Workplaces, America’s Greatest Workplaces for Diversity, and America’s Greatest Workplaces for Women. We recognize and celebrate the bedrock values of inclusion, belonging, and engagement within our teams. For us, these are key drivers of the success of the business, as our associates should–and do–reflect the various qualities of our customers and what they desire and expect from SBH. We also recently launched our new Cultural Committee to help bring a greater sense of community at our new headquarters office in Plano, Texas.

During the fiscal year, we furthered our work with our existing Employee Resource Groups (“ERGs”). We proudly host ERGs that represent our Black, Hispanic, Women, LGBTQ+, Veteran, Disabled, and Neurodivergent associates. We encourage our associates to get involved with our ERGs, which are open to all associates, to form deeper relationships with their colleagues based on mutual respect, dignity, and understanding. These ERGs have made a meaningful impact on our team and business, and we will continue to connect and engage them on how we do business, how we best serve our customers, and how we enhance our team and culture.

In Our Customer Base: Our customers span the entire continuum of age, gender, ethnic, and cultural diversity. We sell beauty products to treat and style every kind of hair; we deliver a tailored assortment of beauty products that serve the local communities where our stores are located. Serving the varied demographics and needs of our customers drives a culture and workforce that embraces and reflects the communities we serve.

We will continue to develop and evolve how we enhance Culture & Belonging throughout SBH. We recognize the value these initiatives bring to our Company, our associates, our customers, and the communities we serve.

More information on our approach to Culture & Belonging can be found at: www.sallybeautyholdings.com/our-company/culture-and-belonging.

Regulation

We are subject to federal, state, and local laws and regulations in the U.S., as well as laws and regulations in the foreign jurisdictions in which we operate. These laws and regulations govern, among other things, the composition, packaging, labeling, and safety of the products we sell, the methods we use to sell these products, and the methods we use to import these products.

For example, in the U.S., most of the products we sell and the content and methods of advertising and marketing that we utilize are subject to both federal and state regulations administered by a host of federal and state agencies, including, in each case, and among other agencies, one or more of the following: the Food and Drug Administration (the “FDA”), the Federal Trade Commission, and the Consumer Product Safety Commission. The transportation and disposal of many of our products are also subject to federal and state regulation. State and local agencies regulate many aspects of our business. We also face comprehensive regulation outside the U.S., focused primarily on product labeling and safety issues, such as cosmetic regulations administered by the European Commission, Health Canada, the Mexico Ministry of Health (COFEPRIS), and the Public Health Institute of Chile (ISP). We believe we are in material compliance with the laws and regulations to which we are subject, although no assurance can be provided that this will remain true going forward or that we will not be required to incur meaningful expenses to comply with such laws and regulations.

As of September 30, 2026, we supplied franchised stores located in the U.S. As a result of these franchisor-franchisee relationships, we are subject to regulation when offering and selling franchises. The applicable laws and regulations affect our business practices, as franchisor, in a number of ways, including restrictions placed upon the offering, renewal, termination, and disapproval of assignment of franchises. To date, these laws and regulations have not had a material effect upon our operations.

Access to Public Filings

Our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K, and amendments to such reports are available, without charge, on our website, www.sallybeautyholdings.com, as soon as reasonably possible after they are filed electronically with the Securities and Exchange Commission (“SEC”) under the Exchange Act. The SEC maintains an internet site that contains our reports, proxy and information statements, and other information we file electronically with the SEC atwww.sec.gov. We will provide copies of such reports to any person, without charge, upon written request to our Investor Relations Department at our principal office. The information found on our website shall not be considered to be part of this or any other report filed with or furnished to the SEC.

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