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Regis Q1 revenue falls on lower franchise and salon sales

By Reuters News


Overview

  • US haircare salon operator's fiscal Q1 revenue fell yr/yr on lower franchise and salon sales

  • Adjusted EPS for fiscal Q1 declined yr/yr

  • Company generated positive cash from operations and repaid $7.9 mln in debt


Outlook

  • Regis expects to continue generating cash and reducing debt ahead of refinancing in 2027

  • Company is taking targeted actions to increase traffic across brands and drive sustainable growth


Result Drivers

  • FRANCHISE REVENUE DECLINE - Co said lower non-margin franchise rental income and fewer franchise salons drove Q1 revenue decline

  • SALON CLOSURES - Lower company-owned salon revenue was primarily due to closures of underperforming salons

  • ALLINE PPP LOAN ACCRUAL - Operating income was reduced by a $2.5 mln accrual related to a DOJ inquiry concerning a PPP loan obtained by Alline prior to its acquisition


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Miss

$54.30 mln

$56.42 mln (1 Analyst)

Q1 Adjusted EPS

$0.48

Q1 EPS

$0.18

Q1 Net Income

$500,000

Q1 Operating Income

$5.30 mln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the personal services peer group is "buy"

  • Wall Street's median 12-month price target for Regis Corp is $42.00, about 32.2% above its November 4 closing price of $31.77


Reuters Recommended Reads

  • Nov 4 - McDonald's Q3 revenue misses estimates on weaker US comparable sales

  • Nov 4 - Applebee's owner Dine Brands beats Q3 sales estimates on value, menu innovation

  • Nov 4 - Dutch Bros Q3 revenue slightly beats estimates after new shop openings


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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