Regis Corp. (NYSE:RGS) Q2 2016 Earnings Conference Call - Preliminary Transcript
Jan 28, 2016 • 10:00 am ET
Good morning. My name is Angel and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Regis Corporation Fiscal 2016 Second Quarter Earnings Call. All line have been placed on mute to prevent any background noise. If anyone has not received a copy of today's press release, please call Regis Corporation at 952-806-2154 and a copy will be sent to you immediately. If you wish to access the replay for this call, you may do so by dialing 1-888-203-1112, access code 9714235. The replay will be available 60 minutes after the conclusion of today's call.
I would like to remind everyone that to the extent the company's statements or comments this morning represent forward-looking statements. I refer you to the risk factors and other cautionary factors in today's news release as well as the company's SEC filings. Reconciliation to non-GAAP financial measures mentioned in the following presentation, as well as others, can be found on their website at www.regiscorp.com.
Speaking today will be Dan Hanrahan, Chief Executive Officer; and Steve Spiegel, Chief Financial Officer. After management has completed its review of the quarter, we will open the call for questions. [Operator Instructions]
I'd now like to turn the call over to Mr. Hanrahan for his comments. Dan, you may begin.
Thank you, Angel. Good morning, everyone, and thank you for joining us today. With me are Steve Spiegel, our Executive Vice President and Chief Financial Officer; Eric Bakken, our Executive Vice President and Chief Administrative Officer; and Mark Fosland, our Senior Vice President of Finance.
Our second quarter performance demonstrates continued progress in executing against our strategies. As we review the quarter in greater detail, you will see consistency in our message. Our vision to make Regis a place where stylists have successful and satisfying careers remains unchanged. Our continued focus on leadership development, technical education and asset protection will enable us to make Regis that place. Our strong field leaders are driving sustainable improvement by using tools, processes and metrics we provide to drive growth in their districts and salons quarter after quarter.
As more of our leaders continue to positively comp and our business further stabilizes, investments we make in stylist hours will further contribute to longer-term growth and profitability. And as I've said in the past, while our progress is moving in the right direction, it will not be linear. I will now provide you with more detailed color on the second quarter.
Second quarter same-store sales increased 220 basis points. Service same-store sales increased 90 basis points and retail same-store sales increased by 720 basis points, both driven by improving execution. Service and retail same-store sales trends improved across each of our concepts. SmartStyle and Supercuts remain our best service performers, posting service comps of 480 basis points and 180 basis points, respectively, in the second quarter. I was very pleased with what our team accomplished in the second quarter retail performance, driven by a strong holiday promotional