Regis (RGS) 10-Q 1 Nov 23 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Sep. 30, 2023	Oct. 25, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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	3701 Wayzata Boulevard,
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55416
City Area Code	952
Local Phone Number	947-7777
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $0.05 par value
Trading Symbol	RGS
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		45,579,248
Entity Central Index Key	0000716643
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Filer Category	Non-accelerated Filer

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Current assets:
Cash and cash equivalents	$ 9,298	$ 9,508
Receivables, net	9,697	10,885
Inventories, net	1,011	1,681
Other current assets	14,628	15,164
Total current assets	34,634	37,238
Property and equipment, net	6,336	6,422
Goodwill (Note 1)	173,291	173,791
Other intangibles, net	2,691	2,783
Right of use asset (Note 8)	337,481	360,836
Other assets	25,737	26,307
Total assets	580,170	607,377
Current liabilities:
Accounts payable	13,069	14,309
Accrued expenses	26,142	30,109
Short-term lease liability (Note 8)	78,006	81,917
Total current liabilities	117,217	126,335
Long-term debt, net (Note 9)	179,732	176,830
Long-term lease liability (Note 8)	271,942	291,901
Other non-current liabilities	46,543	49,041
Total liabilities	615,434	644,107
Commitments and contingencies (Note 6)
Shareholders' deficit:
Common stock, $0.05 par value; issued and outstanding, 45,579,248 and 45,566,228 common shares at September 30, 2023 and June 30, 2023, respectively	2,279	2,278
Additional paid-in capital	65,160	64,600
Accumulated other comprehensive income	8,734	9,023
Accumulated deficit	(111,437)	(112,631)
Total shareholders' deficit	(35,264)	(36,730)
Total liabilities and shareholders' deficit	$ 580,170	$ 607,377

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2023	Jun. 30, 2023
Statement of Financial Position [Abstract]
Common stock par value (in dollars per share)	$ 0.05	$ 0.05
Common stock issued (in shares)	45,579,248	45,566,228
Common stock outstanding (in shares)	45,579,248	45,566,228

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Sep. 30, 2023	Sep. 30, 2022
Revenues:
Franchise		$ 24,667	$ 30,330
Total revenue		53,372	61,871
Operating expenses:
General and administrative		10,729	14,361
Rent		24,700	30,300
Advertising fund expense		7,226	8,251
Depreciation and amortization		370	1,251
Total operating expenses		45,938	59,401
Operating income		7,434	2,470
Other expense:
Interest expense		(6,188)	(3,817)
Other, net		(200)	(463)
Income (loss) from operations before income taxes		1,046	(1,810)
Income tax benefit (expense)		148	(28)
Income (loss) from continuing operations		1,194	(1,838)
Income from discontinued operations (Note 3)		0	3,306
Net income		$ 1,194	$ 1,468
Basic:
Income (loss) from continuing operations (in dollars per share)		$ 0.03	$ (0.04)
Income from discontinued operations, basic (in dollars per share)		0	0.07
Net income per share, basic (in dollars per share)	[1]	0.03	0.03
Diluted:
Income (loss) from continuing operations, diluted (in dollars per share)		0.03	(0.04)
Income from discontinued operations, diluted (in dollars per share)		0	0.07
Net income per share, diluted (in dollars per share)	[1]	$ 0.03	$ 0.03
Weighted average common and common equivalent shares outstanding:
Basic (in shares)		46,640	46,054
Diluted (in shares)		47,243	46,054
Non-Franchise Lease
Operating expenses:
Rent		$ 1,097	$ 1,753
Franchisor
Operating expenses:
Rent		24,667	30,330
Royalties
Revenues:
Revenues		16,528	17,180
Fees
Revenues:
Revenues		2,631	2,553
Product sales to franchisees
Revenues:
Revenues		384	443
Operating expenses:
Cost of product sales to franchisees		359	470
Advertising fund contributions
Revenues:
Revenues		7,226	8,251
Company-owned salon revenue
Revenues:
Revenues		1,936	3,114
Operating expenses:
Company-owned salon expense	[2]	$ 1,490	$ 2,985
[1]Total is a recalculation; line items calculated individually may not sum to total due to rounding.[2]Includes cost of service and product sold to guests in our Company-owned salons. Excludes general and administrative expense, rent and depreciation and amortization related to Company-owned salons

