Regis Corporation (NYSE:RGS), the global leader in the $150 billion to $170 billion hair care industry, today reported consolidated revenues decreased 0.2 percent in the second fiscal quarter of 2011 to $574 million, compared to $575 million a year ago. Second quarter total same-store sales decreased 1.3 percent.

?Our second quarter started out with slightly positive comps in October, but the month of November was soft. We then began to pick up some sales momentum in the first ten days of December, but the storms and cold weather over the last twenty days of the month had a significant impact on customer traffic,? commented Paul D. Finkelstein, Chairman and Chief Executive Officer. ?Looking forward, we remain optimistic. Our customer visitation trends have improved and we expect that trend to continue. We also believe our operational initiatives and focus on top-line growth will result in additional customer traffic.?

   

Second Quarter Revenues:

 
For the Three Months Ended December 31, 2010
Salons   Hair Restoration  
North America   International Centers Consolidated
(Dollars in thousands)
Revenues:
Service $ 388,655 $ 25,635 $ 16,714 $ 431,004
Product 103,780 11,396 18,535 133,711
Royalties and fees   9,003     -     597     9,600
Total $ 501,438   $ 37,031   $ 35,846   $ 574,315
 
   
For the Three Months Ended December 31, 2009
Salons   Hair Restoration  
North America   International Centers Consolidated
(Dollars in thousands)
Revenues:
Service $ 390,318 $ 28,366 $ 16,441 $ 435,125
Product 100,614 11,980 18,077 130,671
Royalties and fees   8,969     -     600     9,569
Total $ 499,901   $ 40,346   $ 35,118   $ 575,365
 
 

Second Quarter Same-Store Sales:

For the Three Months Ended December 31,
   

2010

    

2009

Service   Retail   Total Service   Retail   Total
Regis Salons -3.2 %   6.1 %   -1.6 % -9.3 %   -13.0 %   -10.0 %
MasterCuts -1.3 6.7 0.2 -2.2 -3.0 -2.3
Supercuts 0.5 -1.0 0.3 0.9 4.7 1.3
Promenade -2.8 1.8 -2.3 -3.6 -5.0 -3.7
SmartStyle -1.9   -1.1   -1.6   -3.2   -0.2   -2.2  
Domestic Same-Store Sales -2.1 % 1.4 % -1.4 %   -4.1 % -3.7 % -4.0 %
 
International Same-Store Sales -6.4 % 3.3 % -3.1 %   -1.3 % -2.3 % -1.6 %
 
Hair Restoration Same-Store Sales 1.2 % 0.4 % 0.8 %   -0.9 % 1.1 % 0.1 %
 
Consolidated Same-Store Sales -2.1 % 1.5 % -1.3 %   -3.9 % -2.9 % -3.7 %
 

International same-store sales for the quarter represent the 12-week period ended December 11, 2010 versus the 12-week period ended December 12, 2009.

Regis Corporation will announce second quarter 2011 earnings results on January 26, 2011. A conference call discussing second quarter results will follow at 10:00 a.m., Central time. Interested parties are invited to listen by logging on to www.regiscorp.com.

About Regis Corporation
Regis Corporation (NYSE:RGS) is the beauty industry's global leader in beauty salons, hair restoration centers and cosmetology education. As of September 30, 2010, the Company owned, franchised or held ownership interests in over 12,700 worldwide locations. Regis' corporate and franchised locations operate under concepts such as Supercuts, Sassoon Salon, Regis Salons, MasterCuts, SmartStyle, Cost Cutters, Cool Cuts 4 Kids and Hair Club for Men and Women. In addition, Regis maintains an ownership interest in Provalliance, which operates salons primarily in Europe, under the brands of Jean Louis David, Franck Provost and Saint Algue. Regis also maintains ownership interests in Empire Education Group in the U.S. and the MY Style concepts in Japan. System-wide, these and other concepts are located in the U.S. and in over 30 other countries in North America, South America, Europe, Africa and Asia. For additional information about the company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Information section of the corporate website at www.regiscorp.com. To join Regis Corporation's email alert list, click on this link: http://www.b2i.us/irpass.asp?BzID=913&to=ea&Nav=1&S=0&L=1

This press release contains ?forward-looking statements? within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward–looking statements in this document reflect management's best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, ?may,? ?believe,? ?project,? ?forecast,? ?expect,? ?estimate,? ?anticipate? and ?plan.? In addition, the following factors could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include the results and impact of the Company's announcement to explore strategic alternatives; competition within the personal hair care industry, which remains strong, both domestically and internationally; price sensitivity; changes in economic conditions, and in particular, continued weakness in the U.S. and global economies; changes in consumer tastes and fashion trends; the ability of the Company to implement its planned spending and cost reduction plan and to continue to maintain compliance with the financial covenants in its credit agreements; labor and benefit costs; legal claims; risk inherent to international development (including currency fluctuations); the continued ability of the Company and its franchisees to obtain suitable locations and financing for new salon development and to maintain satisfactory relationships with landlords and other licensors with respect to existing locations; governmental initiatives such as minimum wage rates, taxes and possible franchise legislation; the ability of the Company to successfully identify, acquire and integrate salons that support its growth objectives; the ability of the Company to maintain satisfactory relationships with suppliers; or other factors not listed above. The ability of the Company to meet its expected revenue target is dependent on salon acquisitions, new salon construction and same-store sales increases, all of which are affected by many of the aforementioned risks. Additional information concerning potential factors that could affect future financial results is set forth in the Company's Annual Report on Form 10-K for the year ended June 30, 2010. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements on Schedule 14A.

Regis Corporation
Mark Fosland, 952-806-1707
Vice President, Finance