Regis Reports First Quarter 2020 Operating Results and Continues to Make Significant Progress in Its Transiton to a Capital Light, High Growth and Technology Enabled Fully Franchised Model

During The First Quarter, The Company Successfully Sold and Converted 545 Company Owned Salons to Franchise Operations Generating $38 Million In Cash Proceeds

Approximately 900 Company Owned Salons, or Approximately 42% Of The Remaining Company Owned Salon Portfolio Are Now In Various Stages Of Negotiations To Be Purchased By New Or Existing Franchisees

MINNEAPOLIS–(BUSINESS WIRE)–Regis Corporation (NYSE: RGS):

 

 

Three Months Ended September 30,

(Dollars in thousands)

 

2019

 

2018

Consolidated Revenue

 

$

247,038

 

 

$

287,835

 

System-wide revenue (1)

 

$

449,389

 

 

$

465,212

 

 

 

 

 

 

System-wide Same-Store Sales Comps

 

(1.1

)%

 

0.8

%

Franchise Same-Store Sales Comps

 

(0.1

)%

 

1.2

%

Company-owned Same-Store Sales Comps

 

(2.0

)%

 

0.5

%

 

 

 

 

 

Loss From Continuing Operations

 

$

(14,178

)

 

$

(463

)

Diluted Loss per Share From Continuing Operations

 

$

(0.39

)

 

$

(0.01

)

EBITDA (2)

 

$

(5,842

)

 

$

9,767

 

as a percent of revenue

 

(2.4

)%

 

3.4

%

 

 

 

 

 

As Adjusted (2)

 

 

 

 

Net Loss, as Adjusted

 

$

13,903

 

 

$

11,317

 

Diluted Earnings per Share, as Adjusted

 

$

0.37

 

 

$

0.25

 

EBITDA, as Adjusted (2)

 

$

29,788

 

 

$

25,134

 

as a percent of revenue

 

12.1

%

 

8.7

%

 

(1) Represents total sales within the system, excluding TBG.

(2) See GAAP to non-GAAP reconciliations, within the attached section titled “Non-GAAP Reconciliations.”

Regis Corporation (NYSE: RGS), a leader in the haircare industry, whose primary business is franchising, owning and operating technology enabled hair salons, today reported a first quarter 2020 loss from continuing operations of $14.2 million, or $0.39 per diluted share as compared to a loss from continuing operations of $0.5 million, or $0.01 per diluted share in the first quarter of 2019. The Company’s reported results include $32.1 million of non-cash goodwill derecognition associated with the sale of 545 salons to franchisees, and $3.9 million of other discrete costs. Excluding discrete items, and the income from discontinued operations, the Company reported increased first quarter 2020 adjusted net income of $13.9 million, or $0.37 earnings per diluted share as compared to adjusted net income of $11.3 million, or $0.25 earnings per diluted share for the same period last year. The year-over-year increase in adjusted net income was driven primarily by gains from the sale of salons to franchisees.

Total revenue in the quarter of $247.0 million decreased $40.8 million, or 14.2%, year-over-year driven primarily by the conversion of a net 1,143 company-owned salons to the Company’s asset-light franchise portfolio over the past 12 months. These reductions were partially offset by revenue growth of $34.5 million in the Company’s Franchise segment. The Company noted that in connection with the new leasing guidance, it now records franchise rental income and the corresponding rental expense on separate line items. The net impact is to gross up both revenue and expense with no impact to overall earnings. The impact during the first quarter was an increase in revenue and expense by $31.4 million with no impact on operating income.

First quarter adjusted EBITDA of $29.8 million increased $4.7 million, versus the same period last year. Excluding the $26.2 million and $7.1 million gain from the sale of company-owned salons during the current and prior year quarter, respectively, adjusted EBITDA of $3.6 million was $14.4 million unfavorable versus the same period last year driven primarily by the elimination of EBITDA that had been generated in the prior year period from the net 1,143 company-owned salons that were sold and converted to the Company’s asset-light franchise portfolio over the past 12 months.

