Sally Beauty Holdings Inc.’s quarterly results beat market expectations, as consumers continued to prefer doing their own make-up at home instead of heading to salons during the holiday season, lifting its shares over 16 percent.

Along with improved customer trends, the beauty supplies and hair products distributor has been expanding gross margins by focusing on its high-margin private label business.

The company, which began with a single store in New Orleans in 1964 and now owns more than 3,800 stores, has also boosted margins with low-cost sourcing.

Sally Beauty, which has now topped Wall Street expectations for four straight quarters, witnessed strong demand at both its Sally Beauty Supply and Beauty Systems Group divisions

Sales at Sally Beauty Supply stores, which offers more than 6,000 products for hair, skin, and nails under brands such as Clairol, L’Oreal, Wella and Conair, rose 10 percent to $481 million during the quarter.

While Beauty Systems Group stores, which target beauty professionals and salons and sell products under brands such as Paul Mitchell, Wella, Sebastian, Goldwell and TIGI saw sales rise 17 percent.

Cosmetics companies like Estee Lauder and Elizabeth Arden also topped profit expectations on Thursday, and raised their fiscal year forecasts as sales jumped overseas while parts of the U.S. cosmetics market remained under pressure.

October-December net income was $40.9 million, or 22 cents a share, compared with $26.1 million, or 14 cents a share, a year ago.

The company said sales rose 13 percent to $793.6 million for the quarter. Analysts on average expected a profit of 19 cents a share, excluding special items, on revenue of $770.5 million, according to Thomson Reuters I/B/E/S.

Gross margins for the company, whose rivals include Ulta Salon, Cosmetics & Fragrance and Regis Corp., rose 50 basis points to 47.8 percent.

For the quarter, sales at stores open for at least a year, or same-store sales, rose 6.4 percent.

Shares of the Denton, Texas-based company shares were up 15 percent at $14.52 in Thursday morning trade on the New York Stock Exchange. They touched a high of $14.96 earlier in the session.