Regis Corp Q4 revenue slips on lower franchise rental income
Regis Corp Q4 revenue slips on lower franchise rental income
Overview
US haircare salon operator's fiscal Q4 revenue fell 7% yr/yr to $56 mln
Adjusted EPS for fiscal Q4 rose to $1.04 from $0.74 yr/yr
Company says lower franchise rental income and salon count drove revenue decline
Outlook
Regis says increasing traffic and strengthening brands are key priorities for FY2027
Company is evaluating refinancing alternatives to reduce cost of debt
Result Drivers
FRANCHISE RENTAL INCOME - Q4 revenue decline was primarily driven by lower non-margin franchise rental income as a result of fewer salons and franchisees signing their own leases
SALON COUNT - Lower franchise and company-owned salon counts contributed to declines in revenue and royalties
UNPROFITABLE SALON CLOSURES - Company-owned segment profit improved due to closures of unprofitable salons, reducing rent and salon expenses
Company press release: ID:nBw2Zn9Wja
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $56 mln | $53,000 (1 Analyst) |
Q4 Adjusted EPS | Beat | $1.04 | $0.17 (1 Analyst) |
Q4 EPS |
| $1.51 |
|
Q4 Net Income |
| $4.40 mln |
|
Q4 Net Income continuing operations |
| $4.40 mln |
|
Q4 Operating Income |
| $6.60 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 53.8% above its August 31 closing price of $27.30
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(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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