Supercuts parent Regis narrows 2Q loss
Supercuts parent Regis narrows 2Q loss; adjusted results beat Wall Street expectations
EDINA, Minn. (AP) -- Regis Corp., the owner of Supercuts and other hair salons, said Thursday that its second-quarter loss narrowed from a year earlier as its operating costs fell.
The company's adjusted results topped Wall Street expectations, and its shares rose.
The company said it lost $12.3 million, or 22 cents per share, in the three months ending Dec. 31. That compares to a loss of $57.4 million in the same quarter a year ago.
Excluding special charges, the company said its earnings rose to 30 cents per share in the second quarter from 27 cents in the same period a year ago.
The results topped Wall Street's expectations of 13 cents per share, according to FactSet.
Revenue fell 4 percent to $506.2 million in the second quarter from $526.1 million a year earlier.
That beat Wall Street's expectations $504.3 million in revenue, according to FactSet.
Total operating expenses fell 3.3 percent from $497.4 million from $514.2 million.
Sales at stores open at least a year fell 1.9 percent in the second quarter. That compares with a drop of 3.3 percent a year ago. Sales at stores open at least a year is a key measure of a retailer's health, because they exclude revenue at stores that recently opened or closed.
The company said that its sales at stores open a year were hurt by about 30 basis points due to lost business from Superstorm Sandy.
Regis CEO Dan Hanrahan said in a press release that the company has increased salon hours and has seen an increase to traffic, especially in its Supercuts and SmartStyle stores.
Revenue at its Supercuts salons rose slightly to $85.1 million from $85 million. Revenue rose 1.1 percent to $127.4 million from $126 million at its SmartStyle salon.
The company's Regis salons saw the biggest drop in revenue, nearly 9 percent to $95.4 million from $104.6 million. Its MasterCuts and Promenade salons saw declines in revenue of more than 6 percent.
Shares of the Edina, Minn.-based company rose 61 cents, or 3.6 percent, to $17.38 in morning trading Thursday.
