Regis Q1 revenue falls on lower franchise and salon sales
RGS•Regis reported fiscal first-quarter revenue of $54.30 million, down year over year and below the $56.42 million estimate, while adjusted EPS fell to $0.48. It generated positive operating cash and repaid $7.9 million of debt.
1. Quarterly results
Regis said lower franchise revenue and company-owned salon sales drove its fiscal first-quarter revenue decline. Revenue was $54.30 million; adjusted EPS was $0.48, reported EPS was $0.18, net income was $500,000 and operating income was $5.30 million.
2. Drivers and outlook
The company attributed lower franchise revenue to reduced non-margin franchise rental income and fewer franchise salons, and lower company-owned salon revenue primarily to closures of underperforming salons. Operating income included a $2.5 million accrual related to a Department of Justice inquiry concerning a PPP loan Alline obtained before its acquisition. Regis said it expects to keep generating cash and reducing debt ahead of refinancing in 2027.
