We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Regis (RGS) Tops Q1 Earnings, Lags Revenues; Stock Gains
Read MoreHide Full Article
Regis Corp. (RGS - Free Report) posted mixed first-quarter fiscal 2017 results wherein the bottom line beat the Zacks Consensus Estimate and the top line lagged the same.
Notably, Regis’ shares were up nearly 11% in yesterday’s trading session on solid bottom-line performance.
Earnings and Revenue Discussion
Adjusted earnings of 9 cents per share beat the Zacks Consensus Estimate of 4 cents by 125% and improved substantially from the year-ago loss of 2 cents.
The owner, operator and franchisor of hairstyling and hair care salons posted revenues of $431 million for the quarter, down 4.2% year over year, owing to lower comps as well as closing of unprofitable salons and unfavorable foreign currency translations. Reported revenues missed the Zacks Consensus Estimate of $440 million by 2%.
Consolidated comps in the quarter were down 1%. In comparison, comps were down 1.4% in the prior quarter and had grown 0.7% in the year-ago quarter.
Service revenues dipped 4.2% year over year to $335.5 million mainly due to closing of loss-making salons and foreign currency headwinds. Same-store sales decreased 0.8% owing to a 4.9% decline in guest traffic, partially offset by a 4.1% increase in average ticket price.
Product revenues were down 5.1% year over year to $83.5 million. Same-store sales went down 2.1% due to a 3.9% decrease in guest transactions, partly offset by a 1.8% increase in average ticket price.
Royalties and fees revenues were $12 million, flat year over year. Royalty increases of 5.6% were largely offset by lower franchise fees due to the timing of new salon openings and lapping a higher level of franchise termination fees in the prior-year quarter. Franchisees posted positive same-store sales and the company added 50 new franchised locations in the quarter.
Cost of service, as a percentage of service revenues, increased 40 basis points (bps) to 62.6% due to state minimum wage increases and lapping a rebate in the prior-year quarter, partly offset by improved productivity and lower bonuses.
Cost of product, as a percentage of product revenues, increased 50 bps to 49.4% mainly due to writing off of obsolete inventory.
General and administrative expenses of $40.3 million decreased 9.6% on a year-over-year basis. The decrease was mainly due to timing of expenses expected to turn throughout the year, one-time compensation benefits, lapping certain costs in the prior-year quarter, cost savings and foreign currency, somewhat offset by planned strategic investments in technical training.
Other well-performing stocks in the sector include Big 5 Sporting Goods Corp. (BGFV - Free Report) , Dick’s Sporting Goods, Inc. (DKS - Free Report) and ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA - Free Report) .
Big 5 Sporting Goods currently sports a Zacks Rank #1 (Strong Buy). It has seen current year earnings estimates rise over the past month from 54 cents to 57 cents per share, a move of 5.56%.
Dick’s Sporting Goods’ growth estimate for the next fiscal year is pegged at 20.3% compared with the industry average of 16.1%. It sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ULTA Salon holds a Zacks Rank #2. It has a positive record of earnings surprises in the trailing four quarters, with an average surprise of 7.68%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Regis (RGS) Tops Q1 Earnings, Lags Revenues; Stock Gains
Regis Corp. (RGS - Free Report) posted mixed first-quarter fiscal 2017 results wherein the bottom line beat the Zacks Consensus Estimate and the top line lagged the same.
Notably, Regis’ shares were up nearly 11% in yesterday’s trading session on solid bottom-line performance.
Earnings and Revenue Discussion
Adjusted earnings of 9 cents per share beat the Zacks Consensus Estimate of 4 cents by 125% and improved substantially from the year-ago loss of 2 cents.
The owner, operator and franchisor of hairstyling and hair care salons posted revenues of $431 million for the quarter, down 4.2% year over year, owing to lower comps as well as closing of unprofitable salons and unfavorable foreign currency translations. Reported revenues missed the Zacks Consensus Estimate of $440 million by 2%.
Performance in Detail
Consolidated comps in the quarter were down 1%. In comparison, comps were down 1.4% in the prior quarter and had grown 0.7% in the year-ago quarter.
Service revenues dipped 4.2% year over year to $335.5 million mainly due to closing of loss-making salons and foreign currency headwinds. Same-store sales decreased 0.8% owing to a 4.9% decline in guest traffic, partially offset by a 4.1% increase in average ticket price.
Product revenues were down 5.1% year over year to $83.5 million. Same-store sales went down 2.1% due to a 3.9% decrease in guest transactions, partly offset by a 1.8% increase in average ticket price.
Royalties and fees revenues were $12 million, flat year over year. Royalty increases of 5.6% were largely offset by lower franchise fees due to the timing of new salon openings and lapping a higher level of franchise termination fees in the prior-year quarter. Franchisees posted positive same-store sales and the company added 50 new franchised locations in the quarter.
Cost of service, as a percentage of service revenues, increased 40 basis points (bps) to 62.6% due to state minimum wage increases and lapping a rebate in the prior-year quarter, partly offset by improved productivity and lower bonuses.
Cost of product, as a percentage of product revenues, increased 50 bps to 49.4% mainly due to writing off of obsolete inventory.
General and administrative expenses of $40.3 million decreased 9.6% on a year-over-year basis. The decrease was mainly due to timing of expenses expected to turn throughout the year, one-time compensation benefits, lapping certain costs in the prior-year quarter, cost savings and foreign currency, somewhat offset by planned strategic investments in technical training.
REGIS CORP/MN Price, Consensus and EPS Surprise
REGIS CORP/MN Price, Consensus and EPS Surprise | REGIS CORP/MN Quote
Zacks Rank & Stocks to Consider
Regis currently has a Zacks Rank #2 (Buy).
Other well-performing stocks in the sector include Big 5 Sporting Goods Corp. (BGFV - Free Report) , Dick’s Sporting Goods, Inc. (DKS - Free Report) and ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA - Free Report) .
Big 5 Sporting Goods currently sports a Zacks Rank #1 (Strong Buy). It has seen current year earnings estimates rise over the past month from 54 cents to 57 cents per share, a move of 5.56%.
Dick’s Sporting Goods’ growth estimate for the next fiscal year is pegged at 20.3% compared with the industry average of 16.1%. It sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ULTA Salon holds a Zacks Rank #2. It has a positive record of earnings surprises in the trailing four quarters, with an average surprise of 7.68%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>