Sally Beauty Holdings (NYSE: SBH) saw its stock soar 6.24% in pre-market trading on Monday, as the beauty supplies retailer reported better-than-expected earnings for its second quarter of fiscal 2025.

The company announced quarterly adjusted earnings per share of $0.42, surpassing the consensus estimate of $0.39. This earnings beat appears to have sparked investor optimism, driving the stock higher before the market open. However, Sally Beauty's revenue for the quarter came in at $883 million, falling short of analysts' expectations of $901.46 million.

Despite the revenue miss, investors seem to be focusing on the positive aspects of the report. Sally Beauty highlighted that this marks the third consecutive quarter of adjusted operating margin expansion, suggesting improved profitability. The company's ability to exceed earnings expectations in a challenging retail environment may be contributing to the stock's pre-market rally. As the trading day progresses, it will be interesting to see if this early momentum can be maintained and whether additional details from the earnings call will further influence investor sentiment.