MINNEAPOLIS--(BUSINESS WIRE)--Regis Corporation (NYSE:RGS), a leader in the haircare industry, whose primary business is owning, operating and franchising hair salons, announced that before the stock market opened today, Piper Jaffray issued a report on Regis Corporation. In its report, Piper Jaffray significantly lowered its estimates by incorporating up to $81 million of incremental costs associated with the new U.S. Department of Labor overtime rules, issued yesterday. Regis Corporation has been following the status of these rule changes for the past several months and analyzing the potential impact of the new rules to the company’s profitability. The Company’s assessment suggests these new rules could increase our costs by up to $5 million per year, and is considering alternative mitigation strategies to reduce this increase. The large difference between Piper Jaffray’s report and the Company’s estimates is due to the fact that our salon managers and a large portion of our district leaders are already treated as hourly employees. Piper Jaffray’s estimates assumed these employees were salaried employees.
About Regis Corporation
Regis Corporation (NYSE:RGS) is the
leader in beauty salons and cosmetology education. As of March 31, 2016,
the Company owned, franchised or held ownership interests in 9,508
worldwide locations. Regis’ corporate and franchised locations operate
under concepts such as Supercuts, SmartStyle, MasterCuts, Regis Salons,
Sassoon Salon, Cost Cutters and First Choice Haircutters. Regis
maintains ownership interests in Empire Education Group in the U.S. and
the MY Style concepts in Japan. 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.
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