Are consumer getting less haircuts? Salon chain owner Regis Corporation
’s total revenue in the first quarter of 2019 fell 8.8% to $287.8 million driven primarily by the net closure of 681 unprofitable salons and the conversion of 477 company-owned salons to franchised locations over the past 12 months. These reductions were offset by revenue growth in the company's franchise segment and a 50 basis point improvement in same-store sales in company-owned salons.
The positive same store sales performance was the result of a 4.2% increase in ticket partially offset by a 3.7% decline in year-over-year traffic, which the company defines as total transactions.
President and Chief Executive Officer Hugh Sawyer commented, “We continue to see signs of progress in our ongoing efforts to transform our business thanks to the efforts of our dedicated associates and franchisees.”