Beauty Systems Group Announces Distribution Partnership with Cutting-Edge Hair Care Brand K18

Rhea-AI Summary

Sally Beauty Holdings (NYSE: SBH) has announced that its Beauty Systems Group division has signed a distribution agreement with K18, a leading professional hair care brand. The partnership will launch on April 1st across all Beauty Systems Group stores in the U.S. and Canada, including their e-commerce channel.

K18 is known for its proprietary K18PEPTIDE™ technology, which addresses hair damage at the molecular level. The brand has gained significant recognition with over 20 billion TikTok views and more than 30 prestigious awards, including WWD Product of the Year and Fast Company's Most Innovative. The brand's products are designed to provide faster and more effective solutions for hair repair, eliminating traditional long processing times.

Positive

• Strategic expansion of product portfolio with a highly successful brand
• Distribution agreement covers all U.S. and Canadian stores plus e-commerce
• Partnership with an award-winning brand (30+ awards)
• Access to K18's significant social media presence (20B+ TikTok views)

Negative

• None.

Insights

Market Research Analyst

The distribution agreement with K18 represents a significant strategic win for Sally Beauty Holdings that could materially impact its professional segment performance. K18's strong social media presence with over 20 billion TikTok views and 30+ prestigious awards demonstrates exceptional brand equity in the professional beauty space.

This partnership is particularly well-timed as the professional beauty industry increasingly gravitates toward science-backed, time-saving solutions. K18's proprietary peptide technology addresses a critical pain point for stylists by reducing processing times for repair treatments, potentially increasing salon efficiency and service capacity. The April 1st launch across all U.S. and Canadian stores positions BSG to capture the spring/summer seasonal uptick in salon services.

From a competitive standpoint, securing K18 strengthens BSG's market position against major competitors like SalonCentric and CosmoProf Beauty. The brand's professional-first approach aligns perfectly with BSG's core customer base of licensed professionals, while its consumer appeal could drive retail sales through the pro channel. K18's premium positioning and technological differentiation should support healthy margins, potentially contributing to profitability improvements in BSG's distribution segment.

The timing of this partnership also coincides with growing consumer demand for professional-grade hair care solutions, a trend accelerated by social media influence and increasing awareness of hair health. This could help SBH capture a larger share of the premium hair care market, particularly important as consumers continue to invest in higher-quality beauty products despite economic pressures.

Launch will Include All U.S./Canadian Stores and Ecommerce

DENTON, Texas--(BUSINESS WIRE)-- Sally Beauty Holdings, Inc. (NYSE: SBH) (“the Company”), the leader in professional hair color, today announced that Beauty Systems Group, the Company’s segment which distributes beauty products to salon professionals through its Cosmo Prof and Armstrong McCall branded divisions, has signed a distribution agreement with K18, one of the most admired hair care brands in the professional channel.

Since its launch, K18 has been a professional-first brand, focused on creating products designed to help stylists unlock next-level expression for their clients. Powered by the proprietary K18PEPTIDE^TM, the brand’s expanding lineup of biotech-backed haircare products is designed to address hair damage at the molecular level and promote healthy, vibrant hair - providing stylists with faster, more effective solutions that eliminate the long processing times traditionally associated with repair treatments. Beloved by the professional stylist community and consumers worldwide, K18’s mission to rethink the rules of haircare resonates across the globe. K18 has earned over 20 billion TikTok views and garnered more than 30 prestigious awards, including WWD (Women’s Wear Daily) Product of the Year and Fast Company’s Most Innovative.

The partnership with K18 will launch April 1^st in all Beauty Systems Group stores in the U.S. and Canada, including our e-commerce channel.

“As part of our ongoing commitment to bring innovation to our stylists, we are excited to be launching K18 to our pro community in April. K18 delivers cutting-edge technology and is an admired brand among stylists with a loyal customer following. We are thrilled at this opportunity to bring such a phenomenal and high-efficacy brand to our stylists across our U.S and Canadian territories,” said Mark Spinks, president of Beauty Systems Group.

About Sally Beauty Holdings, Inc.

Sally Beauty Holdings, Inc. (NYSE: SBH), as the leader in professional hair color, sells and distributes professional beauty supplies globally through its Sally Beauty Supply and Beauty Systems Group businesses. Sally Beauty Supply stores offer up to 7,000 products for hair color, hair care, nails, and skin care through proprietary brands such as Ion®, Bondbar®, Strawberry Leopard®, Generic Value Products®, Inspired by Nature® and Silk Elements® as well as professional lines such as Wella®, Clairol®, OPI®, L’Oreal®, Wahl® and Babyliss Pro®. Beauty Systems Group stores, branded as Cosmo Prof® or Armstrong McCall® stores, along with its outside sales consultants, sell up to 8,000 professionally branded products including Paul Mitchell®, Wella®, Matrix®, Schwarzkopf®, Kenra®, Goldwell®, Joico®, Amika® and Moroccanoil®, intended for use in salons and for resale by salons to retail consumers. For more information about Sally Beauty Holdings, Inc., please visit https://www.sallybeautyholdings.com/.

About K18 Biomimetic Hair Science

K18 is a cutting-edge, biology-driven haircare brand co-founded by Suveen Sahib that is transforming the haircare industry with advanced biotechnology. At the heart of K18’s innovation is the patented K18PEPTIDE™, a high-performance ingredient that reverses hair damage in just four minutes. This revolutionary peptide, developed using computational biology, mimics the molecular structure of human hair to reconnect broken bonds and repair damage from the inside out.

K18 now reaches customers in over 90 countries, with a growing global community of users and professionals alike. In 2024, K18 was acquired by Unilever, accelerating its mission to deliver cutting-edge, sustainable, and science-backed haircare solutions.

For more information, visit k18hair.com or follow @K18Hair on Instagram and TikTok.

Cautionary Notice Regarding Forward-Looking Statements

Statements in this news release and the schedules hereto which are not purely historical facts or which depend upon future events may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “believes,” “projects,” “expects,” “can,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “will,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters.

Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including, those described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2024. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein. We assume no obligation to publicly update or revise any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250206386274/en/

Jeff Harkins

Investor Relations

940-297-3877

jharkins@sallybeauty.com

Source: Sally Beauty Holdings, Inc.

FAQ

When will K18 products be available at Sally Beauty Holdings (SBH) stores?

K18 products will be available at Beauty Systems Group stores in the U.S. and Canada starting April 1st, including their e-commerce channel.

What is the significance of K18's technology for SBH's product offering?

K18's proprietary K18PEPTIDE™ technology addresses hair damage at the molecular level, providing faster and more effective solutions compared to traditional repair treatments.

How successful is K18 in the professional hair care market?

K18 has achieved significant success with over 20 billion TikTok views and more than 30 prestigious awards, including WWD Product of the Year and Fast Company's Most Innovative.

Which SBH divisions will distribute K18 products?

K18 products will be distributed through Beauty Systems Group's Cosmo Prof and Armstrong McCall branded divisions.