Regis Q1 revenue falls on lower franchise and salon sales

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

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

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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.)