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Regis (RGS) Gross Margin %

: 36.81% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Regis's Gross Profit for the three months ended in Dec. 2023 was $18.8 Mil. Regis's Revenue for the three months ended in Dec. 2023 was $51.1 Mil. Therefore, Regis's Gross Margin % for the quarter that ended in Dec. 2023 was 36.81%.

Warning Sign:

Regis Corp gross margin has been in long-term decline. The average rate of decline per year is -11.4%.


The historical rank and industry rank for Regis's Gross Margin % or its related term are showing as below:

RGS' s Gross Margin % Range Over the Past 10 Years
Min: 18.77   Med: 42.16   Max: 45.67
Current: 35.56


During the past 13 years, the highest Gross Margin % of Regis was 45.67%. The lowest was 18.77%. And the median was 42.16%.

RGS's Gross Margin % is ranked worse than
68.63% of 102 companies
in the Personal Services industry
Industry Median: 45.15 vs RGS: 35.56

Regis had a gross margin of 36.81% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Regis was -11.40% per year.


Regis Gross Margin % Historical Data

The historical data trend for Regis's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Regis Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.59 35.17 18.77 23.78 32.81

Regis Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.62 32.68 36.12 36.78 36.81

Competitive Comparison

For the Personal Services subindustry, Regis's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Regis Gross Margin % Distribution

For the Personal Services industry and Consumer Cyclical sector, Regis's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Regis's Gross Margin % falls into.



Regis Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Regis's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=76.5 / 233.326
=(Revenue - Cost of Goods Sold) / Revenue
=(233.326 - 156.783) / 233.326
=32.81 %

Regis's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=18.8 / 51.053
=(Revenue - Cost of Goods Sold) / Revenue
=(51.053 - 32.261) / 51.053
=36.81 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Regis  (NAS:RGS) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Regis had a gross margin of 36.81% for the quarter that ended in Dec. 2023 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Regis Gross Margin % Related Terms

Thank you for viewing the detailed overview of Regis's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Regis (RGS) Business Description

Traded in Other Exchanges
Address
3701 Wayzata Boulevard, Suite 500, Minneapolis, MN, USA, 55416
Regis Corp owns, franchises, and operates beauty salons throughout North America and the United Kingdom. The company's locations provide salon products and services to the mass market, including haircutting, styling, and hair coloring. The vast majority of Regis' salons are in strip malls, shopping centers, and Wal-Mart stores in North America and serve price-conscious customers. The company derives the majority of its revenue from these locations. The sale of products also contributes a relatively significant percentage of total sales. Regis also operates a smaller portfolio of premium salons across North America and the U.K. The company's majority brands include SmartStyle, Cost Cutters, and Supercuts.
Executives
Nancy Cunningham Benacci director PO BOX 145496, CINCINNATI OH 45250
Devore Michelle St. Lawrence officer: SVP, Marketing 6119 BRANDEIS LANE, DALLAS TX 75214
Andra Jean Terrell officer: SVP, General Counsel 4922 MARLOS DRIVE NE, MARIETTA GA 30066
James Raymon Suarez officer: SVP Merchandising & Education 9043 VICTORIA DRIVE, EDEN PRAIRIE MN 55347
Michael Joseph Mansbach director 4051 BROAD STREET, SUITE 220, SAN LUIS OBISPO CA 93401
Lockie Andrews director 3701 WAYZATA BLVD, MINNEAPOLIS MN 55416
John C. Davi officer: EVP, Chief Technology Officer 3701 WAYZATA BLVD, MINNEAPOLIS MN 55416
Springhill Investments Llc 10 percent owner ONE TOWNE SQUARE, SUITE 1600, SOUTHFIELD MI 48076
James Grosfeld 10 percent owner C/O MERRILL LYNCH ASSET MANAGEMENT, 800 SCUDDERS MILL RD LEGAL ADVISORY 2-B, PLAINSBORO NJ 08536
James Grosfeld Trust 10 percent owner ONE TOWNE SQUARE, SUITE 1600, SOUTHFIELD MI 48076
New Walnut Gp Llc 10 percent owner 655 MADISON AVENUE, 11TH FLOOR, NEW YORK NY 10065
Torch Brc, Lp 10 percent owner 405 LEXINGTON AVENUE, SUITE 839, SUITE 2215, NEW YORK NY 10174
Walnut Brc, L.p. 10 percent owner 655 MADISON AVENUE, 11TH FLOOR, NEW YORK NY 10065
Jim Brian Lain officer: EVP & Chief Operating Officer 7201 METRO BOULEVARD, MINNEAPOLIS MN 55439
Michael Heath Ferranti officer: SVP, People and Culture 16011 RANCHITA DRIVE, DALLAS TX 75252