MINNEAPOLIS (AP) — Regis Corp. shares fell Wednesday after the hair salon company reported a drop in fiscal third-quarter sales and a loss for the period.
The company’s CEO, Dan Hanrahan, said that the results are “not acceptable”. He pointed to turnaround efforts as part of the reason for a disruption in business, but said the company is moving into a phase where the benefits of these efforts will be evident.
Regis, based in Minneapolis, owns hair salon chains such as Supercuts, MasterCuts, SmartStyle and Promenade. The company has updated its technology and management as part of its turnaround effort, as well as trying to cut loss at its stores and improve sales trends.
The company posted a loss of $9.5 million, or 17 cents per share, for the quarter that ended March 31. That’s compared with net income of $2.4 million, or 4 cents per share last year. On an adjusted basis, it lost 15 cents per share versus earnings of 1 cent per share last year.
Regis’ total revenue fell nearly 7 percent to $471.6 million from $504.9 million. Revenue from its stores open at least a year fell 5.7 percent for the quarter. This is considered a key indicator of financial performance. It strips away the impact of recently opened or closed sites.
Analysts polled by FactSet were anticipating a loss of 6 cents per share on revenue of $469.1 million.
Shares fell 36 cents, a 2.7 percent drop, to $12.81 by midday Wednesday. Its share are down almost 32 percent over the past year.
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