Regis, the 104-year-old beauty chain, closed 199 net salons in fiscal 2026, ending the year with 207 closures and 8 openings, as the company continues to shrink its footprint amid a persistent staffing shortage. The closures were predominantly lower-volume locations, with an average unit volume of approximately $136,000, roughly $364,000 below the average of the highest-performing quartile. Despite the decline, Regis reported $32.8 million in adjusted EBITDA, up $1.2 million from fiscal 2025, and $13.5 million in unrestricted cash from operations, up from $5.4 million. CEO Susan Lintonsmith highlighted positive comparable sales growth in the fourth quarter, with consolidated same-store sales up 0.1% and Supercuts up 2.6%, while full-year same-store sales rose 0.9%. However, CFO Kersten Zupfer warned that fiscal 2027 closures are not expected to be materially different from fiscal 2026, as the company faces challenges from a labor shortage and competition from chains like Great Clips and Sport Clips.
Regis Corporation Common StockClosures due to labor shortage and competition, with more closures expected.
