Regis says 4Q same-store sales rose 0.6 percent

Hair salon operator Regis Corp. on Thursday said fourth-quarter same-store sales rose 0.6 percent as hair restoration sales rose.

Regis previously estimated a same-store sales increase of 0.5 percent to 2.5 percent for the period.

Same-store sales is a key indicator of retailer performance because it measures growth at existing stores rather than newly opened ones.

Regis said same-store sales at domestic locations rose 1 percent, while international same-store sales declined 4.5 percent and hair restoration same-store sales climbed 2.8 percent.

Total hair restoration revenue rose to $35.7 million in the fourth quarter from $31.9 million in the year-ago period. Salon sales rose to $673.3 million from $622.2 million.

Total sales for the quarter ended June 30 increased 5 percent to $709.1 million from $675.3 million in the year-ago quarter. Analysts polled by Thomson Financial expected total quarterly sales of $708.7 million, on average.

For the full year, Regis said same-store sales increased 0.5 percent _ within its previous guidance of between 0.5 percent and 1 percent.

Total revenue grew 4.2 percent to $2.74 billion from $2.63 billion in 2007. Analysts predicted full-year revenue of $2.74 billion.

Excluding the impact of deconsolidations of beauty schools and European franchise salon operations, Regis said quarterly revenue would have increased 10.1 percent, while annual revenue would have risen 7.9 percent.