Regis (RGS) 10-Q 29 Oct 19 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Sep. 30, 2019	Oct. 23, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	1-12725
Entity Registrant Name	Regis Corp
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-0749934
Entity Address, Address Line One	7201 Metro Boulevard
Entity Address, City or Town	Edina
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55439
City Area Code	952
Local Phone Number	947-7777
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $.05 par value
Entity Common Stock, Shares Outstanding		35,548,036
Entity Central Index Key	0000716643
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 58,902	$ 70,141
Receivables, net	28,724	30,143
Inventories	74,634	77,322
Other current assets	32,194	33,216
Total current assets	194,454	210,822
Property and equipment, net	71,442	78,090
Goodwill	313,251	345,718
Other intangibles, net	8,416	8,761
Right of use asset	930,784
Other assets	33,094	34,170
Long term assets held for sale	5,276	5,276
Total assets	1,556,717	682,837
Current liabilities:
Accounts payable	53,219	47,532
Accrued expenses	62,241	80,751
Short-term lease liability	161,407
Total current liabilities	276,867	128,283
Long-term debt, net	90,000	90,000
Long-term lease liabilities	781,134
Long-term financing liabilities	28,719	28,910
Other noncurrent liabilities	96,258	111,399
Total liabilities	1,272,978	358,592
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.05 par value; issued and outstanding 35,548,036 and 36,869,249 common shares at September 30, 2019 and June 30, 2019, respectively	1,777	1,843
Additional paid-in capital	20,880	47,152
Accumulated other comprehensive income	8,939	9,342
Retained earnings	252,143	265,908
Total shareholders’ equity	283,739	324,245
Total liabilities and shareholders’ equity	$ 1,556,717	$ 682,837

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2019	Jun. 30, 2019
Statement of Financial Position [Abstract]
Common stock par value (in dollars per share)	$ 0.05	$ 0.05
Common stock issued (in shares)	35,548,036	36,869,249
Common stock outstanding (in shares)	35,548,036	36,869,249

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Sep. 30, 2019	Sep. 30, 2018
Revenues:
Franchise rental income		$ 31,424
Total Revenues		247,038	$ 287,835
Operating expenses:
Cost of service		90,482	121,497
Cost of product		26,327	32,181
Site operating expenses		32,942	36,821
General and administrative		40,625	47,727
Rent		31,400
Depreciation and amortization		9,380	10,202
TBG restructuring		1,500	0
Total operating expenses		256,944	284,406
Operating (loss) income		(9,906)	3,429
Other (expense) income:
Interest expense		(1,439)	(1,006)
Loss on sale of salon assets to franchisees, net		(5,860)	(3,960)
Interest income and other, net		171	360
Loss from continuing operations before income taxes		(17,034)	(1,177)
Income tax benefit		2,856	714
Loss from continuing operations		(14,178)	(463)
Income (loss) from discontinued operations, net of income taxes		373	(264)
Net loss		$ (13,805)	$ (727)
Basic and Diluted:
Loss from continuing operations (in dollars per share)		$ (0.39)	$ (0.01)
Income (loss) from discontinued operations (in dollars per share)		0.01	(0.01)
Net loss per share, basic (in dollars per share)	[1]	$ (0.38)	$ (0.02)
Weighted average common and common equivalent shares outstanding:
Basic and Diluted (in shares)		36,249	44,730
Service
Revenues:
Revenues		$ 141,941	$ 207,848
Product
Revenues:
Revenues		45,656	57,591
Royalties and fees
Revenues:
Revenues		28,017	22,396
Non-franchise operations
Operating expenses:
Rent		24,264
Rent			$ 35,978
Franchise
Operating expenses:
Rent		$ 31,424
[1]	Total is a recalculation; line items calculated individually may not sum to total due to rounding.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (13,805)	$ (727)
Net current period foreign currency translation adjustments	(403)	1,081
Comprehensive (loss) income	$ (14,208)	$ 354

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Retained Earnings
Beginning balance (in shares) at Jun. 30, 2018		45,258,571
Beginning balance at Jun. 30, 2018	$ 486,438	$ 2,263	$ 194,436	$ 9,656	$ 280,083
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(727)				(727)
Foreign currency translation adjustments	$ 1,081			1,081
Stock repurchase program (in shares)	(1,100,000)	(1,093,679)
Stock repurchase program	$ (19,337)	$ (54)	(19,283)
Exercise of SARs (in shares)		5,783
Exercise of SARs	(42)		(42)
Stock-based compensation	2,335		2,335
Net restricted stock activity (in shares)		157,452
Net restricted stock activity	(1,455)	$ 8	(1,463)
Minority interest	64				64
Ending balance (in shares) at Sep. 30, 2018		44,328,127
Ending balance at Sep. 30, 2018	$ 468,357	$ 2,217	175,983	10,737	279,420
Beginning balance (in shares) at Jun. 30, 2019	36,869,249	36,869,249
Beginning balance at Jun. 30, 2019	$ 324,245	$ 1,843	47,152	9,342	265,908
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(13,805)				(13,805)
Foreign currency translation adjustments	$ (403)			(403)
Stock repurchase program (in shares)	(1,500,000)	(1,504,000)
Stock repurchase program	$ (26,356)	$ (75)	(26,281)
Exercise of SARs (in shares)		276
Stock-based compensation	1,807		1,807
Net restricted stock activity (in shares)		182,511
Net restricted stock activity	(1,789)	$ 9	(1,798)
Minority interest	$ 40				40
Ending balance (in shares) at Sep. 30, 2019	35,548,036	35,548,036
Ending balance at Sep. 30, 2019	$ 283,739	$ 1,777	$ 20,880	$ 8,939	$ 252,143

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss		$ (13,805)	$ (727)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash adjustments related to discontinued operations		(470)	(427)
Depreciation and amortization		7,863	8,371
Deferred income taxes		(3,821)	(875)
Loss on sale of salon assets to franchisees, net		5,860	3,960
Salon asset impairments		1,517	1,831
Stock-based compensation		1,807	2,335
Amortization of debt discount and financing costs		69	69
Other items affecting earnings		(23)	352
Changes in operating assets and liabilities, excluding the effects of asset sales	[1]	(12,477)	(32,053)
Net cash used in operating activities		(13,480)	(17,164)
Cash flows from investing activities:
Capital expenditures		(4,899)	(11,258)
Proceeds from sale of salon assets to franchisees		37,945	12,422
Costs associated with sale of salon assets to franchisees		(1,019)	0
Proceeds from company-owned life insurance policies		0	24,617
Net cash provided by investing activities		32,027	25,781
Cash flows from financing activities:
Repurchase of common stock		(28,247)	(19,337)
Taxes paid for shares withheld		(1,808)	(1,918)
Sale and leaseback payments		(248)
Net cash used in financing activities		(30,303)	(21,255)
Effect of exchange rate changes on cash and cash equivalents		3	388
Decrease in cash, cash equivalents, and restricted cash		(11,753)	(12,250)
Cash, cash equivalents, and restricted cash:
Beginning of period		92,379	148,774
End of period		$ 80,626	$ 136,524
[1]	Changes in operating assets and liabilities exclude assets and liabilities sold.

