Sally Beauty Holdings (NYSE: SBH) reported Q2 EPS of $0.57, $0.42 better than the analyst estimate of $0.15. Revenue for the quarter came in at $926.3 million versus the consensus estimate of $824.97 million.

Fiscal 2021 Second Quarter Summary

• Consolidated same store sales increased 6.5%, primarily reflecting the favorable impact in the U.S. from improving consumer confidence, government stimulus payments and the easing of COVID-19 restrictions in salons;
• Global e-commerce sales increased 56%;
• GAAP gross margin of 50.4%, up 110 basis points compared to the prior year;
• GAAP operating earnings of $76 million and GAAP operating margin of 8.2%, Adjusted Operating Earnings of $112 million and Adjusted Operating Margin of 12.1%, up 510 basis points compared to the prior year;
• GAAP diluted net earnings per share of $0.34 and Adjusted Diluted Net Earnings Per Share of $0.57, up 183% and 148%, respectively, compared to the prior year;
• Strong liquidity position, balance sheet cash and cash equivalents of $408 million and zero balance outstanding on $600 million asset-based line of credit at quarter end.

“We are pleased to report strong financial results across all of our key measures despite extensive store closures in parts of our international territories and salon closures in California in January,” said Chris Brickman, president and chief executive officer. “In the U.S., we saw an acceleration in consumer demand in the latter part of the quarter, which drove a net sales increase of 6.3%. Our top line performance, coupled with ongoing strength in gross margin, resulted in significant earnings per share growth compared to the prior year.”

“In the second half of the year, we will continue to focus on growing customer engagement and loyalty, leveraging our new capabilities in support of our mission to recruit and retain color customers, and implementing the remaining steps in our successful transformation journey, which remains on track to be substantially completed by the end of the year. It is clear that the capabilities we’ve been building across digital, customer engagement and supply chain are bearing fruit and position us to drive sustainable long-term growth.”

For earnings history and earnings-related data on Sally Beauty Holdings (SBH) click here.