Hugh Sawyer, President and Chief Executive Officer, commented, “We are pleased to report meaningful progress in our strategic transformation to a capital light, high growth, technology enabled franchise company.” Mr. Sawyer added, “We expect to utilize the cash proceeds we are generating from the sale of company-owned salons in various ways to maximize shareholder value. “Mr. Sawyer concluded, “Although we have more work to do before our transition is complete, we remain convinced that a fully franchised business that generates a higher return on its capital will prove to be in the best long-term interests of our shareholders.”

First Quarter Segment Results

Franchise

 

 

Three Months Ended September 30,

 

Increase

(Decrease)

(Dollars in millions)

 

2019

 

2018

 

Revenue

 

 

 

 

 

 

Product

 

$

11.8

 

 

$

10.1

 

 

16.8

%

Product sold to TBG mall locations

 

1.3

 

 

5.5

 

 

(76.4

)%

Total product

 

$

13.1

 

 

$

15.6

 

 

(16.0

)%

Royalties and fees (1)

 

28.0

 

 

22.4

 

 

25.0

%

Franchise rental income

 

31.4

 

 

 

 

100.0

%

Total franchised salons revenue (2)

 

$

72.5

 

 

$

38.0

 

 

90.8

%

 

 

 

 

 

 

 

Franchise Same-Store Sales Comps (3)

 

(0.1

)%

 

1.2

%

 

(130 bps)

 

 

 

 

 

 

 

EBITDA, as Adjusted

 

11.9

 

 

9.9

 

 

20.2

%

as a percent of revenue

 

16.4

%

 

26.0

%

 

(960) bps

as a percent of adjusted revenue (4)

 

40.4

%

 

40.2

%

 

20 bps

 

 

 

 

 

 

 

Total Franchise Salons

 

4,456

 

 

4,205

 

 

6.0

%

as a percent of total Company-owned and Franchise salons

 

63.6

%

 

52.4

%

 

 

 

(1) Total includes $0.5 million of royalties related to TBG during the three months ended September 30, 2018.

(2) Total is a recalculation; line items calculated individually may not sum to total due to rounding.

(3) Same-store sales include current franchise salons that have been a franchise location for more than one year, therefore TBG is not included in same-store sales.

(4) Adjusted for non-contributory revenue associated with Ad Fund, franchise rental income and TBG product sales. See Non-GAAP reconciliation.

First quarter Franchise revenue was $72.5 million, a $34.5 million, or 90.8% increase compared to the prior year quarter and included franchise rental income of $31.4 million due to the adoption of the new lease accounting requirements. Royalties and fees of $28.0 million, were a $5.6 million, or 25.0% increase versus the same period last year driven by increased franchise salon counts. Product sales to franchisees of $13.1 million decreased $2.5 million versus the same period last year driven primarily by lower sales to TBG and lower same-store retail sales, partially offset by increased franchise salon counts.

Franchise adjusted EBITDA of $11.9 million improved $2.0 million, or 20.2% year-over-year primarily driven by the increase in salon counts, partially offset by planned strategic G&A investments to enhance the Company’s franchisor capabilities and support the increased volume and cadence of transactions and conversions into the franchise portfolio. Excluding the impact of TBG, Franchise adjusted EBITDA was $2.5 million favorable year-over-year.

Company-Owned Salons

 

 

Three Months Ended September 30,

 

(Decrease)

(Dollars in millions) (1)

 

2019

 

2018

 

Total Revenue

 

$

174.5

 

 

$

249.8

 

 

(30.2

)%

Company-owned Same-Store Sales Comps

 

 

(2.0

)%

 

 

0.5

%

 

(250) bps

Year-over-Year Ticket change

 

 

3.0

%

 

 

4.2

%

 

 

Year-over-Year Transaction change

 

 

(5.0

)%

 

 

(3.7

)%

 

 

 

 

 

 

 

 

 

EBITDA

 

 

11.5

 

 

 

27.6

 

 

(58.4

)%

as a percent of revenue

 

 

6.6

%

 

 

11.0

%

 

(440) bps

 

 

 

 

 

 

 

Total Company-owned Salons

 

 

2,551

 

 

 

3,822

 

 

(33.3

)%

as a percent of total Company-owned and Franchise salons

 

 

36.4

%

 

 

47.6

%

 

 

 

(1) Variances calculated on amounts shown in millions may result in rounding differences.