BASIS OF PRESENTATION OF UNAUDI

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The unaudited interim Condensed Consolidated Financial Statements of Regis Corporation (the "Company") as of September 30, 2019 and for the three months ended September 30, 2019 and 2018 , reflect, in the opinion of management, all adjustments necessary to fairly state the consolidated financial position of the Company as of September 30, 2019 and its consolidated results of operations, comprehensive (loss) income , changes in equity and cash flows for the interim periods. Adjustments consist only of normal recurring items, except for any discussed in the notes below. The results of operations and cash flows for any interim period are not necessarily indicative of results of operations and cash flows for the full year. The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). The unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2019 and other documents filed or furnished with the SEC during the current fiscal year. Goodwill: As of September 30, 2019 and June 30, 2019 , the Franchise reporting unit had $227.8 million and $227.9 million of goodwill and the Company-owned reporting unit had $85.4 million and $117.8 million of goodwill, respectively. See Note 9 to the unaudited interim Condensed Consolidated Financial Statements. The Company assesses goodwill impairment on an annual basis, during the Company’s fourth fiscal quarter, and between annual assessments if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount. An interim impairment analysis was not required in the three months ended September 30, 2019. The Company performs its annual impairment assessment as of April 30. For the fiscal year 2019 annual impairment assessment, due to the transformational efforts completed during the year, the Company elected to forgo the optional Step 0 assessment and performed the quantitative impairment analysis on the Franchise and Company-owned reporting units. The Company compared the carrying value of the reporting units, including goodwill, to their estimated fair value. The results of these assessments indicated that the estimated fair value of the Company's reporting units exceeded their carrying value. The Franchise reporting unit had substantial headroom and the Company-owned reporting unit had headroom of approximately 20% . The fair value of the Company-owned reporting unit was determined based on a discounted cash flow analysis. The key assumptions used in determining fair value were the number and pace of salons sold to franchisees and proceeds from salon sales. We selected the assumptions by considering our historical financial performance and trends, historical salon sale proceeds and estimated future salon sale activities. The preparation of our fair value estimate includes uncertain factors and requires significant judgments and estimates which are subject to change. There are a number of uncertain factors or events that exist which may result in a future triggering event and require an interim impairment analysis with respect to the carrying value of goodwill for the Company-owned reporting unit prior to our annual assessment. These internal and external factors include but are not limited to the following: • Changes in the company-owned salon strategy, • Salon closures or other restructuring, • Franchise expansion and sales opportunities, • Future market earnings multiples deterioration, • Our financial performance falls short of our projections due to internal operating factors, • Economic recession, • Reduced salon traffic, • Deterioration of industry trends, • Increased competition, • Inability to reduce general and administrative expenses as company-owned salon count potentially decreases, • Other factors causing our cash flow to deteriorate. If the triggering event analysis indicates the fair value of the Company-owned reporting unit has potentially fallen below more than the 20% headroom, we may be required to perform an updated impairment assessment which may result in a non-cash impairment charge to reduce the carrying value of goodwill. Assessing goodwill for impairment requires management to make assumptions and to apply judgment, including forecasting future sales and expenses, and selecting appropriate discount rates, which can be affected by economic conditions and other factors that can be difficult to predict. The Company does not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions it uses to calculate impairment losses of goodwill. However, if actual results are not consistent with the estimates and assumptions used in the calculations, or if there are significant changes to the Company's planned strategy for company-owned salons, the Company may be exposed to future impairment losses that could be material. Non-Current Assets Held for Sale: In March 2019, the Company announced that it had entered into a ten-year lease for a new corporate headquarters and would be selling the land and buildings currently used for its headquarters. The non-current assets held for sale represent the net book value of the land of $1.7 million and buildings of $3.6 million , as of September 30, 2019 and June 30, 2019. No impairments were identified as of September 30, 2019. Accounting Standards Recently Adopted by the Company: Leases The Company adopted ASU 2016-02, "Leases (Topic 842)” and all subsequent ASUs that modified Topic 842 as of July 1, 2019 using the modified retrospective method and elected the option to not restate comparative periods in the year of adoption. The Company also elected the package of practical expedients that do not require reassessment of whether existing contracts are or contain leases, lease classification or initial direct costs. The Company has also made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. Under adoption of Topic 842, the Company recorded a Right of Use Asset and Lease Liability of $980.8 million and $993.7 million , respectively upon adoption. The difference between the assets and liabilities are attributable to the reclassification of certain existing lease-related assets and liabilities as an adjustment to the right-of-use assets. The Lease Liability reflects the present value of the Company's estimated future minimum lease payments over the lease term, which includes one option period as options that are reasonably assured of being exercised, discounted using a collateralized incremental borrowing rate. The decrease in the Right of Use Asset and Lease Liability from July 1, 2019 to September 30, 2019 was due to lease modifications. The accounting guidance for lessors remained largely unchanged from previous guidance, with the exception of the presentation of rent payments that the Company passes through to franchisees (lessees). Historically, these costs have been recorded on a net basis in the unaudited Condensed Consolidated Statements of Operations but are now presented on a gross basis upon adoption of the new guidance. The adoption of the new guidance resulted in the recognition of franchise rental income and rent expense of $31.4 million during the three months ended September 30, 2019. See Note 10 for further information about our transition to Topic 842 and the newly required disclosures. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	REVENUE RECOGNITION: Revenue Recognition and Deferred Revenue: Revenue recognized at point in time Company-owned salon revenues are recognized at the time when the services are provided. Product revenues for Company-owned salons are recognized when the guest receives and pays for the merchandise. Revenues from purchases made with gift cards are also recorded when the guest takes possession of the merchandise or services are provided. Gift cards issued by the Company are recorded as a liability (deferred revenue) upon sale and recognized as revenue upon redemption by the customer. Gift card breakage, the amount of gift cards which will not be redeemed, is recognized proportional to redemptions using estimates based on historical redemption patterns. Product sales by the Company to its franchisees are included within product revenues in the unaudited Condensed Consolidated Statement of Operations and recorded at the time product is delivered to the franchisee. Payment terms for franchisee product revenue are within 30 to 90 days of delivery. Revenue recognized over time Franchise revenues primarily include royalties, advertising fund fees, franchise fees and other fees. Royalty and advertising fund revenues represent sales-based royalties that are recognized in the period in which the sales occur. Generally, royalty and advertising fund revenue is billed and collected monthly in arrears. Advertising fund revenues and expenditures, which must be spent on marketing and related activities per the franchise agreements, are recorded on a gross basis within the unaudited Condensed Consolidated Statement of Operations. This increases both the gross amount of reported franchise revenue and site operating expense and generally has no impact on operating income and net income. Franchise fees are billed and received upon the signing of the franchise agreement. Recognition of these fees is deferred until the salon opening and is then recognized over the term of the franchise agreement, typically ten years . Franchise rental income is a result of the Company signing leases on behalf of franchisees and entering into a sublease arrangement with the franchisee. The Company recognizes franchise rental income and expense when it is due to the landlord. The following table disaggregates revenue by timing of revenue recognition and is reconciled to reportable segment revenues as follows: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Franchise Company-owned Franchise Company-owned Revenue recognized at a point in time: Service $ — $ 141,941 $ — $ 207,848 Product 13,105 32,551 15,629 41,962 Total revenue recognized at a point in time $ 13,105 $ 174,492 $ 15,629 $ 249,810 Revenue recognized over time: Royalty and other franchise fees $ 17,592 $ — $ 14,420 $ — Advertising fund fees 10,425 — 7,976 — Franchise rental income 31,424 — Total revenue recognized over time $ 59,441 $ — $ 22,396 $ — Total revenue $ 72,546 $ 174,492 $ 38,025 $ 249,810 Information about receivables, broker fees and deferred revenue subject to the amended revenue recognition guidance is as follows: September 30, June 30, Balance Sheet Classification (dollars in thousands) Receivables from contracts with customers, net $ 18,715 $ 23,210 Accounts receivable, net Broker fees $ 18,706 $ 17,819 Other assets Deferred revenue: Current Gift card liability $ 2,686 $ 3,050 Accrued expenses Deferred franchise fees unopened salons 99 193 Accrued expenses Deferred franchise fees open salons 4,748 4,164 Accrued expenses Total current deferred revenue $ 7,533 $ 7,407 Non-current Deferred franchise fees unopened salons $ 13,230 $ 15,173 Other non-current liabilities Deferred franchise fees open salons 28,546 24,194 Other non-current liabilities Total non-current deferred revenue $ 41,776 $ 39,367 Receivables relate primarily to payments due for royalties, franchise fees, advertising fees, franchise product sales and sales of salon services and product paid by credit card. The receivables balance is presented net of an allowance for expected losses (i.e., doubtful accounts), primarily related to receivables from franchisees. As of September 30, 2019 and June 30, 2019 , the balance in the allowance for doubtful accounts was approximately $2.0 million . Broker fees are the costs associated with using external brokers to identify new franchisees. These fees are paid upon the signing of the franchise agreement and recognized as General and Administrative expense over the term of the agreement. The following table is a rollforward of the broker fee balance for the periods indicated (in thousands): Balance as of June 30, 2019 $ 17,819 Additions 1,548 Amortization (661 ) Write-offs — Balance as of September 30, 2019 $ 18,706 Deferred revenue includes the gift card liability and deferred franchise fees for unopened salons and open salons. Gift card revenue for the three months ended September 30, 2019 and 2018 was $0.8 million and $1.0 million , respectively. Deferred franchise fees related to open salons are generally recognized on a straight-line basis over the term of the franchise agreement. Franchise fee revenue for the three months ended September 30, 2019 and 2018 was $1.2 million and $0.9 million , respectively. Estimated revenue expected to the recognized in the future related to deferred franchise fees for open salons as of September 30, 2019 is as follows (in thousands): Remainder of 2020 $ 3,327 2021 4,498 2022 4,378 2023 4,202 2024 3,967 Thereafter 12,922 Total $ 33,294

TBG RESTRUCTURING AND DISCONTIN

TBG RESTRUCTURING AND DISCONTINUED OPERATIONS	3 Months Ended
	Sep. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]
TBG RESTRUCTURING AND DISCONTINUED OPERATIONS	TBG RESTRUCTURING AND DISCONTINUED OPERATIONS: In October 2017, the Company sold substantially all its mall-based salon business in North America, representing 858 salons, to The Beautiful Group (TBG),who operated these locations as franchise locations until June 2019. In addition, the Company entered into a share purchase agreement for substantially all of its International segment, representing approximately 250 salons in the UK, with TBG who operates these locations as franchise locations. In June 2019, the Company entered into a settlement agreement with TBG regarding the US and Canadian salons, which, among other things, substitutes the master franchise agreement for a license agreement. The Company classified the results of its mall-based business and its International segment as discontinued operations for all periods presented in the Condensed Consolidated Statement of Operations. For the three months ended September 30, 2019 the Company recorded $1.5 million of TBG restructuring charges which relate to the Company assisting TBG with operating expenses to mitigate the risk of default associated with TBG's lease obligations where Regis has potential contingent liability. Included in discontinued operations for the three months ended September 30, 2019 and September 30, 2018 is insurance reserve benefits and professional fees, respectively. Other than the items presented in the Consolidated Statement of Cash Flows, there were no other significant non-cash operating activities or any significant non-cash investing activities related to discontinued operations for the three months ended September 30, 2019 and 2018 . The Company utilized the consolidation of variable interest entities guidance to determine whether or not TBG was a variable interest entity (VIE), and if so, whether the Company was the primary beneficiary of TBG. The Company concluded that TBG is a VIE, based on the fact that the equity investment at risk in TBG is not sufficient. The Company determined that it is not the primary beneficiary of TBG based on its exposure to the expected losses of TBG and as it is not the variable interest holder that is most closely associated within the relationship and the significance of the activities of TBG. The exposure to loss related to the Company's involvement with TBG is the guarantee of the operating leases. As of September 30, 2019, prior to any mitigation efforts which may be available, the Company remains liable for up to $35 million

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE: The Company’s basic earnings per share is calculated as net loss divided by weighted average common shares outstanding, excluding unvested outstanding restricted stock awards (RSAs), restricted stock units (RSUs) and stock-settled performance units (PSUs). The Company’s diluted earnings per share is calculated as net loss divided by weighted average common shares and common share equivalents outstanding, which includes shares issued under the Company’s stock-based compensation plans. Stock-based awards with exercise prices greater than the average market price of the Company’s common stock are excluded from the computation of diluted earnings per share. For the three months ended September 30, 2019 , 902,478 common stock equivalents of dilutive common stock were excluded in the diluted earnings per share calculations due to the net loss from continuing operations. For the three months ended September 30, 2018 , 930,666 common stock equivalents of dilutive common stock were excluded in the diluted earnings per share calculations due to the net loss from continuing operations. The computation of weighted average shares outstanding, assuming dilution, excluded 391,531 and 357,468

