By Kelly Cloonan
Sally Beauty Holdings shares were higher after the company beat Wall Street's expectations for adjusted earnings and said it has further reduced its debt levels in the fiscal second quarter.
The stock rose 22% to $10.01 on Monday, on pace for its largest percent increase since 2008. Shares have declined 6% over the past 12 months.
The beauty supply company on Monday posted a fiscal second-quarter profit of $39.2 million, or 38 cents a share, compared with $29.2 million, or 27 cents a share, a year earlier.
Adjusted earnings per share were 42 cents, ahead of estimates of 39 cents a share according to analysts polled by FactSet.
Revenue fell to $883.1 million compared with $908.4 million a year ago. Analysts expected $901.8 million according to FactSet.
During the quarter, the company further reduced its debt levels by $36 million, ending the period with a net debt leverage ratio of 1.8x, down from 1.9x at the end of the first quarter.
Chief Executive Denise Paulonis said challenging macroeconomic conditions dragged on the company's top line, but careful cost control and strong gross margins drove increased profitability in the quarter.
For the third quarter, the company forecasts comparable sales to be flat to down 2% from a year earlier. For the full year, it expects comparable sales to be flat to down 1%.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
May 12, 2025 12:31 ET (16:31 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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