First quarter revenue for the Company-Owned salon segment decreased $75.3 million, or 30.2%, versus the prior year to $174.5 million. The year-over-year decline in revenue was driven by the decrease of a net 1,143 salons sold and converted to the Company’s asset-light franchise portfolio over the past 12 months, the closure of 147 unprofitable salons over the past 12 months and by a 2.0% decline in Company-owned same-store sales.

First quarter EBITDA of $11.5 million decreased $16.1 million, or 58.4% versus the same period last year driven primarily by the elimination of EBITDA that had been generated in the prior year period from the net 1,143 company-owned salons that were sold and converted to the Company’s asset-light franchise portfolio over the past 12 months and strategic investments in marketing and advertising, including the launch of a new Supercuts advertising campaign, partially offset by management cost-saving initiatives.

Other Key Events

  • The Company repurchased 1.5 million common shares, or approximately 4% of its total common stock, at an average price of $17.50 per share for a total of $26.3 million.
  • The Company continued its efforts to eliminate non-essential, non-strategic G&A expense during the quarter reducing G&A costs by approximately $7 million versus the prior year quarter or $28 million on an annualized run-rate basis.
  • During the first quarter, the Company reinvigorated its Supercuts® creative approach to marketing by launching a new and innovative Supercuts multi-channel brand campaign and World Series promotion.
  • The Company continues to make forward leaning technology investments through its OpensalonTM platform which now allows customers to seamlessly check-in for salon services over their Amazon Alexa device, Google and Facebook Messenger. The Company believes its Opensalonplatform complements its branded mobile apps.
  • In an effort to continue to drive increased stylist engagement and retention, the Company launched its industry leading digital stylist training “Education PlaygroundTM” on a web-based platform.
  • During the quarter, the Company continued to invest in the refresh, expansion and relaunch of its owned merchandise brands.
  • The Company has executed a purchase agreement for the Company’s headquarters and anticipates it will close on the transaction during the second fiscal quarter.
  • The Company continues to make meaningful progress on its previously disclosed effort to convert to a fully franchised model. During the quarter, it sold and transferred 545 company-owned salons to its asset-light franchise portfolio. In addition, the Company has a pipeline of approximately 900 salons to be transitioned in various stages of negotiation. The pipeline represents approximately 42% of the company-owned portfolio when taking into account expected closures of approximately 375 salon locations. The impact of the transactions closed in the quarter is as follows:

 

 

Three Months Ended

September 30,

 

Increase

(Dollars in thousands)

 

2019

 

2018

 

Salons sold to franchisees

 

 

545

 

 

 

124

 

 

 

421

 

Cash proceeds received in quarter

 

$

37,945

 

 

$

12,422

 

 

$

25,523

 

 

 

 

 

 

 

 

Gain on sale of venditions, excluding goodwill derecognition

 

$

26,223

 

 

$

7,132

 

 

$

19,091

 

Non-cash goodwill derecognition

 

 

(32,083

)

 

 

(11,092

)

 

 

20,991

 

Loss on sale of salon assets to franchisees, net

 

$

(5,860

)

 

$

(3,960

)

 

$

(1,900

)

Adoption of New Accounting Standard

On July 1, 2019, the Company adopted amended lease guidance. The guidance was adopted on a prospective basis and results in an increase in franchise revenue and franchise rent expense. There is no impact on operating income.

Non-GAAP reconciliations:

For GAAP to non-GAAP reconciliations, please refer to attached section titled “Non-GAAP Reconciliations.” A complete reconciliation of reported earnings to adjusted earnings is included in this press release and is available on the Company’s website at www.regiscorp.com.

Earnings Webcast

Regis Corporation will host a conference call via webcast discussing first quarter results today, October 29, 2019, at 9 a.m., Central time. Interested parties are invited to participate in the live webcast by logging on to www.regiscorp.com or participate via telephone by dialing (800) 353-6461 and entering access code 3231103. A replay of the presentation will be available later that day. The replay phone number is (888) 203-1112, access code 3231103.

