Regis reports Q2 2008 results

22 Jan '08

3 min read

Regis Corporation reported financial results for its fiscal second quarter ending December 31, 2007. Net income for the quarter was $22.6 million, or $0.51 per diluted share, which came in at the low end of the Company's previously issued guidance of $0.51 to $0.57 per diluted share.

Second quarter earnings results benefited from an unplanned adjustment to prior years' workers' compensation reserves of approximately $0.05 per diluted share, the result of the Company's continued success with its salon safety programs.

On January 11, 2008, the Company reported revenues for the second quarter ended December 31, 2007 increased four percent to $682 million versus $657 million in second quarter of fiscal 2007. Consolidated same-store sales decreased 0.8 percent for the quarter.

Deconsolidation of the beauty schools reduced revenue in the quarter by approximately $17 million. Absent the impact of the school deconsolidation, consolidated revenues for the quarter would have increased 6.5 percent.

“The momentum we have seen in the last nine months around our service business slowed in the quarter. Like many retailers, we had a disappointing holiday shopping season and, as a result, our quarterly same-store sales came in below our expectations,” commented Paul D. Finkelstein, Chairman and Chief Executive Officer.

“Today's casual lifestyle continues to have a lingering impact on fashion and salon visitation patterns. However, ours is a very predictable business and, in our 85 year history, we've never experienced an annual same-store sales decrease.

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