Sally Beauty Holdings (SBH) stock surged 5.18% in pre-market trading on Thursday following the release of its fourth-quarter fiscal 2025 results and positive future guidance. The beauty supply retailer reported better-than-expected earnings and sales, demonstrating resilience in a challenging market environment.

For the fourth quarter, Sally Beauty posted adjusted earnings per share of $0.55, surpassing analyst expectations of $0.47 and marking a 10% increase from the previous year. Net sales rose 1.3% to $947.1 million, beating the Wall Street consensus of $932.88 million. The company's comparable sales growth of 1.3% also outperformed analyst projections of a 0.1% increase.

Adding to investor optimism, Sally Beauty provided an encouraging outlook for fiscal 2026 and beyond. The company expects adjusted earnings of $2.00 to $2.10 per share on sales of $3.71 billion to $3.77 billion for fiscal 2026. Furthermore, Sally Beauty announced long-term financial targets through fiscal 2028, including annual adjusted earnings growth of 10% and net sales growth in the range of 1% to 3%. This positive guidance, coupled with the company's strong Q4 performance, has likely fueled the pre-market stock surge as investors anticipate continued growth and profitability.