Regis 2Q loss widens, results miss Street's view

|
News,Business

MINNEAPOLIS (AP) — Hair salon operator Regis said Monday that its fiscal second-quarter loss widened, hindered in part by a drop in a key sales barometer, charges and increased expenses.

Regis said its results were also hurt by higher labor costs, increased health insurance costs and increased depreciation expense. The company was also more promotional in the period and saw a bigger drop in traffic than the prior-year period.

Its performance fell short of analysts' estimates.

The company, whose salons include Supercuts, MasterCuts and others, lost $110 million, or $1.95 per share, for the three months ended Dec. 31. That compares with a loss of $12.3 million, or 22 cents per share, a year ago.

Removing a goodwill impairment charge and other items, Regis Corp. lost 4 cents per share.

Analysts polled by FactSet expected a profit of 2 cents per share.

Revenue fell 8 percent to $468.4 million from $506.2 million. Wall Street predicted $480.2 million.

Sales at salons open at least a year dropped 6.2 percent. This figure excludes results from locations recently opened or closed. Regis said the sales performance lowered its adjusted profit by about 13 cents per share.

Regis shares finished at $13.42 on Friday. They have fallen more than 22 percent in the past year.

View article comments Leave a comment