DENTON, Texas (AP) — Sally Beauty said Thursday that its fiscal fourth-quarter net income rose 21 percent as sales climbed at its businesses. The beauty products company's adjusted earnings topped Wall Street's expectations and shares climbed in morning trading.
Sally Beauty earned $65.6 million, or 35 cents per share, compared with $54.4 million, or 29 cents per share, in the prior-year period.
Taking out a $10.2 million charge related to a possible lawsuit settlement, earnings were 39 cents per share.
Analysts expected earnings of 36 cents per share, according to a FactSet poll.
Sally Beauty's stock added 75 cents to $25.50 in morning trading. The shares have traded in a range of $18.80 to $28.35 over the last year.
Revenue for the three months ended Sept. 30 climbed 5 percent to $882.6 million from $837.2 million, benefiting from acquisitions and new store openings.
Wall Street predicted higher revenue of $885.2 million.
Sales increased at both Sally Beauty supply and the beauty systems group. Sally Beauty Supply posted a 6 percent rise in sales, while the beauty systems group reported a 4.5 percent gain.
Revenue at stores open at least a year, a key gauge of a retailer's health, rose 4.3 percent. This figure excludes results from stores recently opened or closed.
For the full year, Sally Beauty Holdings Inc. earned $233.1 million, or $1.24 per share. That's up 9 percent from $213.7 million, or $1.14 per share, in the previous year.
Adjusted earnings were $1.42 per share.
Annual revenue rose 8 percent to $3.52 billion from $3.27 billion.
Revenue at store open at least a year increased 6.4 percent.
For fiscal 2013, Sally Beauty anticipates revenue at stores open at least a year will increase 4 percent to 5 percent.
Sally Beauty operates 4,500 stores, including approximately 200 franchised units, worldwide.