Sally Beauty Holdings Inc.’s (SBH) fiscal first-quarter earnings surged 63% amid growing margins and strong same-store sales as the company reported record quarterly revenue. Although the beauty industry has been hit by lower consumer spending, the specialty retailer and professional beauty supplier’s profit has been growing in recent quarters. Last month the company agreed to acquire a professional beauty products wholesaler based in Europe, and it does business in Asia.

“We plan to continue investing in company growth via acquisitions and organic store openings while reducing our long-term debt,” says Gary Winterhalter, president and chief executive.

The company reported a profit of $26.1 million, or 14 cents a share, up from $16.1 million, or 9 cents a share, a year earlier. Excluding items such as currency adjustments, earnings rose to 13 cents from 10 cents. Revenue increased 9.2% to $704.9 million as same-store sales climbed 3.8%.

Analysts polled by Thomson Reuters most recently forecast earnings of 14 cents on revenue of $692 million. Gross margin rose to 47.3% from 47%. Earnings in its beauty-supplies segment, which sells to consumers, rose 6.8%, as same-store sales improved 3.7%.

At its beauty-systems group, which distributes to salon operators, sales rose 13% amid acquisitions, with same-store sales up 4.3% and earnings jumping 27% amid cost cutting. Shares closed Wednesday at $8.38 and didn’t trade premarket. The stock is up 74% the past year.