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Sep. 30, 2019
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	SHAREHOLDERS’ EQUITY: Stock-Based Employee Compensation: During the three months ended September 30, 2019 , the Company granted 186,076 restricted stock units (RSUs) and 51,018 performance-based restricted stock units (PSUs). The RSUs granted to employees during the three months ended September 30, 2019 vest in equal amounts over a three -year period subsequent to the grant date, cliff vest after a three -year period or cliff vest after a five -year period subsequent to the grant date. The PSUs granted to employees have a three -year performance period ending June 30, 2022 linked to the Company's stock price reaching a specified volume weighted average closing price for a 50 -day period that ends on June 30, 2021. The PSUs granted have a maximum vesting percentage of 200% based on the level of performance achieved for the respective award. Total compensation cost for stock-based payment arrangements totaling $1.8 million and $2.3 million for the three months ended September 30, 2019 and 2018 , respectively was recorded within general and administrative expense on the unaudited Condensed Consolidated Statement of Operations. Share Repurchases: During the three months ended September 30, 2019 and 2018, the Company repurchased 1.5 million and 1.1 million shares, respectively, for $26.4 million and $19.3 million , respectively, under a previously approved stock repurchase program. At September 30, 2019 , $54.6 million remains outstanding under the approved stock repurchase program.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES: A summary of income tax benefit and corresponding effective tax rates is as follows: For the Three Months Ended September 30, 2019 2018 (Dollars in thousands) Income tax benefit $ 2,856 $ 714 Effective tax rate 16.8 % 60.7 % The recorded tax provision and effective tax rate for the three months ended September 30, 2019 were different than what would normally be expected primarily due to the impact of the deferred tax valuation allowance and global intangible low-taxed income (“GILTI”). The Company includes GILTI as a current period expense when incurred. The recorded tax provision and effective tax rate for the three months ended September 30, 2018 were different than what would normally be expected primarily due to the impact of Tax Cuts and Jobs Act (“Tax Act”), state conformity of the new federal provisions and the deferred tax valuation allowance. The Company is no longer subject to IRS examinations for years before 2013. Furthermore, with limited exceptions, the Company is no longer subject to state and international income tax examinations by tax authorities for years before 2012.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES: The Company is a defendant in various lawsuits and claims arising out of the normal course of business. Like certain other large retail employers, the Company has been faced with allegations of purported class-wide consumer and wage and hour violations. Litigation is inherently unpredictable and the outcome of these matters cannot presently be determined. Although the actions are being vigorously defended, the Company could in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations in any particular period.

CASH, CASH EQUIVALETS AND RESTR

CASH, CASH EQUIVALETS AND RESTRICTED CASH	3 Months Ended
	Sep. 30, 2019
Cash and Cash Equivalents [Abstract]
CASH, CASH EQUIVALENTS AND RESTRICTED CASH	CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: The table below reconciles the cash and cash equivalents balances and restricted cash balances, recorded in other current assets from the unaudited Condensed Consolidated Balance Sheet to the amount of cash, cash equivalents and restricted cash reported on the unaudited Condensed Consolidated Statement of Cash flows: September 30, June 30, (Dollars in thousands) Cash and cash equivalents $ 58,902 $ 70,141 Restricted cash, included in other current assets (1) 21,724 22,238 Total cash, cash equivalents and restricted cash $ 80,626 $ 92,379 _______________________________________________________________________________ (1) Restricted cash within other current assets primarily relates to consolidated advertising cooperatives funds which can only be used to settle obligations of the respective cooperatives and contractual obligations to collateralize the Company's self-insurance programs.

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	3 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLES	GOODWILL AND OTHER INTANGIBLES: The table below contains details related to the Company's goodwill: Franchise Company-owned Consolidated (Dollars in thousands) Goodwill, net at June 30, 2019 $ 227,928 $ 117,790 $ 345,718 Translation rate adjustments (85 ) (299 ) (384 ) Derecognition related to sale of salon assets to franchisees (1) — (32,083 ) (32,083 ) Goodwill, net at September 30, 2019 $ 227,843 $ 85,408 $ 313,251 _______________________________________________________________________________ (1) Goodwill is derecognized for salons sold to franchisees with positive cash flows. The amount of goodwill derecognized is determined by a fraction (the numerator of which is the trailing-twelve months EBITDA of the salon being sold and the denominator of which is the estimated annualized EBITDA of the Company-owned reporting unit) that is applied to the total goodwill balance of the Company-owned reporting unit. The table below presents other intangible assets: September 30, 2019 June 30, 2019 Cost (1) Accumulated Amortization (1) Net Cost (1) Accumulated Amortization (1) Net (Dollars in thousands) Amortized intangible assets: Brand assets and trade names $ 6,856 $ (3,687 ) $ 3,169 $ 6,909 $ (3,659 ) $ 3,250 Franchise agreements 9,721 (8,088 ) 1,633 9,783 (8,057 ) 1,726 Lease intangibles 13,480 (10,226 ) 3,254 13,490 (10,065 ) 3,425 Other 881 (521 ) 360 883 (523 ) 360 $ 30,938 $ (22,522 ) $ 8,416 $ 31,065 $ (22,304 ) $ 8,761 _______________________________________________________________________________ (1) The change in the gross carrying value and accumulated amortization of other intangible assets is impacted by foreign currency.

RIGHT OF USE ASSET AND LEASE LI

RIGHT OF USE ASSET AND LEASE LIABILITIES	3 Months Ended
	Sep. 30, 2019
Leases [Abstract]
RIGHT OF USE ASSET AND LEASE LIABILITIES	RIGHT OF USE ASSET AND LEASE LIABILITIES At contract inception, the Company determines whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. If the contract provides the Company the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, the Company considers it to be, or contain, a lease. The Company leases its company-owned salons and some of its corporate facilities under operating leases. The original terms of the salon leases range from 1 to 20 years with many leases renewable for additional 5 to 10 year terms at the option of the Company. The Company also has variable lease payments that are based on sales levels. For most leases, the Company is required to pay real estate taxes and other occupancy expenses. Total rent expense includes the following: For the three months ended September 30, 2019 2018 (dollars in thousands) Minimum rent $ 19,561 $ 29,915 Percentage rent based on sales 1,298 1,052 Real estate taxes and other expenses 3,405 5,011 $ 24,264 $ 35,978 The Company also leases the premises in which the majority of its franchisees operate and has entered into corresponding sublease arrangements with franchisees. These leases, generally with terms of approximately five years , are expected to be renewed on expiration. All additional lease costs are passed through to the franchisees. Upon adopting Topic 842 the Company now records the rental payments due from franchisees as franchise rental income and the corresponding amounts owed to landlords as franchise rent expense in the Condensed Consolidated Statement of Operations. For the three months ended September 30, 2019 franchise rental income and franchise rent expense was $31.4 million . For company-owned and franchise salon operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. The right of use (ROU) asset is initially and subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, less any accrued lease payments and unamortized lease incentives received, if any. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Generally, the non-lease components such as real estate taxes and other occupancy expenses are separate from rent expense within the lease and not allocated to the lease liability. The discount rate used to determine the present value of the lease payments is the Company's estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as the interest rate implicit in the lease cannot generally be determined. The Company used the portfolio approach in applying the discount rate based on original lease term. The weighted average remaining lease term was 6.87 years and the weighted-average discount rate was 3.95 percent for all salon operating leases as of September 30, 2019. As of September 30, 2019, future operating lease commitments to be paid and received by the Company were as follows: Fiscal Year Leases for Franchise Salons Leases for Company-Owned Salons Corporate Leases Total Operating Leases Payments Sublease Income To Be Received From Franchisees Net Rent Commitments Remainder of 2020 $ 56,059 $ 91,328 $ 1,368 $ 148,755 $ (56,059 ) $ 92,696 2021 67,285 111,002 1,294 179,581 (67,285 ) 112,296 2022 59,388 99,345 172 158,905 (59,388 ) 99,517 2023 53,293 88,686 177 142,156 (53,293 ) 88,863 2024 48,224 79,070 183 127,477 (48,224 ) 79,253 Thereafter 125,524 194,746 821 321,091 (125,524 ) 195,567 Total future obligations $ 409,773 $ 664,177 $ 4,015 $ 1,077,965 $ (409,773 ) $ 668,192 Less amount representing interest 31,329 103,420 675 135,424 Present value of lease liabilities 378,444 560,757 3,340 942,541 Less: current lease liabilities 68,725 91,414 1,268 161,407 Long-term lease liabilities $ 309,719 $ 469,343 $ 2,072 $ 781,134 As of September 30, 2019, the Company had executed the lease for its new corporate headquarters which commences on October 1, 2019. The total expected lease payments of $13.5 million are not reflected in the tables above. The lease term is 10.75 years
RIGHT OF USE ASSET AND LEASE LIABILITIES	RIGHT OF USE ASSET AND LEASE LIABILITIES At contract inception, the Company determines whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. If the contract provides the Company the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, the Company considers it to be, or contain, a lease. The Company leases its company-owned salons and some of its corporate facilities under operating leases. The original terms of the salon leases range from 1 to 20 years with many leases renewable for additional 5 to 10 year terms at the option of the Company. The Company also has variable lease payments that are based on sales levels. For most leases, the Company is required to pay real estate taxes and other occupancy expenses. Total rent expense includes the following: For the three months ended September 30, 2019 2018 (dollars in thousands) Minimum rent $ 19,561 $ 29,915 Percentage rent based on sales 1,298 1,052 Real estate taxes and other expenses 3,405 5,011 $ 24,264 $ 35,978 The Company also leases the premises in which the majority of its franchisees operate and has entered into corresponding sublease arrangements with franchisees. These leases, generally with terms of approximately five years , are expected to be renewed on expiration. All additional lease costs are passed through to the franchisees. Upon adopting Topic 842 the Company now records the rental payments due from franchisees as franchise rental income and the corresponding amounts owed to landlords as franchise rent expense in the Condensed Consolidated Statement of Operations. For the three months ended September 30, 2019 franchise rental income and franchise rent expense was $31.4 million . For company-owned and franchise salon operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. The right of use (ROU) asset is initially and subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, less any accrued lease payments and unamortized lease incentives received, if any. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Generally, the non-lease components such as real estate taxes and other occupancy expenses are separate from rent expense within the lease and not allocated to the lease liability. The discount rate used to determine the present value of the lease payments is the Company's estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as the interest rate implicit in the lease cannot generally be determined. The Company used the portfolio approach in applying the discount rate based on original lease term. The weighted average remaining lease term was 6.87 years and the weighted-average discount rate was 3.95 percent for all salon operating leases as of September 30, 2019. As of September 30, 2019, future operating lease commitments to be paid and received by the Company were as follows: Fiscal Year Leases for Franchise Salons Leases for Company-Owned Salons Corporate Leases Total Operating Leases Payments Sublease Income To Be Received From Franchisees Net Rent Commitments Remainder of 2020 $ 56,059 $ 91,328 $ 1,368 $ 148,755 $ (56,059 ) $ 92,696 2021 67,285 111,002 1,294 179,581 (67,285 ) 112,296 2022 59,388 99,345 172 158,905 (59,388 ) 99,517 2023 53,293 88,686 177 142,156 (53,293 ) 88,863 2024 48,224 79,070 183 127,477 (48,224 ) 79,253 Thereafter 125,524 194,746 821 321,091 (125,524 ) 195,567 Total future obligations $ 409,773 $ 664,177 $ 4,015 $ 1,077,965 $ (409,773 ) $ 668,192 Less amount representing interest 31,329 103,420 675 135,424 Present value of lease liabilities 378,444 560,757 3,340 942,541 Less: current lease liabilities 68,725 91,414 1,268 161,407 Long-term lease liabilities $ 309,719 $ 469,343 $ 2,072 $ 781,134 As of September 30, 2019, the Company had executed the lease for its new corporate headquarters which commences on October 1, 2019. The total expected lease payments of $13.5 million are not reflected in the tables above. The lease term is 10.75 years

