Regis 1Q falls, hurt by costs of closing stores

Regis 1st-quarter net income declines, but adjusted results beat expectations

• On 3:18 pm EDT, Thursday October 29, 2009

NEW YORK (AP) -- Hair care company Regis Corp. said Thursday its fiscal first-quarter profit fell 46 percent, hurt by costs related to closing U.K. stores.

But adjusted results beat analyst expectations and shares rose 5.2 percent.

Quarterly profit fell to $7.8 million, or 14 cents per share, from $14.5 million, or 34 cents per share, last year. Results reflect the fact that there were 26 percent more shares outstanding during the current year quarter, 54.2 million from 43.1 million in 2008.

Excluding charges related to closing U.K. stores and a tax benefit, net income totaled 30 cents per share.

Revenue edged down 1 percent to $605.6 million from $613.5 million.

Analysts polled by Thomson Reuters, on average, predicted a profit of 22 cents per share on revenue of $597.8 million.

Sales in stores open at least one year, considered a key retail metric, fell 4.5 percent.

Shares rose 83 cents to $16.73 during afternoon trading. The stock has traded between $8.21 and $20.36 over the past year.