Regis 1Q adj. profit surprises Wall Street

Regis 1Q adj. profit surprises Wall Street, revenue falls but beats analysts' expectations

Associated Press

NEWS: The hair salon operator Regis fell to loss during the first quarter as comparable store sales fell and product sales declined. But revenue and profit number, adjusted for one-time items, beat Wall Street expectations.

The stock climbed more than 4 percent in early trading.

DETAILS: The company, which runs Supercuts, MasterCuts and other salons, said that sales at locations open at least a year fell 5.4 percent. This figure is a key gauge of a retailer's health because it excludes results from locations recently opened or closed. The average bill at these locations climbed 1.8 percent, but the number of customers dropped 7.2 percent.

NUMBERS: For the period ended Sept. 30, Regis Corp. lost $136,000, or breakeven results per share. That compares with a profit of $38.4 million, or 59 cents per share, a year earlier.

The company said that its same-store sales decline lowered its quarterly results by about 12 cents per share.

Excluding certain items, earnings were 1 cent per share.

Analysts surveyed by FactSet expected a loss of 6 cents per share.

Revenue declined 7 percent to $468.6 million from $505.4 million as it made less money from hair salon services and had lower product sales. This still managed to beat Wall Street's estimate of $461.6 million.

STOCK: The shares rose 64 cents to $14.84.

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