Sally Beauty beats earnings estimates amid resilient beauty product demand

Sally Beauty Holdings (NYSE:SBH) stock rose in premarket trading on Wednesday after topping Q2 earnings estimates.

For its fiscal second quarter, the Texas-based specialty retailer reported $0.41 in earnings per share, topping expectations by $0.04. Meanwhile, a $918.71M in revenue came in $29.71M above the consensus estimate. Consolidated comparable sales increased 5.7% in the quarter, accelerating sharply from a 0.2% figure in the Omicron-impacted Q1 2022.

“We delivered second quarter net sales of $919M, a comparable sales increase of 6%, Adjusted Gross Margin of 51% and Adjusted EBITDA of $105M,” CEO Denise Paulonis commented. “As we look ahead, our focus remains on serving our customers and driving long-term growth and shareholder value through our ongoing efforts around our strategic initiatives: enhancing our customer centricity, growing high margin owned brands and amplifying innovation, and increasing the efficiency of our operations and optimizing our capabilities.”

Management forecast a low-single digit increase in comparable sales for the full year while net sales are expected to decline by low-single digits amid store closures and optimization efforts. Gross margin is expected to remain above 50% and adjusted operating margin is expected to be in the range of 8.5% and 9.5%.

Shares of Sally Beauty (SBH) rose 2.96% before the bell on Thursday.

Read more on the details of the results.