Sally Beauty Holdings (SBH) stock jumped 6.24% in pre-market trading on Monday after the company reported better-than-expected second-quarter earnings. The beauty supplies retailer posted adjusted earnings per share of 42 cents, surpassing the consensus estimate of 39 cents.
While the company's revenue fell short of expectations at $883 million compared to the anticipated $901.46 million, investors seemed to focus on the positive earnings surprise. Sally Beauty also reported its third consecutive quarter of adjusted operating margin expansion, indicating improved profitability despite challenging market conditions.
The strong pre-market rally suggests that investors are optimistic about Sally Beauty's ability to navigate the current retail environment and maintain profitability. However, the lower-than-expected revenue figure may raise questions about the company's growth prospects in the coming quarters.