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4 years ago
UPDATE 1-Supercuts parent hit as fewer people visit its salons
August 27, 2013 / 11:19 AM / 4 years ago

UPDATE 1-Supercuts parent hit as fewer people visit its salons

* Fourth-quarter adj earnings/share $0.06 vs est $0.12

* Revenue falls 5 pct to $502.3 mln vs est $513.2 million

* Same-store sales decline 3.1 pct

Aug 27 (Reuters) - Supercuts operator Regis Corp's profit missed Wall Street estimates by a wide margin for the fourth quarter in a row as fewer people visited its hair salons.

The company, which also operates the Sassoon, MasterCuts and Cost Cutters hair salons, said current-quarter same-store service sales are down 3.4 percent so far.

A host of retailers have cited weak consumer spending in the United States for declines in same-store sales. Companies offering discretionary products or services have been hit the hardest.

Regis, also known for its value-priced SmartStyle chain, whose salons are located inside Walmart supercenters, said North America salon revenue fell in the fourth quarter, leading to a 5.3 percent drop in service revenue.

It posted net income of $675,000, or 1 cent per share, compared with a loss of $63.6 million, or $1.11 per share, a year earlier.

On an adjusted basis, Regis earned 6 cents per share. Analysts on average were expecting a profit of 12 cents per share, according to Thomson Reuters I/B/E/S.

Revenue fell 5 percent to $502.3 million in the quarter ended June 30. Analysts had expected $513.2 million.

Same-store sales declined 3.1 percent.

As of June 30, Regis owned, franchised or held stakes in 9,763 locations worldwide.

Shares of the Minneapolis, Minnesota-based company closed at $17.16 on the New York Stock Exchange on Monday.

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