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS	3 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
FINANCING ARRANGEMENTS	FINANCING ARRANGEMENTS: The Company’s long-term debt consists of the following: Revolving Credit Facility Maturity Date Interest Rate September 30, June 30, (Fiscal Year) (Dollars in thousands) Revolving credit facility 2023 3.69% $ 90,000 $ 90,000 As of September 30, 2019 and June 30, 2019 , the Company has $ 90 million of outstanding borrowings under a $295.0 million revolving credit facility. At September 30, 2019 and June 30, 2019 , the Company has outstanding standby letters of credit under the revolving credit facility of $21.5 million , primarily related to the Company's self-insurance program. The unused available credit under the facility was $183.5 million as of September 30, 2019 and June 30, 2019. Amounts outstanding under the revolving credit facility are due at maturity in March 2023. Sale and Leaseback Transaction The Company’s long-term financing liabilities consists of the following: Maturity Date Interest Rate September 30, June 30, (Fiscal Year) (Dollars in thousands) Financial liability- Salt Lake City Distribution Center 2034 3.30% $ 17,187 $ 17,354 Financial liability- Chattanooga Distribution Center 2034 3.70% 11,532 11,556 Long-term financing liability $ 28,719 $ 28,910 In fiscal year 2019, the Company sold its Salt Lake City and Chattanooga Distribution Centers to an unrelated party. The Company is leasing the properties back for 15 years with the option to renew. As the Company plans to lease the property for more than 75% of its economic life, the sales proceeds received from the buyer-lessor are recognized as a financial liability. This financial liability is reduced based on the rental payments made under the lease that are allocated between principal and interest. As of September 30, 2019 , the current portion of the Company’s financing liability was $0.9 million which was recorded in accrued expenses on the unaudited Condensed Consolidated Balance Sheet. The weighted average remaining lease term was 14.4 years and the weighted-average discount rate was 3.46% percent for financing leases as of September 30, 2019. As of September 30, 2019, future lease payments due are as follows: Fiscal Year Salt Lake City Chattanooga Remainder of 2020 $ 818 $ 604 2021 1,157 817 2022 1,171 829 2023 1,186 842 2024 1,200 854 Thereafter 11,952 9,282 Total $ 17,484 $ 13,228 The financing liability does not include interest. Future lease payments above are due per the lease agreement and include embedded interest. Therefore, the total payments do not equal the financing liability. As of September 30, 2019, total interest expense for financing leases was $0.3 million . The Company was in compliance with all covenants and requirements of its financing arrangements as of and during the three months ended September 30, 2019 .

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS: Fair value measurements are categorized into one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs available at the measurement date, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). Assets and Liabilities Measured at Fair Value on a Recurring Basis As of September 30, 2019 and June 30, 2019 , the estimated fair value of the Company’s cash, cash equivalents, restricted cash, receivables, accounts payable, debt and long-term financial liabilities approximated their carrying values. The estimated fair values of the Company's debt and long-term financial liability are based on Level 2 inputs. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We measure certain assets, including the Company’s equity method investments, tangible fixed and other assets and goodwill, at fair value on a nonrecurring basis when they are deemed to be other than temporarily impaired. The fair values of these assets are determined, when applicable, based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. The following impairments were based on fair values using Level 3 inputs: For the Three Months Ended September 30, 2019 2018 (Dollars in thousands) Long-lived assets $ 1,517 $ 1,831

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION: Segment information is prepared on the same basis that the chief operating decision maker reviews financial information for operational decision-making purposes. The Company’s reportable operating segments consisted of the following salons: September 30, 2019 June 30, 2019 FRANCHISE SALONS: SmartStyle/Cost Cutters in Walmart Stores 825 615 Supercuts 2,456 2,340 Signature Style 948 766 Total North American Salons 4,229 3,721 Total International Salons (1) 227 230 Total Franchise Salons 4,456 3,951 as a percent of total Company-owned and Franchise salons 63.6 % 56.0 % COMPANY-OWNED SALONS: SmartStyle/Cost Cutters in Walmart Stores 1,333 1,550 Supercuts 312 403 Signature Style 906 1,155 Total Company-owned salons 2,551 3,108 as a percent of total Company-owned and Franchise salons 36.4 % 44.0 % OWNERSHIP INTEREST LOCATIONS: Equity ownership interest locations 85 86 Grand Total, System-Wide 7,092 7,145 ____________________________________ (1) Canadian and Puerto Rican salons are included in the North American salon totals. (2) As of September 30, 2019 , the Company-owned operating segment is comprised primarily of SmartStyle ® , Supercuts ® , Cost Cutters ® , and other regional trade names and the Franchise operating segment is comprised primarily of Supercuts ® , SmartStyle ® , Cost Cutters ® , First Choice Haircutters ® , Roosters ® and Magicuts ® concepts. Financial information concerning the Company's reportable operating segments is shown in the following table: For the Three Months Ended September 30, 2019 Franchise Company - owned Corporate Consolidated (Dollars in thousands) Revenues: Service $ — $ 141,941 $ — $ 141,941 Product 13,105 32,551 — 45,656 Royalties and fees 28,017 — — 28,017 Franchise rental income 31,424 — — 31,424 72,546 174,492 — 247,038 Operating expenses: Cost of service — 90,482 — 90,482 Cost of product 10,280 16,047 — 26,327 Site operating expenses 10,426 22,516 — 32,942 General and administrative 8,357 10,150 22,118 40,625 Rent 190 23,789 285 24,264 Franchise rent expense 31,424 — — 31,424 Depreciation and amortization 160 6,107 3,113 9,380 TBG restructuring (Note 3) 1,500 — — 1,500 Total operating expenses 62,337 169,091 25,516 256,944 Operating income (loss) 10,209 5,401 (25,516 ) (9,906 ) Other (expense) income: Interest expense — — (1,439 ) (1,439 ) Loss on sale of salon assets to franchisees, net — — (5,860 ) (5,860 ) Interest income and other, net — — 171 171 Income (loss) from continuing operations before income taxes $ 10,209 $ 5,401 $ (32,644 ) $ (17,034 ) For the Three Months Ended September 30, 2018 Franchise Company-owned Corporate Consolidated (Dollars in thousands) Revenues: Service $ — $ 207,848 $ — $ 207,848 Product 15,629 41,962 — 57,591 Royalties and fees 22,396 — — 22,396 38,025 249,810 — 287,835 Operating expenses: Cost of service — 121,497 — 121,497 Cost of product 12,413 19,768 — 32,181 Site operating expenses 7,976 28,845 — 36,821 General and administrative 7,664 16,381 23,682 47,727 Rent 94 35,686 198 35,978 Depreciation and amortization 158 8,057 1,987 10,202 Total operating expenses 28,305 230,234 25,867 284,406 Operating income (loss) 9,720 19,576 (25,867 ) 3,429 Other (expense) income: Interest expense — — (1,006 ) (1,006 ) Loss on sale of salon assets to franchisees, net — — (3,960 ) (3,960 ) Interest income and other, net — — 360 360 Income (loss) from continuing operations before income taxes $ 9,720 $ 19,576 $ (30,473 ) $ (1,177 )

