Regis (NASDAQ:RGS) Announces Quarterly Earnings Results, Misses Estimates By $0.20 EPS

Key Points

• Regis reported quarterly EPS of $0.48, missing the $0.68 consensus estimate by $0.20; revenue of $54.34 million also came in below expectations of $56.42 million.
• Revenue fell 7.8% year over year, system traffic declined 3.1%, and Regis recorded 34 franchise salon closures. The company generated $7.7 million in adjusted EBITDA and repaid $7.9 million of debt, but postponed refinancing until lenders see further progress.
• Supercuts Choice Booking pilots generated traffic 3%–6% above control salons and cut online booking dead ends by 59%; Regis plans a broader rollout.

Regis (NASDAQ:RGS - Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.48 earnings per share for the quarter, missing analysts' consensus estimates of $0.68 by ($0.20), FiscalAI reports. The business had revenue of $54.34 million during the quarter, compared to analysts' expectations of $56.42 million. Regis had a net margin of 3.09% and a return on equity of 4.10%. During the same quarter in the prior year, the firm posted $0.49 earnings per share.

Here are the key takeaways from Regis' conference call:

• Regis generated $7.7 million in adjusted EBITDA and $2.6 million in operating cash flow, repaid $7.9 million of debt, and recorded its eighth consecutive quarter of positive cash generation. However, revenue fell 7.8% year over year and adjusted EBITDA dipped from $8.0 million.
• Supercuts Choice Booking pilots delivered traffic 3%–6% above control salons and reduced online booking dead ends by 59%; Regis plans a full Supercuts rollout with seven-day advance booking as the standard.
• System traffic declined 3.1%, while company-owned salon traffic fell 9.5% and sales declined 1.1%; management called the results unacceptable and announced a senior leadership change and recovery efforts.
• Regis reported 34 franchise salon closures in Q1 and expects fiscal 2027 closures to remain around fiscal 2026 levels, despite efforts to support at-risk salons and facilitate ownership transfers.
• The company postponed refinancing plans after prospective lenders said they wanted to see additional quarters of progress; Regis expects to return to debt markets in early 2027, ahead of a scheduled decline in its call premium in June.

Regis Price Performance

NASDAQ RGS traded down $0.02 on Friday, hitting $23.99. The stock had a trading volume of 16,185 shares, compared to its average volume of 3,719. The firm has a 50-day moving average of $28.55 and a 200-day moving average of $26.59. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.60 and a current ratio of 0.62. Regis has a 52-week low of $19.31 and a 52-week high of $32.00. The company has a market capitalization of $59.98 million, a price-to-earnings ratio of 10.89 and a beta of 1.44.

Analyst Ratings Changes

Separately, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Regis in a report on Wednesday, August 26th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $42.00.

About Regis

Regis Corporation NASDAQ: RGS is a hair care and salon company that operates primarily as a franchisor in the United States and Canada. Its salon network provides haircutting, hairstyling, hair coloring, waxing and related personal-care services, along with professional hair care products.

The company's portfolio includes well-known salon brands such as Supercuts, SmartStyle, Cost Cutters, First Choice Haircutters and Roosters Men's Grooming Center. These brands serve a broad customer base through locations operated by franchisees, as well as a limited number of company-operated salons and other affiliated locations.

Founded in Minneapolis in 1922, Regis expanded through the development and acquisition of salon brands and has historically operated one of the largest networks of hair salons in North America.

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