Wed, Aug 28, 9:01 PM (139 days ago)
Regis Corporation's fiscal year 2024 ended June 30, 2024, showed a decline in franchise salons from 4,795 to 4,391, with 429 closures impacting future royalty income. Total revenue dropped to $203 million from $233 million, driven by a 2.9% decrease in royalties and an 82.1% decline in product sales due to a shift to third-party distribution. Operating income improved to $20.9 million from $8.8 million, aided by a $94.6 million gain from debt extinguishment. Net income surged to $91.1 million, reversing a loss of $7.4 million, with earnings per share at $38.93. The company maintained $10.1 million in cash, with a new $105 million term loan and $25 million revolving credit facility maturing in 2029. Risks include reliance on franchisee performance and potential compliance issues with evolving regulations. The company plans to focus on enhancing brand value and improving guest experiences to drive traffic and profitability.