BASIS OF PRESENTATION OF UNAU_2

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Goodwill	The Company assesses goodwill impairment on an annual basis, during the Company’s fourth fiscal quarter, and between annual assessments if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount. An interim impairment analysis was not required in the three months ended September 30, 2019. The Company performs its annual impairment assessment as of April 30. For the fiscal year 2019 annual impairment assessment, due to the transformational efforts completed during the year, the Company elected to forgo the optional Step 0 assessment and performed the quantitative impairment analysis on the Franchise and Company-owned reporting units. The Company compared the carrying value of the reporting units, including goodwill, to their estimated fair value. The results of these assessments indicated that the estimated fair value of the Company's reporting units exceeded their carrying value. The Franchise reporting unit had substantial headroom and the Company-owned reporting unit had headroom of approximately 20% . The fair value of the Company-owned reporting unit was determined based on a discounted cash flow analysis. The key assumptions used in determining fair value were the number and pace of salons sold to franchisees and proceeds from salon sales. We selected the assumptions by considering our historical financial performance and trends, historical salon sale proceeds and estimated future salon sale activities. The preparation of our fair value estimate includes uncertain factors and requires significant judgments and estimates which are subject to change. There are a number of uncertain factors or events that exist which may result in a future triggering event and require an interim impairment analysis with respect to the carrying value of goodwill for the Company-owned reporting unit prior to our annual assessment. These internal and external factors include but are not limited to the following: • Changes in the company-owned salon strategy, • Salon closures or other restructuring, • Franchise expansion and sales opportunities, • Future market earnings multiples deterioration, • Our financial performance falls short of our projections due to internal operating factors, • Economic recession, • Reduced salon traffic, • Deterioration of industry trends, • Increased competition, • Inability to reduce general and administrative expenses as company-owned salon count potentially decreases, • Other factors causing our cash flow to deteriorate. If the triggering event analysis indicates the fair value of the Company-owned reporting unit has potentially fallen below more than the 20% headroom, we may be required to perform an updated impairment assessment which may result in a non-cash impairment charge to reduce the carrying value of goodwill. Assessing goodwill for impairment requires management to make assumptions and to apply judgment, including forecasting future sales and expenses, and selecting appropriate discount rates, which can be affected by economic conditions and other factors that can be difficult to predict. The Company does not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions it uses to calculate impairment losses of goodwill. However, if actual results are not consistent with the estimates and assumptions used in the calculations, or if there are significant changes to the Company's planned strategy for company-owned salons, the Company may be exposed to future impairment losses that could be material.
Accounting Standards	Leases The Company adopted ASU 2016-02, "Leases (Topic 842)” and all subsequent ASUs that modified Topic 842 as of July 1, 2019 using the modified retrospective method and elected the option to not restate comparative periods in the year of adoption. The Company also elected the package of practical expedients that do not require reassessment of whether existing contracts are or contain leases, lease classification or initial direct costs. The Company has also made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. Under adoption of Topic 842, the Company recorded a Right of Use Asset and Lease Liability of $980.8 million and $993.7 million , respectively upon adoption. The difference between the assets and liabilities are attributable to the reclassification of certain existing lease-related assets and liabilities as an adjustment to the right-of-use assets. The Lease Liability reflects the present value of the Company's estimated future minimum lease payments over the lease term, which includes one option period as options that are reasonably assured of being exercised, discounted using a collateralized incremental borrowing rate. The decrease in the Right of Use Asset and Lease Liability from July 1, 2019 to September 30, 2019 was due to lease modifications. The accounting guidance for lessors remained largely unchanged from previous guidance, with the exception of the presentation of rent payments that the Company passes through to franchisees (lessees). Historically, these costs have been recorded on a net basis in the unaudited Condensed Consolidated Statements of Operations but are now presented on a gross basis upon adoption of the new guidance. The adoption of the new guidance resulted in the recognition of franchise rental income and rent expense of $31.4 million during the three months ended September 30, 2019. See Note 10 for further information about our transition to Topic 842 and the newly required disclosures. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
Revenue Recognition	Revenue Recognition and Deferred Revenue: Revenue recognized at point in time Company-owned salon revenues are recognized at the time when the services are provided. Product revenues for Company-owned salons are recognized when the guest receives and pays for the merchandise. Revenues from purchases made with gift cards are also recorded when the guest takes possession of the merchandise or services are provided. Gift cards issued by the Company are recorded as a liability (deferred revenue) upon sale and recognized as revenue upon redemption by the customer. Gift card breakage, the amount of gift cards which will not be redeemed, is recognized proportional to redemptions using estimates based on historical redemption patterns. Product sales by the Company to its franchisees are included within product revenues in the unaudited Condensed Consolidated Statement of Operations and recorded at the time product is delivered to the franchisee. Payment terms for franchisee product revenue are within 30 to 90 days of delivery. Revenue recognized over time Franchise revenues primarily include royalties, advertising fund fees, franchise fees and other fees. Royalty and advertising fund revenues represent sales-based royalties that are recognized in the period in which the sales occur. Generally, royalty and advertising fund revenue is billed and collected monthly in arrears. Advertising fund revenues and expenditures, which must be spent on marketing and related activities per the franchise agreements, are recorded on a gross basis within the unaudited Condensed Consolidated Statement of Operations. This increases both the gross amount of reported franchise revenue and site operating expense and generally has no impact on operating income and net income. Franchise fees are billed and received upon the signing of the franchise agreement. Recognition of these fees is deferred until the salon opening and is then recognized over the term of the franchise agreement, typically ten years
Fair Value Measurements	We measure certain assets, including the Company’s equity method investments, tangible fixed and other assets and goodwill, at fair value on a nonrecurring basis when they are deemed to be other than temporarily impaired. The fair values of these assets are determined, when applicable, based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	The following table disaggregates revenue by timing of revenue recognition and is reconciled to reportable segment revenues as follows: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Franchise Company-owned Franchise Company-owned Revenue recognized at a point in time: Service $ — $ 141,941 $ — $ 207,848 Product 13,105 32,551 15,629 41,962 Total revenue recognized at a point in time $ 13,105 $ 174,492 $ 15,629 $ 249,810 Revenue recognized over time: Royalty and other franchise fees $ 17,592 $ — $ 14,420 $ — Advertising fund fees 10,425 — 7,976 — Franchise rental income 31,424 — Total revenue recognized over time $ 59,441 $ — $ 22,396 $ — Total revenue $ 72,546 $ 174,492 $ 38,025 $ 249,810
Schedule of receivables, broker fees and deferred revenue	Information about receivables, broker fees and deferred revenue subject to the amended revenue recognition guidance is as follows: September 30, June 30, Balance Sheet Classification (dollars in thousands) Receivables from contracts with customers, net $ 18,715 $ 23,210 Accounts receivable, net Broker fees $ 18,706 $ 17,819 Other assets Deferred revenue: Current Gift card liability $ 2,686 $ 3,050 Accrued expenses Deferred franchise fees unopened salons 99 193 Accrued expenses Deferred franchise fees open salons 4,748 4,164 Accrued expenses Total current deferred revenue $ 7,533 $ 7,407 Non-current Deferred franchise fees unopened salons $ 13,230 $ 15,173 Other non-current liabilities Deferred franchise fees open salons 28,546 24,194 Other non-current liabilities Total non-current deferred revenue $ 41,776 $ 39,367
Broker fees	The following table is a rollforward of the broker fee balance for the periods indicated (in thousands): Balance as of June 30, 2019 $ 17,819 Additions 1,548 Amortization (661 ) Write-offs — Balance as of September 30, 2019 $ 18,706
Estimated revenue expected to be recognized	Estimated revenue expected to the recognized in the future related to deferred franchise fees for open salons as of September 30, 2019 is as follows (in thousands): Remainder of 2020 $ 3,327 2021 4,498 2022 4,378 2023 4,202 2024 3,967 Thereafter 12,922 Total $ 33,294

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Summary of income tax benefit (expense) and corresponding effective tax rates	A summary of income tax benefit and corresponding effective tax rates is as follows: For the Three Months Ended September 30, 2019 2018 (Dollars in thousands) Income tax benefit $ 2,856 $ 714 Effective tax rate 16.8 % 60.7 %

CASH, CASH EQUIVALETS AND RES_2

CASH, CASH EQUIVALETS AND RESTRICTED CASH (Tables)	3 Months Ended
	Sep. 30, 2019
Cash and Cash Equivalents [Abstract]
Schedule of cash and cash equivalents	The table below reconciles the cash and cash equivalents balances and restricted cash balances, recorded in other current assets from the unaudited Condensed Consolidated Balance Sheet to the amount of cash, cash equivalents and restricted cash reported on the unaudited Condensed Consolidated Statement of Cash flows: September 30, June 30, (Dollars in thousands) Cash and cash equivalents $ 58,902 $ 70,141 Restricted cash, included in other current assets (1) 21,724 22,238 Total cash, cash equivalents and restricted cash $ 80,626 $ 92,379 _______________________________________________________________________________ (1) Restricted cash within other current assets primarily relates to consolidated advertising cooperatives funds which can only be used to settle obligations of the respective cooperatives and contractual obligations to collateralize the Company's self-insurance programs.
Schedule of restricted cash and cash equivalents	The table below reconciles the cash and cash equivalents balances and restricted cash balances, recorded in other current assets from the unaudited Condensed Consolidated Balance Sheet to the amount of cash, cash equivalents and restricted cash reported on the unaudited Condensed Consolidated Statement of Cash flows: September 30, June 30, (Dollars in thousands) Cash and cash equivalents $ 58,902 $ 70,141 Restricted cash, included in other current assets (1) 21,724 22,238 Total cash, cash equivalents and restricted cash $ 80,626 $ 92,379 _______________________________________________________________________________ (1) Restricted cash within other current assets primarily relates to consolidated advertising cooperatives funds which can only be used to settle obligations of the respective cooperatives and contractual obligations to collateralize the Company's self-insurance programs.

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	3 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of recorded goodwill	The table below contains details related to the Company's goodwill: Franchise Company-owned Consolidated (Dollars in thousands) Goodwill, net at June 30, 2019 $ 227,928 $ 117,790 $ 345,718 Translation rate adjustments (85 ) (299 ) (384 ) Derecognition related to sale of salon assets to franchisees (1) — (32,083 ) (32,083 ) Goodwill, net at September 30, 2019 $ 227,843 $ 85,408 $ 313,251 _______________________________________________________________________________ (1) Goodwill is derecognized for salons sold to franchisees with positive cash flows. The amount of goodwill derecognized is determined by a fraction (the numerator of which is the trailing-twelve months EBITDA of the salon being sold and the denominator of which is the estimated annualized EBITDA of the Company-owned reporting unit) that is applied to the total goodwill balance of the Company-owned reporting unit.
Schedule of other intangible assets	The table below presents other intangible assets: September 30, 2019 June 30, 2019 Cost (1) Accumulated Amortization (1) Net Cost (1) Accumulated Amortization (1) Net (Dollars in thousands) Amortized intangible assets: Brand assets and trade names $ 6,856 $ (3,687 ) $ 3,169 $ 6,909 $ (3,659 ) $ 3,250 Franchise agreements 9,721 (8,088 ) 1,633 9,783 (8,057 ) 1,726 Lease intangibles 13,480 (10,226 ) 3,254 13,490 (10,065 ) 3,425 Other 881 (521 ) 360 883 (523 ) 360 $ 30,938 $ (22,522 ) $ 8,416 $ 31,065 $ (22,304 ) $ 8,761 _______________________________________________________________________________ (1) The change in the gross carrying value and accumulated amortization of other intangible assets is impacted by foreign currency.

