Sally Beauty Holdings Inc. (SBH) stock is soaring 13.07% in intraday trading, building on its pre-market gains following the release of its fiscal 2025 third-quarter results that surpassed analyst expectations. The beauty products retailer demonstrated resilience in a challenging macroeconomic environment, reporting better-than-anticipated sales and earnings figures.

For the quarter ended June 30, 2025, Sally Beauty reported consolidated net sales of $933.31 million, slightly beating the analyst consensus estimate of $928.8 million. While this represents a 1% decrease from the same period last year, the company's performance showcased its ability to navigate consumer spending headwinds. Notably, Sally Beauty's adjusted earnings per share (EPS) came in at $0.51, significantly surpassing the analyst estimate of $0.42 and marking a 13.33% increase from the $0.45 reported in the previous year.

Investors were particularly encouraged by Sally Beauty's improved profitability and optimistic outlook. The company expanded its gross margin by 50 basis points to 51.5%, with the adjusted gross margin rising 100 basis points to 52.0%. Furthermore, Sally Beauty raised its full-year adjusted operating margin guidance to 8.6%-8.7%, signaling confidence in its operational efficiency and cost management strategies. The company's "Fuel for Growth" initiative was cited as a key driver behind the operating margin expansion and double-digit EPS growth. Despite the overall sales decline, Sally Beauty highlighted strong growth in hair color and digital marketplaces, along with continued momentum at its Beauty Systems Group due to expanded distribution and new brand innovation. These factors, combined with the company's ability to beat estimates in a challenging retail environment, have contributed to the significant stock price increase today.