Regis Corp. reported a narrower loss in the last three months of 2015 and sales at comparable stores rose solidly, a sign that turnaround efforts started to take hold for the hair salon chain.
Regis on Thursday reported a net loss of $14 million, or 29 cents a share, in its second fiscal quarter. The Edina-based company experienced a net loss of $16.7 million, or 30 cents a share, in the same period a year earlier.
Revenue was $450.4 million, down 1 percent from $456.6 million a year earlier. Same-store sales rose 2.2 percent.
The company's bottom line was reduced by 32 cents a share due to an investment-related charge, which was offset by a tax gain of 4 cents a share. Its adjusted earnings before taxes and depreciation, which excludes the one-time effects as well as earnings of affiliated companies, amounted to $17.5 million, up from $17.3 million a year earlier.
Regis over the past two years implemented a new point-of-sale system, restructured management and created new incentives to retain stylists and spur growth at the approximately 9,500 salons that it owns or franchises. It also engaged in a series of closings or relocations. Over the past year, the net effect of those moves was to add 181 franchised locations.
"While our progress is encouraging, it will not be linear," Dan Hanrahan, the company's chief executive, said in a statement. "We have work to do to drive sustainable growth in guest traffic, which will enable us to realize the potential of each of our salons and result in long-term growth and shareholder value."