RIGHT OF USE ASSET AND LEASE _2

RIGHT OF USE ASSET AND LEASE LIABILITIES (Tables)	3 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of Real Estate Taxes and Other Occupancy Expenses	For most leases, the Company is required to pay real estate taxes and other occupancy expenses. Total rent expense includes the following: For the three months ended September 30, 2019 2018 (dollars in thousands) Minimum rent $ 19,561 $ 29,915 Percentage rent based on sales 1,298 1,052 Real estate taxes and other expenses 3,405 5,011 $ 24,264 $ 35,978
Lessor, Future Operating Lease Commitments	As of September 30, 2019, future operating lease commitments to be paid and received by the Company were as follows: Fiscal Year Leases for Franchise Salons Leases for Company-Owned Salons Corporate Leases Total Operating Leases Payments Sublease Income To Be Received From Franchisees Net Rent Commitments Remainder of 2020 $ 56,059 $ 91,328 $ 1,368 $ 148,755 $ (56,059 ) $ 92,696 2021 67,285 111,002 1,294 179,581 (67,285 ) 112,296 2022 59,388 99,345 172 158,905 (59,388 ) 99,517 2023 53,293 88,686 177 142,156 (53,293 ) 88,863 2024 48,224 79,070 183 127,477 (48,224 ) 79,253 Thereafter 125,524 194,746 821 321,091 (125,524 ) 195,567 Total future obligations $ 409,773 $ 664,177 $ 4,015 $ 1,077,965 $ (409,773 ) $ 668,192 Less amount representing interest 31,329 103,420 675 135,424 Present value of lease liabilities 378,444 560,757 3,340 942,541 Less: current lease liabilities 68,725 91,414 1,268 161,407 Long-term lease liabilities $ 309,719 $ 469,343 $ 2,072 $ 781,134 As of September 30, 2019, the Company had executed the lease for its new corporate headquarters which commences on October 1, 2019. The total expected lease payments of $13.5 million are not reflected in the tables above. The lease term is 10.75 years
Lessee, Future Operating Lease Commitments	As of September 30, 2019, future operating lease commitments to be paid and received by the Company were as follows: Fiscal Year Leases for Franchise Salons Leases for Company-Owned Salons Corporate Leases Total Operating Leases Payments Sublease Income To Be Received From Franchisees Net Rent Commitments Remainder of 2020 $ 56,059 $ 91,328 $ 1,368 $ 148,755 $ (56,059 ) $ 92,696 2021 67,285 111,002 1,294 179,581 (67,285 ) 112,296 2022 59,388 99,345 172 158,905 (59,388 ) 99,517 2023 53,293 88,686 177 142,156 (53,293 ) 88,863 2024 48,224 79,070 183 127,477 (48,224 ) 79,253 Thereafter 125,524 194,746 821 321,091 (125,524 ) 195,567 Total future obligations $ 409,773 $ 664,177 $ 4,015 $ 1,077,965 $ (409,773 ) $ 668,192 Less amount representing interest 31,329 103,420 675 135,424 Present value of lease liabilities 378,444 560,757 3,340 942,541 Less: current lease liabilities 68,725 91,414 1,268 161,407 Long-term lease liabilities $ 309,719 $ 469,343 $ 2,072 $ 781,134

FINANCING ARRANGEMENTS (Tables)

FINANCING ARRANGEMENTS (Tables)	3 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of long-term debt	Revolving Credit Facility Maturity Date Interest Rate September 30, June 30, (Fiscal Year) (Dollars in thousands) Revolving credit facility 2023 3.69% $ 90,000 $ 90,000
Schedule of long-term financial liability	The Company’s long-term financing liabilities consists of the following: Maturity Date Interest Rate September 30, June 30, (Fiscal Year) (Dollars in thousands) Financial liability- Salt Lake City Distribution Center 2034 3.30% $ 17,187 $ 17,354 Financial liability- Chattanooga Distribution Center 2034 3.70% 11,532 11,556 Long-term financing liability $ 28,719 $ 28,910
Schedule of future lease payments due	As of September 30, 2019, future lease payments due are as follows: Fiscal Year Salt Lake City Chattanooga Remainder of 2020 $ 818 $ 604 2021 1,157 817 2022 1,171 829 2023 1,186 842 2024 1,200 854 Thereafter 11,952 9,282 Total $ 17,484 $ 13,228

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of fair value impairments	The following impairments were based on fair values using Level 3 inputs: For the Three Months Ended September 30, 2019 2018 (Dollars in thousands) Long-lived assets $ 1,517 $ 1,831

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of reportable operating segment salons	The Company’s reportable operating segments consisted of the following salons: September 30, 2019 June 30, 2019 FRANCHISE SALONS: SmartStyle/Cost Cutters in Walmart Stores 825 615 Supercuts 2,456 2,340 Signature Style 948 766 Total North American Salons 4,229 3,721 Total International Salons (1) 227 230 Total Franchise Salons 4,456 3,951 as a percent of total Company-owned and Franchise salons 63.6 % 56.0 % COMPANY-OWNED SALONS: SmartStyle/Cost Cutters in Walmart Stores 1,333 1,550 Supercuts 312 403 Signature Style 906 1,155 Total Company-owned salons 2,551 3,108 as a percent of total Company-owned and Franchise salons 36.4 % 44.0 % OWNERSHIP INTEREST LOCATIONS: Equity ownership interest locations 85 86 Grand Total, System-Wide 7,092 7,145 ____________________________________ (1) Canadian and Puerto Rican salons are included in the North American salon totals. (2) As of September 30, 2019 , the Company-owned operating segment is comprised primarily of SmartStyle ® , Supercuts ® , Cost Cutters ® , and other regional trade names and the Franchise operating segment is comprised primarily of Supercuts ® , SmartStyle ® , Cost Cutters ® , First Choice Haircutters ® , Roosters ® and Magicuts ® concepts.
Schedule of summarized financial information of reportable operating segments	Financial information concerning the Company's reportable operating segments is shown in the following table: For the Three Months Ended September 30, 2019 Franchise Company - owned Corporate Consolidated (Dollars in thousands) Revenues: Service $ — $ 141,941 $ — $ 141,941 Product 13,105 32,551 — 45,656 Royalties and fees 28,017 — — 28,017 Franchise rental income 31,424 — — 31,424 72,546 174,492 — 247,038 Operating expenses: Cost of service — 90,482 — 90,482 Cost of product 10,280 16,047 — 26,327 Site operating expenses 10,426 22,516 — 32,942 General and administrative 8,357 10,150 22,118 40,625 Rent 190 23,789 285 24,264 Franchise rent expense 31,424 — — 31,424 Depreciation and amortization 160 6,107 3,113 9,380 TBG restructuring (Note 3) 1,500 — — 1,500 Total operating expenses 62,337 169,091 25,516 256,944 Operating income (loss) 10,209 5,401 (25,516 ) (9,906 ) Other (expense) income: Interest expense — — (1,439 ) (1,439 ) Loss on sale of salon assets to franchisees, net — — (5,860 ) (5,860 ) Interest income and other, net — — 171 171 Income (loss) from continuing operations before income taxes $ 10,209 $ 5,401 $ (32,644 ) $ (17,034 ) For the Three Months Ended September 30, 2018 Franchise Company-owned Corporate Consolidated (Dollars in thousands) Revenues: Service $ — $ 207,848 $ — $ 207,848 Product 15,629 41,962 — 57,591 Royalties and fees 22,396 — — 22,396 38,025 249,810 — 287,835 Operating expenses: Cost of service — 121,497 — 121,497 Cost of product 12,413 19,768 — 32,181 Site operating expenses 7,976 28,845 — 36,821 General and administrative 7,664 16,381 23,682 47,727 Rent 94 35,686 198 35,978 Depreciation and amortization 158 8,057 1,987 10,202 Total operating expenses 28,305 230,234 25,867 284,406 Operating income (loss) 9,720 19,576 (25,867 ) 3,429 Other (expense) income: Interest expense — — (1,006 ) (1,006 ) Loss on sale of salon assets to franchisees, net — — (3,960 ) (3,960 ) Interest income and other, net — — 360 360 Income (loss) from continuing operations before income taxes $ 9,720 $ 19,576 $ (30,473 ) $ (1,177 )

BASIS OF PRESENTATION OF UNAU_3

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Goodwill (Details) $ in Thousands	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Goodwill	$ 313,251	$ 345,718
Headroom	0.20
Franchise
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Goodwill	$ 227,843	227,928
Company-owned
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Goodwill	$ 85,408	$ 117,790

BASIS OF PRESENTATION OF UNAU_4

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Non-Current Assets Held for Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019
Long Lived Assets Held-for-sale [Line Items]
Lease term			10 years
Long term assets held for sale	$ 5,276	$ 5,276
Land
Long Lived Assets Held-for-sale [Line Items]
Long term assets held for sale	1,700	1,700,000
Building
Long Lived Assets Held-for-sale [Line Items]
Long term assets held for sale	$ 3,600	$ 3,600,000

BASIS OF PRESENTATION OF UNAU_5

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Standards Recently Adopted by the Company (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Jul. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right of use asset	$ 930,784
Lease liability	942,541
Lease income	31,424
Lease expense	$ 31,400
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right of use asset		$ 980,800
Lease liability		$ 993,700

REVENUE RECOGNITION Revenue Rec

REVENUE RECOGNITION Revenue Recognized (Details)	3 Months Ended
	Sep. 30, 2019
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Performance obligations expected to be satisfied, expected timing	30 to 90 days
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Performance obligations expected to be satisfied, expected timing	ten years

