Regis (RGS) Financial Report Summaries

Risks

• Changes in consumer shopping trends and manufacturer choice of distribution channels may negatively affect both service and product revenues.
• We are subject to laws and regulations that could require us to modify our current business practices and incur increased costs, which could have an adverse effect on our business, financial condition, and revenues.
• Changes in the general economic environment may impact our business and results of operations.
• Changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns may impact our revenue.
• We are substantially dependent on franchise royalties and the overall success of our franchisees' salons.
• Our salons are dependent on a third-party preferred supplier agreement for merchandise.
• It is important for us and our franchisees to attract, train and retain talented stylists and salon leaders.
• Our continued success depends, in part, on the success of our franchisees, which operate independently.
• Data security and data privacy compliance requirements could increase our costs, and cybersecurity incidents could result in the compromise of potentially sensitive information about our guests, franchisees, employees, vendors, or Company and expose us to business disruption, negative publicity, costly government enforcement actions or private litigation and our reputation could suffer.
• Our U.S. SmartStyle and Cost Cutters (located in Walmart) salon operations are dependent on our relationship with Walmart.
• Our future growth and profitability may depend, in part, on our ability to build awareness and drive traffic with advertising and marketing efforts and on delivering a quality guest experience to drive repeat visits to our salons.
• Our success depends substantially on the value of our brands.
• We rely heavily on our information technology systems for our key business processes. If we experience an interruption in their operation, our results of operations may be affected.
• We rely on external vendors for products and services critical to our operations.
• The use of social media may have an adverse effect on our reputation.
• Our enterprise risk management program may leave us exposed to unidentified or unanticipated risks.
• Premature termination of franchise agreements can cause losses.
• Failure to control costs may adversely affect our operating results.
• If we are not able to successfully compete in our business markets, our financial results may be affected.
• We rely on our management team and other key personnel.
• If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results and prevent or detect material misstatements due to fraud, which could reduce investor confidence and adversely affect the value of our common stock.
• We could be subject to changes in tax rates, the adoption of new U.S. or international tax legislation or exposure to additional tax liabilities.
• Our Board has adopted a Tax Benefits Preservation Plan, which may not protect the future availability of the Company’s tax assets in all circumstances, and which could delay or discourage takeover attempts that some shareholders may consider favorable.