About Regis Corporation

Regis Corporation (NYSE:RGS) is a leader in beauty salons and cosmetology education. As of September 30, 2019, the Company franchised, owned or held ownership interests in 7,092 worldwide locations. Regis’ franchised and corporate locations operate under concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters® and First Choice Haircutters®. Regis maintains an ownership interest in Empire Education Group in the U.S. For additional information about the Company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Information section of the corporate website at www.regiscorp.com.

This press release contains or may contain “forward-looking statements” within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management’s best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, “may,” “believe,” “project,” “forecast,” “expect,” “estimate,” “anticipate,” and “plan.” In addition, the following factors could affect the Company’s actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include the continued ability of the Company to implement its strategy, priorities and initiatives; our and our franchisee’s ability to attract, train and retain talented stylists; financial performance of our franchisees; acceleration of sale of salons to franchisees; if our capital investments in improving technology do not achieve appropriate returns; our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, employees, vendors or Company information; The Beautiful Group’s inability to operate its salons successfully, as well as maintain adequate working capital; the ability of the Company to maintain a satisfactory relationship with Walmart; marketing efforts to drive traffic; changes in regulatory and statutory laws including increases in minimum wages; our ability to maintain and enhance the value of our brands; premature termination of agreements with our franchisees; reliance on information technology systems; reliance on external vendors; consumer shopping trends and changes in manufacturer distribution channels; competition within the personal hair care industry; changes in tax exposure; changes in healthcare; changes in interest rates and foreign currency exchange rates; failure to standardize operating processes across brands; financial performance of Empire Education Group; the continued ability of the Company to implement cost reduction initiatives; compliance with debt covenants; changes in economic conditions; changes in consumer tastes and fashion trends; exposure to uninsured or unidentified risks; reliance on our management team and other key personnel or other factors not listed above. Additional information concerning potential factors that could affect future financial results is set forth under Item 1A on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements on Schedule 14A.

REGIS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)

(Dollars in thousands, except share data)

 

 

 

September 30,

2019

 

June 30,

2019

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

58,902

 

$

70,141

Receivables, net

 

 

28,724

 

 

30,143

Inventories

 

 

74,634

 

 

77,322

Other current assets

 

 

32,194

 

 

33,216

Total current assets

 

 

194,454

 

 

210,822

 

 

 

 

 

Property and equipment, net

 

 

71,442

 

 

78,090

Goodwill

 

 

313,251

 

 

345,718

Other intangibles, net

 

 

8,416

 

 

8,761

Right of use asset

 

 

930,784

 

Other assets

 

 

33,094

 

 

34,170

Non-current assets held for sale

 

 

5,276

 

 

5,276

Total assets

 

$

1,556,717

 

$

682,837

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

53,219

 

$

47,532

Accrued expenses

 

 

62,241

 

 

80,751

Short-term lease liability

 

 

161,407

 

Total current liabilities

 

 

276,867

 

 

128,283

 

 

 

 

 

Long-term debt, net

 

 

90,000

 

 

90,000

Long-term lease liability

 

 

781,134

 

Long-term financing liabilities

 

 

28,719

 

 

28,910

Other noncurrent liabilities

 

 

96,258

 

 

111,399

Total liabilities

 

 

1,272,978

 

 

358,592

Commitments and contingencies

 

 

 

 

Shareholders’ equity:

 

 

 

 

Common stock, $0.05 par value; issued and outstanding 35,548,036 and 36,869,249 common shares at September 30, 2019 and June 30, 2019, respectively

 

 

1,777

 

 

1,843

Additional paid-in capital

 

 

20,880

 

 

47,152

Accumulated other comprehensive income

 

 

8,939

 

 

9,342

Retained earnings

 

 

252,143

 

 

265,908

 

 

 

 

 

Total shareholders’ equity

 

 

283,739

 

 

324,245

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

1,556,717

 

$

682,837

REGIS CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)

For The Three Months Ended September 30, 2019 and 2018

(Dollars and shares in thousands, except per share data amounts)

 

 

 

Three Months Ended

September 30,

 

 

2019

 

2018

Revenues:

 

 

 

 

Service

 

$

141,941

 

 

$

207,848

 

Product

 

 