REVENUE RECOGNITION Disaggregat

REVENUE RECOGNITION Disaggregation of Revenue by Timing (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Franchise rental income	$ 31,424
Total Revenues	247,038	$ 287,835
Operating Segments | Franchise
Disaggregation of Revenue [Line Items]
Franchise rental income	31,424
Total Revenues	72,546	38,025
Operating Segments | Company-owned
Disaggregation of Revenue [Line Items]
Franchise rental income	0
Total Revenues	174,492	249,810
Service
Disaggregation of Revenue [Line Items]
Revenues	141,941	207,848
Service | Operating Segments | Franchise
Disaggregation of Revenue [Line Items]
Revenues	0	0
Service | Operating Segments | Company-owned
Disaggregation of Revenue [Line Items]
Revenues	141,941	207,848
Product
Disaggregation of Revenue [Line Items]
Revenues	45,656	57,591
Product | Operating Segments | Franchise
Disaggregation of Revenue [Line Items]
Revenues	13,105	15,629
Product | Operating Segments | Company-owned
Disaggregation of Revenue [Line Items]
Revenues	32,551	41,962
Royalty and other franchise fees
Disaggregation of Revenue [Line Items]
Revenues	28,017	22,396
Royalty and other franchise fees | Operating Segments | Franchise
Disaggregation of Revenue [Line Items]
Revenues	28,017	22,396
Royalty and other franchise fees | Operating Segments | Company-owned
Disaggregation of Revenue [Line Items]
Revenues	0	0
Revenue recognized at a point in time | Operating Segments | Franchise
Disaggregation of Revenue [Line Items]
Revenues	13,105	15,629
Revenue recognized at a point in time | Operating Segments | Company-owned
Disaggregation of Revenue [Line Items]
Revenues	174,492	249,810
Revenue recognized at a point in time | Service | Operating Segments | Franchise
Disaggregation of Revenue [Line Items]
Revenues	0	0
Revenue recognized at a point in time | Service | Operating Segments | Company-owned
Disaggregation of Revenue [Line Items]
Revenues	141,941	207,848
Revenue recognized at a point in time | Product | Operating Segments | Franchise
Disaggregation of Revenue [Line Items]
Revenues	13,105
Revenue recognized at a point in time | Product | Operating Segments | Company-owned
Disaggregation of Revenue [Line Items]
Revenues	32,551	41,962
Revenue recognized over time | Operating Segments | Franchise
Disaggregation of Revenue [Line Items]
Franchise rental income	31,424
Total Revenues	59,441	22,396
Revenue recognized over time | Operating Segments | Company-owned
Disaggregation of Revenue [Line Items]
Franchise rental income	0
Total Revenues	0	0
Revenue recognized over time | Royalty and other franchise fees | Operating Segments | Franchise
Disaggregation of Revenue [Line Items]
Revenues	17,592	14,420
Revenue recognized over time | Royalty and other franchise fees | Operating Segments | Company-owned
Disaggregation of Revenue [Line Items]
Revenues	0	0
Revenue recognized over time | Advertising fund fees | Operating Segments | Franchise
Disaggregation of Revenue [Line Items]
Revenues	10,425	7,976
Revenue recognized over time | Advertising fund fees | Operating Segments | Company-owned
Disaggregation of Revenue [Line Items]
Revenues	$ 0	$ 0

REVENUE RECOGNITION Receivables

REVENUE RECOGNITION Receivables, Broker Fees and Deferred Revenue (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Receivables from contracts with customers, net	$ 18,715	$ 23,210
Broker fees	18,706	17,819
Deferred revenue
Current	7,533	7,407
Non-current	41,776	39,367
Gift card liability
Deferred revenue
Current	2,686	3,050
Deferred franchise fees unopened salons
Deferred revenue
Current	99	193
Non-current	13,230	15,173
Deferred franchise fees open salons
Deferred revenue
Current	4,748	4,164
Non-current	$ 28,546	$ 24,194

REVENUE RECOGNITION Additional

REVENUE RECOGNITION Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Allowance for doubtful accounts	$ 2		$ 2
Gift Cards
Disaggregation of Revenue [Line Items]
Revenues	0.8	$ 1
Franchise Fees
Disaggregation of Revenue [Line Items]
Revenues	$ 1.2	$ 0.9

REVENUE RECOGNITION Broker Fee

REVENUE RECOGNITION Broker Fee Balance (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Change In Deferred Costs [Roll Forward]
Balance as of June 30, 2019	$ 17,819
Additions	1,548
Amortization	(661)
Write-offs	0
Balance as of September 30, 2019	$ 18,706

REVENUE RECOGNITION Future Esti

REVENUE RECOGNITION Future Estimated Expected Revenue (Details) $ in Thousands	Sep. 30, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 33,294
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 3,327
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, expected timing	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 4,498
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 4,378
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 4,202
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 3,967
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 12,922
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, expected timing

TBG RESTRUCTURING AND DISCONT_2

TBG RESTRUCTURING AND DISCONTINUED OPERATIONS Additional Information (Details) $ in Millions	3 Months Ended
	Sep. 30, 2019USD ($)salon	Jun. 30, 2019salon	Oct. 31, 2017salon
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of stores	7,092	7,145
Salon lease commitments | $	$ 35
TBG Mall Restructuring
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Restructuring charges | $	$ 1.5
North America | Facility Closing
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of stores			858
United Kingdom | Facility Closing
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of stores			250

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - shares	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock equivalents included in the diluted earnings per share calculation (in shares)	902,478	930,666
Equity Based Compensation Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Awards excluded from diluted earnings per share computation (in shares)	391,531	357,468

SHAREHOLDERS' EQUITY Stock-Base

SHAREHOLDERS' EQUITY Stock-Based Employee Compensation, Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 1.8	$ 2.3
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock granted (in shares)	186,076
Restricted stock units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Restricted stock units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Restricted stock units | Tranche 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Restricted stock units | Tranche 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Restricted stock units | Tranche 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock granted (in shares)	51,018
Threshold trading days	50 days
Performance-based restricted stock units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Performance-based restricted stock units | Tranche 1 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	200.00%

SHAREHOLDERS' EQUITY Share Repu

SHAREHOLDERS' EQUITY Share Repurchases (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Stockholders' Equity Note [Abstract]
Stock repurchased during period (in shares)	1.5	1.1
Stock repurchase program	$ 26,356	$ 19,337
Remaining authorized repurchase amount	$ 54,600

INCOME TAXES Summary of Income

INCOME TAXES Summary of Income Tax Benefit (expense) and corresponding effective tax rates (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income tax benefit	$ 2,856	$ 714
Effective tax rate	16.80%	60.70%

CASH, CASH EQUIVALETS AND RES_3

CASH, CASH EQUIVALETS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 58,902	$ 70,141
Restricted cash, included in other current assets	21,724	22,238
Total cash, cash equivalents and restricted cash	$ 80,626	$ 92,379	$ 136,524	$ 148,774

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLES Changes in Goodwill (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Goodwill [Roll Forward]
Goodwill, net at June 30, 2019	$ 345,718
Translation rate adjustments	(384)
Derecognition related to sale of salon assets to franchisees	(32,083)
Goodwill, net at September 30, 2019	313,251
Franchise
Goodwill [Roll Forward]
Goodwill, net at June 30, 2019	227,928
Translation rate adjustments	(85)
Derecognition related to sale of salon assets to franchisees	0
Goodwill, net at September 30, 2019	227,843
Company-owned
Goodwill [Roll Forward]
Goodwill, net at June 30, 2019	117,790
Translation rate adjustments	(299)
Derecognition related to sale of salon assets to franchisees	(32,083)
Goodwill, net at September 30, 2019	$ 85,408

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLES Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Amortized intangible assets:
Cost	$ 30,938	$ 31,065
Accumulated Amortization	(22,522)	(22,304)
Net	8,416	8,761
Brand assets and trade names
Amortized intangible assets:
Cost	6,856	6,909
Accumulated Amortization	(3,687)	(3,659)
Net	3,169	3,250
Franchise agreements
Amortized intangible assets:
Cost	9,721	9,783
Accumulated Amortization	(8,088)	(8,057)
Net	1,633	1,726
Lease intangibles
Amortized intangible assets:
Cost	13,480	13,490
Accumulated Amortization	(10,226)	(10,065)
Net	3,254	3,425
Other
Amortized intangible assets:
Cost	881	883
Accumulated Amortization	(521)	(523)
Net	$ 360	$ 360

RIGHT OF USE ASSET AND LEASE _3

RIGHT OF USE ASSET AND LEASE LIABILITIES Narrative (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Lessor, Lease, Description [Line Items]
Lessee, term of contract	15 years
Lessor, term of contract	5 years
Franchise rental income	$ 31,424
Weighted average remaining lease term	6 years 10 months 13 days
Weighted average discount rate	3.95%
Operating lease not yet commenced, lease payments	$ 13,500
Operating lease not yet commenced, term	10 years 9 months
Minimum
Lessor, Lease, Description [Line Items]
Lessee, term of contract	1 year
Lessee, renewal term	5 years
Maximum
Lessor, Lease, Description [Line Items]
Lessee, term of contract	20 years
Lessee, renewal term	10 years

RIGHT OF USE ASSET AND LEASE _4

RIGHT OF USE ASSET AND LEASE LIABILITIES Real Estate Taxes and Other Occupancy Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Lessee, Lease, Description [Line Items]
Rent	$ 31,400
Non-franchise operations
Lessee, Lease, Description [Line Items]
Minimum rent	19,561
Percentage rent based on sales	1,298
Real estate taxes and other expenses	3,405
Rent	$ 24,264
Minimum rent		$ 29,915
Percentage rent based on sales		1,052
Real estate taxes and other expenses		5,011
Rent		$ 35,978

