Sally Beauty has been grappling with higher SG&A expenses for a while now. In the second quarter of fiscal 2024, Sally Beauty's adjusted SG&A expenses were $394.5 million, up $4.8 million year over year. Elevated labor costs and rent expenses primarily fueled the increase. In its last earnings call, management highlighted that it expects fiscal 2024 SG&A dollars to be up modestly year over year. The projection indicates increased labor costs and investments in upper funnel marketing as well as other expenses associated with strategic growth initiatives.