45,656

 

 

 

57,591

 

Royalties and fees

 

 

28,017

 

 

 

22,396

 

Franchise rental income

 

 

31,424

 

 

 

 

 

247,038

 

 

 

287,835

 

Operating expenses:

 

 

 

 

Cost of service

 

 

90,482

 

 

 

121,497

 

Cost of product

 

 

26,327

 

 

 

32,181

 

Site operating expenses

 

 

32,942

 

 

 

36,821

 

General and administrative

 

 

40,625

 

 

 

47,727

 

Rent

 

 

24,264

 

 

 

35,978

 

Franchise rent expense

 

 

31,424

 

 

Depreciation and amortization

 

 

9,380

 

 

 

10,202

 

TBG mall location restructuring

 

 

1,500

 

 

Total operating expenses

 

 

256,944

 

 

 

284,406

 

 

 

 

 

 

Operating (loss) income

 

 

(9,906

)

 

 

3,429

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

Interest expense

 

 

(1,439

)

 

 

(1,006

)

Loss from sale of salon assets to franchisees, net

 

 

(5,860

)

 

 

(3,960

)

Interest income and other, net

 

 

171

 

 

 

360

 

 

 

 

 

 

Loss from continuing operations before income taxes

 

 

(17,034

)

 

 

(1,177

)

 

 

 

 

 

Income tax benefit

 

 

2,856

 

 

 

714

 

 

 

 

 

 

Loss from continuing operations

 

 

(14,178

)

 

 

(463

)

 

 

 

 

 

Income (loss) from discontinued operations, net of income taxes

 

 

373

 

 

 

(264

)

 

 

 

 

 

Net loss

 

$

(13,805

)

 

$

(727

)

 

 

 

 

 

Net loss per share:

 

 

 

 

Basic and Diluted:

 

 

 

 

Loss from continuing operations

 

$

(0.39

)

 

$

(0.01

)

Income (loss) from discontinued operations

 

 

0.01

 

 

 

(0.01

)

Net loss per share (1)

 

$

(0.38

)

 

$

(0.02

)

 

 

 

 

 

Weighted average common and common equivalent shares outstanding:

 

 

 

 

Basic and Diluted

 

 

36,249

 

 

 

44,730

 

 

(1) Total is a recalculation; line items calculated individually may not sum to total due to rounding.

REGIS CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited)

For The Three Months Ended September 30, 2019 and 2018

(Dollars in thousands)

 

 

 

Three Months Ended

September 30,

 

 

2019

 

2018

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(13,805

)

 

$

(727

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Non-cash adjustments related to discontinued operations

 

 

(470

)

 

 

(427

)

Depreciation and amortization

 

 

7,863

 

 

 

8,371

 

Deferred income taxes

 

 

(3,821

)

 

 

(875

)

Loss on sale of salon assets to franchisees, net

 

 

5,860

 

 

 

3,960

 

Salon asset impairments

 

 

1,517

 

 

 

1,831

 

Stock-based compensation

 

 

1,807

 

 

 

2,335

 

Amortization of debt discount and financing costs

 

 

69

 

 

 

69

 

Other items affecting earnings

 

 

(23

)

 

 

352

 

Changes in operating assets and liabilities, excluding the effects of asset sales

 

 

(12,477

)

 

 

(32,053

)

Net cash used in operating activities

 

 

(13,480

)

 

 

(17,164

)

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Capital expenditures

 

 

(4,899

)

 

 

(11,258

)

Proceeds from sale of salon assets to franchisees

 

 

37,945

 

 

 

12,422

 

Costs associated with sale of salon assets to franchisees

 

 

(1,019

)

 

Proceeds from company-owned life insurance policies

 

 

 

24,617

 

Net cash provided by investing activities

 

 

32,027

 

 

 

25,781

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Repurchase of common stock

 

 

(28,247

)

 

 

(19,337

)

Taxes paid for shares withheld

 

 

(1,808

)

 

 

(1,918

)

Sale and leaseback payments

 

 

(248

)

 

Net cash used in financing activities

 

 

(30,303

)

 

 

(21,255

)

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

3

 

 

 

388

 

 

 

 

 

 