RIGHT OF USE ASSET AND LEASE _5

RIGHT OF USE ASSET AND LEASE LIABILITIES Future Operating Lease Commitments (Details) $ in Thousands	Sep. 30, 2019USD ($)
Operating Leases
Remainder of 2020	$ 148,755
2021	179,581
2022	158,905
2023	142,156
2024	127,477
Thereafter	321,091
Total future obligations	1,077,965
Less amount representing interest	135,424
Present value of lease liabilities	942,541
Less: current lease liabilities	161,407
Long-term lease liabilities	781,134
Sublease Income To Be Received From Franchisees
Remainder of 2020	(56,059)
2021	(67,285)
2022	(59,388)
2023	(53,293)
2024	(48,224)
Thereafter	(125,524)
Total future obligations	(409,773)
Net Rent Commitments
Remainder of 2020	92,696
2021	112,296
2022	99,517
2023	88,863
2024	79,253
Thereafter	195,567
Total future obligations	668,192
Operating Segments | Franchise
Operating Leases
Remainder of 2020	56,059
2021	67,285
2022	59,388
2023	53,293
2024	48,224
Thereafter	125,524
Total future obligations	409,773
Less amount representing interest	31,329
Present value of lease liabilities	378,444
Less: current lease liabilities	68,725
Long-term lease liabilities	309,719
Operating Segments | Company-owned
Operating Leases
Remainder of 2020	91,328
2021	111,002
2022	99,345
2023	88,686
2024	79,070
Thereafter	194,746
Total future obligations	664,177
Less amount representing interest	103,420
Present value of lease liabilities	560,757
Less: current lease liabilities	91,414
Long-term lease liabilities	469,343
Corporate
Operating Leases
Remainder of 2020	1,368
2021	1,294
2022	172
2023	177
2024	183
Thereafter	821
Total future obligations	4,015
Less amount representing interest	675
Present value of lease liabilities	3,340
Less: current lease liabilities	1,268
Long-term lease liabilities	$ 2,072

FINANCING ARRANGEMENTS Schedule

FINANCING ARRANGEMENTS Schedule of Long-term Debt (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Debt Instrument [Line Items]
Long-term debt	$ 90,000,000	$ 90,000,000
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt	$ 90,000,000	90,000,000
Line of Credit | Revolving Credit Facility | Revolving credit facility
Debt Instrument [Line Items]
Interest Rate	3.69%
Long-term debt	$ 90,000,000	$ 90,000,000

FINANCING ARRANGEMENTS Revolvin

FINANCING ARRANGEMENTS Revolving Credit Facility (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Debt Instrument [Line Items]
Long-term debt, net	$ 90,000,000	$ 90,000,000
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, net	90,000,000	90,000,000
Maximum borrowing capacity	295,000,000	295,000,000
Line of Credit | Revolving Credit Facility | Revolving credit facility
Debt Instrument [Line Items]
Long-term debt, net	90,000,000	$ 90,000,000
Unused borrowing capacity, amount	183,500,000
Line of Credit | Letter of Credit | Revolving credit facility
Debt Instrument [Line Items]
Long-term line of credit	$ 21,500,000

FINANCING ARRANGEMENTS Schedu_2

FINANCING ARRANGEMENTS Schedule of Long-term Financial Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Debt Instrument [Line Items]
Long-term financing liability	$ 28,719	$ 28,910
Salt Lake City
Debt Instrument [Line Items]
Interest Rate	3.30%
Long-term financing liability	$ 17,187	17,354
Chattanooga
Debt Instrument [Line Items]
Interest Rate	3.70%
Long-term financing liability	$ 11,532	$ 11,556

FINANCING ARRANGEMENTS Sale and

FINANCING ARRANGEMENTS Sale and Leaseback Transaction (Details) $ in Millions	Sep. 30, 2019USD ($)
Debt Disclosure [Abstract]
Term of contract	15 years
Short-term financial liability	$ 0.9
Weighted average lease term	14 years 4 months 24 days
Weighted-average discount rate	3.46%
Interest expense	$ 0.3

FINANCING ARRANGEMENTS Schedu_3

FINANCING ARRANGEMENTS Schedule of Future Minimum Lease Payments (Details) $ in Thousands	Sep. 30, 2019USD ($)
Salt Lake City
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract]
Remainder of 2020	$ 818
2021	1,157
2022	1,171
2023	1,186
2024	1,200
Thereafter	11,952
Total	17,484
Chattanooga
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract]
Remainder of 2020	604
2021	817
2022	829
2023	842
2024	854
Thereafter	9,282
Total	$ 13,228

FAIR VALUE MEASUREMENTS Impairm

FAIR VALUE MEASUREMENTS Impairments Based on Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Assets and liabilities measured at fair value on a nonrecurring basis
Long-lived asset impairments	$ 1,517	$ 1,831
Level 3 | Nonrecurring
Assets and liabilities measured at fair value on a nonrecurring basis
Long-lived asset impairments	$ 1,517	$ 1,831

SEGMENT INFORMATION Reportable

SEGMENT INFORMATION Reportable Operating Segment Salons (Details) - salon	Sep. 30, 2019	Jun. 30, 2019
Franchisor Disclosure [Line Items]
Number of salons	7,092	7,145
Equity ownership interest locations
Franchisor Disclosure [Line Items]
Number of salons	85	86
Franchise
Franchisor Disclosure [Line Items]
Number of salons	4,456	3,951
Salons as a percent of total Company-owned and Franchise salons	63.60%	56.00%
Franchise | International
Franchisor Disclosure [Line Items]
Number of salons	227	230
Franchise | Total North American Salons | North American
Franchisor Disclosure [Line Items]
Number of salons	4,229	3,721
Franchise | SmartStyle/Cost Cutters in Walmart Stores
Franchisor Disclosure [Line Items]
Number of salons	825	615
Franchise | Supercuts
Franchisor Disclosure [Line Items]
Number of salons	2,456	2,340
Franchise | Signature Style
Franchisor Disclosure [Line Items]
Number of salons	948	766
Company-owned
Franchisor Disclosure [Line Items]
Number of salons	2,551	3,108
Company-owned | Total North American Salons
Franchisor Disclosure [Line Items]
Salons as a percent of total Company-owned and Franchise salons	36.40%	44.00%
Company-owned | SmartStyle/Cost Cutters in Walmart Stores
Franchisor Disclosure [Line Items]
Number of salons	1,333	1,550
Company-owned | Supercuts
Franchisor Disclosure [Line Items]
Number of salons	312	403
Company-owned | Signature Style
Franchisor Disclosure [Line Items]
Number of salons	906	1,155

SEGMENT INFORMATION Operating R

SEGMENT INFORMATION Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Franchise rental income	$ 31,424
Total Revenues	247,038	$ 287,835
Operating expenses:
Cost of service	90,482	121,497
Cost of product	26,327	32,181
Site operating expenses	32,942	36,821
General and administrative	40,625	47,727
Rent	31,400
Depreciation and amortization	9,380	10,202
TBG restructuring	1,500	0
Total operating expenses	256,944	284,406
Operating (loss) income	(9,906)	3,429
Other (expense) income:
Interest expense	(1,439)	(1,006)
Loss on sale of salon assets to franchisees, net	(5,860)	(3,960)
Interest income and other, net	171	360
Loss from continuing operations before income taxes	(17,034)	(1,177)
Operating Segments | Company-owned
Revenues:
Franchise rental income	0
Total Revenues	174,492	249,810
Operating expenses:
Cost of service	90,482	121,497
Cost of product	16,047	19,768
Site operating expenses	22,516	28,845
General and administrative	10,150	16,381
Depreciation and amortization	6,107	8,057
TBG restructuring	0
Total operating expenses	169,091	230,234
Operating (loss) income	5,401	19,576
Other (expense) income:
Interest expense	0	0
Loss on sale of salon assets to franchisees, net	0	0
Interest income and other, net	0	0
Loss from continuing operations before income taxes	5,401	19,576
Operating Segments | Franchise
Revenues:
Franchise rental income	31,424
Total Revenues	72,546	38,025
Operating expenses:
Cost of service	0	0
Cost of product	10,280	12,413
Site operating expenses	10,426	7,976
General and administrative	8,357	7,664
Depreciation and amortization	160	158
TBG restructuring	1,500
Total operating expenses	62,337	28,305
Operating (loss) income	10,209	9,720
Other (expense) income:
Interest expense	0	0
Loss on sale of salon assets to franchisees, net	0	0
Interest income and other, net	0	0
Loss from continuing operations before income taxes	10,209	9,720
Unallocated Corporate
Revenues:
Franchise rental income	0
Total Revenues	0	0
Operating expenses:
Cost of service	0	0
Cost of product	0	0
Site operating expenses	0	0
General and administrative	22,118	23,682
Depreciation and amortization	3,113	1,987
TBG restructuring	0
Total operating expenses	25,516	25,867
Operating (loss) income	(25,516)	(25,867)
Other (expense) income:
Interest expense	(1,439)	(1,006)
Loss on sale of salon assets to franchisees, net	(5,860)	(3,960)
Interest income and other, net	171	360
Loss from continuing operations before income taxes	(32,644)	(30,473)
Service
Revenues:
Total revenues	141,941	207,848
Service | Operating Segments | Company-owned
Revenues:
Total revenues	141,941	207,848
Service | Operating Segments | Franchise
Revenues:
Total revenues	0	0
Service | Unallocated Corporate
Revenues:
Total revenues	0	0
Product
Revenues:
Total revenues	45,656	57,591
Product | Operating Segments | Company-owned
Revenues:
Total revenues	32,551	41,962
Product | Operating Segments | Franchise
Revenues:
Total revenues	13,105	15,629
Product | Unallocated Corporate
Revenues:
Total revenues	0	0
Royalties and fees
Revenues:
Total revenues	28,017	22,396
Royalties and fees | Operating Segments | Company-owned
Revenues:
Total revenues	0	0
Royalties and fees | Operating Segments | Franchise
Revenues:
Total revenues	28,017	22,396
Royalties and fees | Unallocated Corporate
Revenues:
Total revenues	0	0
Non-franchise operations
Operating expenses:
Rent	24,264
Rent		35,978
Non-franchise operations | Operating Segments | Company-owned
Operating expenses:
Rent	23,789
Rent		35,686
Non-franchise operations | Operating Segments | Franchise
Operating expenses:
Rent	190
Rent		94
Non-franchise operations | Unallocated Corporate
Operating expenses:
Rent	285
Rent		$ 198
Franchise
Operating expenses:
Rent	31,424
Franchise | Operating Segments | Company-owned
Operating expenses:
Rent	0
Franchise | Operating Segments | Franchise
Operating expenses:
Rent	31,424
Franchise | Unallocated Corporate
Operating expenses:
Rent	$ 0