RGS Earnings Prediction
The chart below shows how RGS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RGS sees a +9.35% change in stock price 10 days leading up to the earnings, and a +1.08% change 10 days following the report. On the earnings day itself, the stock moves by -10.02%. This data can give you a slight idea of what to expect for the next quarter's release.
RGS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
46.06M
-13.70%
-6.72%
Gross Margin
--
--
--
Operating Margin
5.40%
-61.23%
-48.91%
Net Margin
-3.93%
-275.45%
-102.13%
EPS
-0.36
-170.59%
-100.98%
No Data Available
RGS Earnings Analysis
Regis Corporation Corporation (RGS.N) Earnings Conference Call
Positive
Earnings Per Share Increase: 1. Adjusted Earnings Per Share Growth: Regis reported an adjusted earnings per share of $0.93 for Q1 2025, up from $0.71 in the prior year, reflecting a significant improvement in profitability.
EBITDA Margin Improvement: 2. Adjusted EBITDA Margin Expansion: The adjusted EBITDA margin for the quarter was 40%, representing a two percentage point increase compared to the previous year, indicating improved operational efficiency.
Cash Flow Improvement: 3. Improved Cash Flow from Operations: The company used $1.3 million in cash from operations, which is an improvement of $1.5 million from the prior year, primarily due to reduced cash used for working capital.
Loyalty Program Impact: 4. Loyalty Program Success: Following the rollout of the Supercuts Rewards loyalty program, loyalty member sales reached 20% of total sales within three weeks for the 1,250 Supercuts salons, showcasing strong customer engagement.
Liquidity Improvement: 5. Increased Liquidity Position: As of September 30, 2024, Regis had $21.9 million in available liquidity, including $15.7 million of revolver capacity, providing a solid financial foundation for future growth.
Negative
Revenue Decline Analysis: 1. Decline in Revenue: Total first quarter revenues were $46.1 million, a decline of $7.3 million from the prior year.
Same-Store Sales Decline: 2. Same-Store Sales Drop: System-wide same-store sales declined by 1.1% in the quarter, indicating ongoing challenges in attracting customers.
Net Loss Analysis: 3. Net Loss Reported: The company reported a GAAP net loss of $900,000 and a diluted loss per share of $0.36, compared to income of $1.2 million and diluted income per share of $0.51 a year ago.
Operating Income Decline: 4. Operating Income Decrease: GAAP operating income fell to $2.1 million from $7.4 million in the prior year, a decrease of $5.3 million driven by lower core business revenue and increased expenses.
Franchise Closure Consequences: 5. Franchise Closures Impact: The company closed a net 41 franchise locations in the quarter, with these closures averaging $140,000 in trailing 12-month sales, significantly below the top quartile average of $460,000.
RGS FAQs
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RGS Earning Call Sentiment
Regis Corporation (RGS) Q1 2025 Earnings Call Transcript
1.0x
00:00
00:00
RGS.N
0.8%Positive
The earnings call summary reveals several negative indicators: a decline in total revenue and same-store sales, ongoing franchise closures, and a GAAP net loss. Despite some positive aspects like increased adjusted EPS and debt refinancing, the lack of a share repurchase program, and operational challenges contribute to a negative sentiment. The Q&A section does not provide additional positive insights to offset these concerns. Considering these factors, the stock price is likely to experience a negative movement over the next two weeks.