Decrease in cash, cash equivalents and restricted cash

 

 

(11,753

)

 

 

(12,250

)

 

 

 

 

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 Beginning of period

 

 

92,379

 

 

 

148,774

 

 End of period

 

$

80,626

 

 

$

136,524

 

REGIS CORPORATION

Same-Store Sales

SYSTEM-WIDE SAME-STORE SALES (1):

 

 

 

For the Three Months Ended

 

 

September 30, 2019

 

September 30, 2018

 

 

Service

 

Retail

 

Total

 

Service

 

Retail

 

Total

SmartStyle

 

%

 

(7.7

)%

 

(2.2

)%

 

1.5

%

 

(0.2

)%

 

1.0

%

Supercuts

 

0.8

 

 

(7.7

)

 

0.2

 

 

1.3

 

 

(5.3

)

 

0.8

 

Signature Style

 

(1.2

)

 

(5.5

)

 

(1.7

)

 

1.1

 

 

(3.0

)

 

0.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

(0.1

)%

 

(7.1

)%

 

(1.1

)%

 

1.2

%

 

(2.1

)%

 

0.8

%

 

(1) System-wide same-store sales are calculated as the total change in sales for system-wide company-owned and franchise locations for more than one year that were open on a specific day of the week during the current period and the corresponding prior period. Franchise salons that do not report daily sales are excluded from same-store sales. Locations relocated within a one-mile radius are included in same-store sales as they are considered to have been open in the prior period. System-wide same-store sales are calculated in local currencies to remove foreign currency fluctuations from the calculation.

FRANCHISE SAME-STORE SALES (1):

 

 

For the Three Months Ended

 

 

September 30, 2019

 

September 30, 2018

 

 

Service

 

Retail

 

Total

 

Service

 

Retail

 

Total

SmartStyle

 

(3.6

)%

 

(18.5

)%

 

(7.5

)%

 

2.7

%

 

(13.3

)%

 

(2.1

)%

Supercuts

 

1.6

 

 

(7.0

)

 

1.1

 

 

1.6

 

 

(4.9

)

 

1.2

 

Signature Style

 

0.4

 

 

(7.9

)

 

(0.7

)

 

2.6

 

 

(5.4

)

 

1.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

0.9

%

 

(10.2

)%

 

(0.1

)%

 

1.9

%

 

(5.7

)%

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Franchise same-store sales are calculated as the total change in sales for salons that have been a franchise location for more than one year that were open on a specific day of the week during the current period and the corresponding prior period. Quarterly franchise same-store sales are the sum of the franchise same-store sales computed on a daily basis. Franchise salons that do not report daily sales are excluded from same-store sales. Locations relocated within a one-mile radius are included in same-store sales as they are considered to have been open in the prior period. Franchise same-store sales are calculated in local currencies to remove foreign currency fluctuations from the calculation.

COMPANY-OWNED SAME-STORE SALES (2):

 

 

For the Three Months Ended

 

 

September 30, 2019

 

September 30, 2018

 

 

Service

 

Retail

 

Total

 

Service

 

Retail

 

Total

SmartStyle

 

0.7

%

 

(5.9

)%

 

(1.2

)%

 

1.4

%

 

0.3

%

 

1.1

%

Supercuts

 

(3.4

)

 

(10.0

)

 

(3.9

)

 

0.7

 

 

(5.8

)

 

0.2

 

Signature Style

 

(2.3

)

 

(3.3

)

 

(2.4

)

 

0.4

 

 

(1.2

)

 

0.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

(1.2

)%

 

(5.6

)%

 

(2.0

)%

 

0.8

%

 

(0.9

)%

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Company-owned same-store sales are calculated as the total change in sales for company-owned locations that were open on a specific day of the week during the current period and the corresponding prior period. Quarterly company-owned same-store sales are the sum of the company-owned same-store sales computed on a daily basis. Locations relocated within a one-mile radius are included in same-store sales as they are considered to have been open in the prior period. Company-owned same-store sales are calculated in local currencies to remove foreign currency fluctuations from the calculation.

Contacts

REGIS CORPORATION:
Andrew Lacko

investorrelations@regiscorp.com

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