Regis 3Q Revenue Declines On Spending Pullback

MINNEAPOLIS (AP) — Regis Corp. said Wednesday that its third-quarter revenue fell 3 percent on a consumer spending pullback and the deconsolidation of its European franchise salons, but the results still beat Wall Street's expectations.

The company, which owns Supercuts, Sassoon and other hair salons, merged its European business with the Franck Provost Salon Group in January 2008.

For the period ended March 31, revenue declined to $603.6 million from $618.9 million a year earlier.

Analysts predicted revenue of $591.2 million, according to a Thomson Reuters survey.

Regis, like many hair and beauty operators, has been squeezed as customers scale back on their discretionary spending — which has led some to forgo certain treatments or go for hair cuts less frequently.

Same-store sales, or sales at stores open at least a year, dropped 4.5 percent partly because of a shift in the Easter holiday. Same-store sales are a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

Regis will report third-quarter earnings on April 29. The company owned, franchised or held ownership interests in more than 12,800 global locations as of Feb. 16.