Hair care industry leader Regis service business slow
11 Jan '08
2 min read
Regis Corporation reported consolidated revenues increased 3.8 percent in the second quarter of 2008 to a record $682 million, compared to $657 million a year ago. 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. Second quarter total same-store sales decreased 0.8 percent.
“The momentum we have seen in the last nine months in 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.
We have a great business model and, over time, our customer visits will normalize. Until then, we will continue to focus on increasing our average ticket and, more specifically, implementing price increases.”
Despite second quarter same-store sales falling below the low end of the previously issued guidance range, the Company expects to report earnings per diluted share at the low end of the previously issued guidance range of $0.51 to $0.57 per diluted share.
Second quarter earnings results will benefit 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 of its salon safety programs.
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