A Challenging Year For Regis Corp.
• Regis Corp. got clipped in fiscal 2012. For the year, sales fell 2.2% to $2.3 billion. Same-store sales declined 3.1%; however, net income rose 13% to $80.5 million. For the fourth quarter, sales slipped 4% to $568.2 million. In North American salons, revenues fell 4.7% to $487.9 million.
Commenting on fiscal 2012, Dan Hanrahan, president and chief executive officer, said, “Regis faced a number of challenges in the past year, but reported operational earnings per diluted share of $1.30, which was up 11.4% from fiscal 2011. We have lots of work ahead of us. The previously announced sale of non-core assets will allow us to focus on our core business.
“The gain in fourth quarter operational earnings amidst a negative sales trend reflects Regis’ ongoing commitment to controlling costs, managing our business more efficiently and a decrease in the effective income tax rate,” he added.
“I have been on the job for less than three weeks and I believe there is significant opportunity to improve our performance. We are committed to improving the salon experience for our guests, hiring and retaining the best stylists, continuing our efforts to simplify our operating model and effectively leveraging our scale as North America’s largest salon company.”
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