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Regis Corporation (RGS) Stock Trends Lower After Being Replaced in the S&P SmallCap 600 Index

Regis Corporation (RGS) stock prices were down by 7.14% shortly after market trading commenced on October 6th 2021. This brought the price per share up to USD$2.86 early on in the trading day.


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RGS Stock Replaced in S&P Index

October 5th 2021 saw RGS stock be replaced by CCSI stock in the S&P SmallCap 600. This development will be effective as of the commencement of the trading day on October 11th 2021. The S&P Down Jones Indices are the world’s largest global resource for essential index-based concepts, data and research. The various indices see more assets being invested in their derived products than in any other index in the world.

Net Loss Breakdown

The haircare industry leader reported a net loss from continuing operations in the amount of USD$34.3 million for Q4 2021. This represented a net loss from continuing operations of USD$0.95 per diluted share in the fourth quarter of fiscal 2021. This is comparable to the USD$73.7 million net loss reported in the prior year quarter, which represented a net loss of USD$2.05 per diluted share. The year over year improvement was largely attributable to government mandated salon closures in the 2020 quarter, as a result of the onset of the global coronavirus pandemic. This yearly improvement was partially offset by  the loss from the sale of salons to franchisees, amounting to USD$7.1 million lower than in the previous year because of lower proceeds per salon.

Revenue Breakdown

The fourth quarter of fiscal 2021 saw RGS stock report Franchise revenue in the amount of USD$73.8 million. This represents a massive 64.7% increase from the numbers reported for the prior year quarter. Royalties and fees came in at USD$26.7 million, representing a monumental 265.8% increase in comparison to reports from the prior year quarter. Product sales from franchisees were up by USD$8.4 million year over year to hit USD$15.6 million for the 2021 quarter. These increases were all largely driven by government mandated salon closures in the prior year period, on account of the onset of the Covid-19 pandemic.

Future Outlook for RGS Stock

The company is poised to capitalize on the opportunities ahead of it to mitigate the impact of being replace in the S&P SmallCap 600 Index. RGS stock is keen to continue driving its business strategy in a bid to usher in unprecedented growth. Current and potential investors are hopeful that management will be able to leverage the resources at its disposal. This is hoped to facilitate significant and sustained increases in shareholder value.

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