Shares of Sally Beauty (SBH) - Get Sally Beauty Holdings Inc. (Name to be changed from Holdings Inc.) Report were rising Thursday after the cosmetics chain reported better-than-expected first-quarter revenue and adjusted earnings.
Shares of the Denton, Texas, company at last check rose 18% to $23.82. The stock on Thursday touched a 52-week high $25.10, up 24%.
Sally Beauty reported adjusted earnings of 57 cents a share, nearly four times the FactSet consensus estimate of 15 cents a share.
Revenue rose 6.3% to $926.3 million from $871 million a year earlier and above the FactSet consensus estimate of $825 million.
Results were strong across all key measures "despite extensive store closures in parts of our international territories and salon closures in California in January,” President and Chief Executive Chris Brickman said in a statement.
Consolidated same-store sales increased 6.5% and global e-commerce sales rose 56%, primarily reflecting improving consumer confidence, government stimulus payments and easing of restrictions in salons.
"In the U.S., we saw an acceleration in consumer demand in the latter part of the quarter, which drove a net sales increase of 6.3%," Brickman added.
The executive noted that gross-profit margin widened 1.1 percentage points from a year earlier, to 50.4%.
In January, the company used excess cash to pay the $213 million balance outstanding on its 4.5% fixed-rate term loan.
At the end of the quarter, Sally Beauty had cash and equivalents of $408 million and a zero balance outstanding on its $600 million asset-based revolving line of credit.
“In the second half of the year, we will continue to focus on growing customer engagement and loyalty," Brickman said.