These reductions were partially offset by revenue growth in the company’s franchise segment and a 50 basis point improvement in company-owned same-store sales. The positive company-owned same-store sales performance was the result of a 5.2% increase in ticket partially offset by a 4.7% decline in year-over-year transactions.
President and Chief Executive Officer Hugh Sawyer commented, “We remain focused on the ongoing transformation of our business and maximizing shareholder value. The gains generated from the sale of our company-owned salons during the quarter met our financial objectives for these transactions when considering not only the cash proceeds received for these salons, but also the on-going growth in predictable royalty fees, anticipated product sales, lower ongoing capital requirements, expected reductions in G&A expense and other intended ancillary benefits including establishing a platform for sustainable organic growth.”
Sawyer added, “This quarter the 133 salon locations we added to our franchise portfolio were substantially from our Supercuts brand. Given our success transitioning elements of our company-owned Supercuts portfolio to franchise, we expect to consider opportunities to franchise our other company-owned brands in certain circumstances where we believe it will add to shareholder value and support an evolving strategy for our business.”