Regis Corporation (RGS) Reports Q3 Loss of $0.18, Miss on Revenue

Regis Corporation (NYSE: RGS) reported Q3 EPS of ($0.18). Revenue for the quarter came in at $412.6 million versus the consensus estimate of $424.4 million.

• Sales of $412.6 million, a decline of $30.0 million. Same-store sales decreased 2.9% with same-store service sales decreasing 2.9% and same-store product sales decreasing 3.0%.
  • The Company estimates the shift of Easter from March of last year to April of this year negatively impacted same-store sales by approximately 50 basis points during the quarter.
  • Same-store sales for Value concepts (excluding MasterCuts) declined 1.7%.
    • 1.2% decrease after adjusting for the Easter shift.
  • Same-store sales for mall concepts (Premium and MasterCuts) declined 6.1%.
    • 5.5% decrease after adjusting for the Easter shift.
• Operating loss of $12.8 million compared to a gain of $5.6 million in the prior year quarter.
  • Current year operating loss includes severance and other discrete items totaling $10.2 million.
  • Operating loss, as adjusted, of $2.6 million compared to a gain of $4.8 million in the prior year quarter.
• Net loss of $18.5 million or $0.40 per diluted share.
  • Includes ($0.22) per diluted share unfavorable impact due to the deferred tax valuation allowance on income tax expense.
• EBITDA, as adjusted, of $14.8 million compared to $22.9 million in the prior year quarter.
  • Decrease of ($4.6) million from same-store sales declines.
  • Decrease of ($3.5) million mainly from minimum wage and inflation, lower stylist productivity, lapping certain benefits in the prior year quarter, royalties and fees, and planned strategic investments, partly offset by cost savings, lower incentive compensation and reduced salon counts.
• Diluted EPS, as adjusted, was ($0.18) compared to ($0.06) in the prior year quarter.
  • Excluding the impact of the deferred tax valuation allowance, Diluted EPS, as adjusted, declined $0.11 per share compared to the prior year period. Primary drivers of this decrease were the EBITDA impacts listed above.

For earnings history and earnings-related data on Regis Corporation (RGS) click here.

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