Shares of Sally Beauty Holdings rose after the specialty retailer reported progress toward sustainable earnings growth. Net sales inched up 0.2% year over year to $935 million in its fiscal third quarter, while comparable sales for stores open at least 14 months climbed 1.6% and e-commerce sales rose 11% to $110 million. Adjusted net earnings increased 4% to $54 million, and adjusted earnings per share climbed 8% to $0.55, boosted by stock buybacks. The company generated $62 million in free cash flow and raised its full-year earnings per share guidance to $2.04 to $2.08 on sales of roughly $3.7 billion. CEO Denise Paulonis said new categories such as fragrances and men's products should help Sally Beauty win more market share.
Sally Beauty Holdings IncEarnings growth, raised guidance, and buybacks drive positive outlook.