U.S. Markets closed

Sally Beauty 1Q earnings rise, but miss estimates

DENTON, Texas (AP) -- Sally Beauty Holdings Inc. said Thursday that its profit surged in its first fiscal quarter on business from new store openings, though the results fell short of Wall Street expectations.

The company's net income rose to $59 million, or 32 cents per share, up from $30.1 million, or 16 cents per share, in the prior-year period. Revenue rose 4.7 percent to $905.4 million

Analysts polled by FactSet expected earnings per share of 34 cents on revenue of $915.1 million.

"We performed very well during the quarter given our challenging year-over-year comparisons," said CEO Gary Winterhalter in a statement.

Sales increased at both Sally Beauty supply and the beauty systems group. Sally Beauty Supply sales rose 4.2 percent, while the beauty systems group reported a 5.5 percent gain.

Sally Beauty sells cosmetics and beauty supplies to both the consumer and professional markets.

Quarterly revenue at stores open at least a year, a key gauge of a retailer's health, rose 2.8 percent. This figure excludes results from stores recently opened or closed.

Sally Beauty operates more than 4,500 stores worldwide.

Company shares fell 50 cents to $26.34 in afternoon trading.