Regis Reports Decline in Second Quarter

2009-01-12 | 07:23

Sales slide 5.4%

Regis Corp. reported 5.4% decline in same store sales for the second quarter versus a 0.8% slip in the same period a year ago, missing the firm’s own projection.

In the fall, the Minneapolis-based salon chain had projected same-store sales for the three months ended Dec. 31 would come in at between a decline of 1% and an increase of 1%.

Total revenues also declined, dropping 4% to $655.1 million from $682.2 million in the second quarter of 2007. Analysts expected sales of $694.9 million, according to Yahoo Finance.

Deconsolidation of Regis’ European franchise salon operations reduced revenue in the quarter by approximately $17 million, the company stated, adding that excluding the impact of the European deconsolidation, revenues for the quarter would have decreased 1.6%.

Paul D. Finkelstein, chairman and chief executive officer, said, “Operationally, we will be profitable in the second quarter and for the full fiscal year.”

The company runs salons and hair restoration centers. On the plus side, its North American salon business was up slightly to $579.2 million, a 0.5% gain from $576.1 in the year-ago period.

International salon sales, however, dropped 43.5% to $41.3 million from $73.1 million a year ago.

The firm is scheduled to release second-quarter earnings on Jan. 28.