Regis 4Q adj. results top Wall Street's view
MINNEAPOLIS (AP) — Regis posted bigger losses for the fourth quarter, a period in which it recorded a hefty impairment charge and higher expenses. Adjusted for some one-time items though, the hair salon operator topped Wall Street expectations.
The owner of Supercuts and other chains reported on Thursday that it lost $63.6 million, or $1.11 per share, for the three months ended June 30. That compares with a loss of $16.4 million, or 29 cents per share, a year earlier.
The current quarter included an impairment charge of $67.7 million.
Removing the charge related to its Regis salon division and other items, earnings rose to 40 cents per share from 37 cents per share.
Analysts polled by FactSet expected earnings of 31 cents per share.
Total operating expenses climbed to $612.1 million from $584.8 million.
Revenue declined 4 percent to $568.2 million from $592 million, hurt by lower revenue from its North American and international salons.
Wall Street forecast higher revenue of $569.4 million.
One bright spot was that revenue for its hair restoration centers improved, rising 4.3 percent in the quarter.
Revenue at stores open at least a year dropped 3 percent. This figure is a key indicator of a retailer's health because it excludes results from stores recently opened or closed. Revenue at hair restoration centers open at least a year climbed 4.4 percent.
For the year, Regis Corp. lost $114.1 million, or $2 per share. In the previous year the company lost $8.9 million, or 16 cents per share.
Adjusted earnings were $1.30 per share.
Annual revenue dropped 3 percent to $2.27 billion from $2.33 billion.
Revenue at stores open at least a year fell 3.1 percent.
Regis owned, franchised or held ownership interests in approximately 12,600 worldwide locations at quarter's end.