Hair salon operator
said its earnings rose 4.2% in its first quarter, due to tax benefits.
The company earned $23.1 million, or 50 cents a share, in the quarter, compared with $22.2 million, or 48 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of 47 cents a share in the most recent quarter.
First-quarter revenue rose 9.4% to $639.2 million as against analysts' expectation of $632.5 million. Same-store sales, or sales at stores open at least a year, decreased 0.3%.
The Minneapolis-based company expects to earn 50 cents a share to 56 cents a share on revenue of $650 million to $660 million in the second quarter of 2007, and $2.10 a share to $2.24 a share, excluding future possible acquisitions, on revenue of $2.6 billion for the full year. The company expects same-store sales in the range of -1% to 1% in the second quarter and flat to 1% for full year.
Analysts forecast earnings of 62 cents a share on revenue of $658.4 million for the second quarter of fiscal 2007 and earnings of $2.30 a share on revenue of $2.6 billion for the full year.
During the first quarter, the company added a net total of 157 locations.
The company's shares were trading down $1.42, or 3.7%, at $36.85 Wednesday.
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