RCI Hospitality (RICK) Posts Preliminary Q1 Results, Sales Up
RCI Hospitality Holdings, Inc. RICK provided an update on its business for the first quarter of fiscal 2024. The company stated that the results are preliminary and subject to final closing. The company expects to release its first-quarter fiscal 2024 results tentatively before Feb 9, 2024.
Preliminary Revenue Results
During the fiscal first quarter, the company reported total sales of $73.3 million, reflecting a rise of 5.9% year over year. Acquisitions and new locations mainly drove the upside. During the quarter, the company’s Same-Store sales declined 9.8% year over year. Although same-store sales declined year over year, the company reported an improving trend (over the quarter), backed by strength in Nightclubs performance.
During the quarter, sales from Nightclubs came in at $60.6 million, rising 8.4% year over year. The upside was primarily backed by contributions from FY23 acquisitions ($8.9 million) and reformatted clubs ($0.3 million). However, this was partially offset by a decline in same-store sales (7.2% year over year) and lower contributions from closed clubs ($0.6 million).
Sales from Bombshells restaurants in the fiscal first quarter came in at $12.7 million, down 4.6% from the year-ago quarter’s levels. The downside was mainly due to a fall in same-store sales (down 20.3% year over year). However, this was partially offset by the contributions (of $2.1 million) from the fiscal 2023 acquisitions (of Bombshells San Antonio and Cherry Creek Food Hall) and the opening of a new Bombshells venue in the Houston suburb of Stafford.
Other Updates
Management shared a positive outlook derived from insights gathered during visits to clubs in Houston, Colorado, Miami and New York (in December 2023). It believes that the most challenging phase of the same-store sales decline, impacted by uncertain macroeconomic conditions and challenging year-over-year comparisons, may have ended. Overall, there was a noticeable increase in optimism compared with earlier observations from late summer.
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Shares of the company have gained 12.9% in the past three months compared with the industry’s 11.3% growth.
Zacks Rank & Key Picks
RCI Hospitality currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
Virco Mfg. Corporation VIRC sports a Zacks Rank #1 (Strong Buy). VIRC has a trailing four-quarter earnings surprise of 188.6% on average. VIRC’s shares have surged 149.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VIRC’s 2024 sales and earnings per share (EPS) indicates a rise of 15.7% and 32.4%, respectively, from the year-ago period’s levels.
Stride, Inc. LRN carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 44.3% on average. Shares of LRN have surged 75.2% in the past year.
The Zacks Consensus Estimate for LRN’s 2024 sales and EPS indicates a rise of 9.1% and 34.7%, respectively, from the year-ago period’s levels.
American Public Education, Inc. APEI sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 23.2% on average. Shares of APEI have declined 15.3% in the past year.
The Zacks Consensus Estimate for APEI’s 2024 sales and EPS indicates a rise of 2.5% and 115.8%, respectively, from the year-ago period’s levels.
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