Why Sally Beauty Holdings Stock Soared Today
Shares of Sally Beauty Holdings (NYSE: SBH) jumped as much as 19.2% early Tuesday, then settled to trade up around 8.5% as of 3:45 p.m. ET after the beauty products retailer's latest quarterly results technically arrived below expectations. Investors appear to be celebrating the company's otherwise resilient performance amid a difficult macroeconomic environment as inflation continues to fall.
For its fiscal fourth quarter of 2023, ended Sept. 30, Sally Beauty's net sales declined 4.3% year over year, to $921 million, including a comparable sales decline of 1.6%. That translated to non-GAAP (adjusted) net income of $45.7 million, or $0.42 per share. Analysts, on average, were modeling adjusted earnings of $0.46 per share on revenue of $930 million.
Nonetheless, Sally Beauty CEO Denise Paulonis noted the company's full fiscal-year results were in line with expectations laid out in the beginning of the year -- including a consolidated comparable sales increase of 1.4%. Sally beauty also generated operating cash flow of $116.5 million during the quarter.
Source Fool.com