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 1,194	$ 1,468
Foreign currency translation adjustments	(289)	(858)
Comprehensive income	$ 905	$ 610

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Retained Earnings (Accumulated Deficit)
Balance (in shares) at Jun. 30, 2022		45,510,245
Balance at Jun. 30, 2022	$ (30,953)	$ 2,276	$ 62,562	$ 9,455	$ (105,246)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,468				1,468
Foreign currency translation	(858)			(858)
Stock-based compensation	496		496
Net restricted stock activity (in shares)		26,280
Net restricted stock activity	(13)	$ 1	(14)
Balance (in shares) at Sep. 30, 2022		45,536,525
Balance at Sep. 30, 2022	$ (29,860)	$ 2,277	63,044	8,597	(103,778)
Balance (in shares) at Jun. 30, 2023	45,566,228	45,566,228
Balance at Jun. 30, 2023	$ (36,730)	$ 2,278	64,600	9,023	(112,631)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,194				1,194
Foreign currency translation	(289)			(289)
Stock-based compensation	567		567
Net restricted stock activity (in shares)		13,020
Net restricted stock activity	$ (6)	$ 1	(7)
Balance (in shares) at Sep. 30, 2023	45,579,248	45,579,248
Balance at Sep. 30, 2023	$ (35,264)	$ 2,279	$ 65,160	$ 8,734	$ (111,437)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income		$ 1,194	$ 1,468
Adjustments to reconcile net income to cash used in operating activities:
Gain from sale of OSP (Note 3)		0	(3,927)
Depreciation and amortization		375	1,035
Deferred income taxes		(59)	28
Non-cash interest		640	0
Stock-based compensation		630	531
Amortization of debt discount and financing costs		747	648
Other non-cash items affecting earnings		238	481
Changes in operating assets and liabilities, excluding the effects of asset sales	[1]	(6,589)	(5,321)
Net cash used in operating activities		(2,824)	(5,057)
Cash flows from investing activities:
Capital expenditures		(163)	(184)
Proceeds from sale of OSP, net of fees		0	3,500
Net cash (used in) provided by investing activities		(163)	3,316
Cash flows from financing activities:
Borrowings on credit facility		2,000	6,357
Repayments of long-term debt		(162)	(5,801)
Debt refinancing fees		(152)	(4,341)
Taxes paid for shares withheld		(6)	(13)
Net cash provided by (used in) financing activities		1,680	(3,798)
Effect of exchange rate changes on cash and cash equivalents		(42)	(166)
Decrease in cash, cash equivalents, and restricted cash		(1,349)	(5,705)
Cash, cash equivalents and restricted cash:
Beginning of period		21,396	27,464
End of period		$ 20,047	$ 21,759
[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, 2023
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, 2023 and for the three months ended September 30, 2023 and 2022, reflect, in the opinion of management, all adjustments necessary to fairly state the consolidated financial position of the Company as of September 30, 2023 and its consolidated results of operations, comprehensive income, shareholders' deficit 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, 2023 and other documents filed or furnished with the SEC during the current fiscal year. Goodwill: As of September 30, 2023 and June 30, 2023, the Franchise reporting unit had $173.3 and $173.8 million, respectively, of goodwill. The change in goodwill for the three months ended September 30, 2023 is due to foreign currency translation. 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 value. An interim impairment analysis was not required in the three months ended September 30, 2023. Depreciation: Depreciation expense in the three months ended September 30, 2023 and 2022 includes $0.0 and $0.2 million, respectively, of asset retirement obligations, which are cash expenses.

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	REVENUE RECOGNITION: Revenue Recognition and Deferred Revenue: Revenue recognized over time 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 revenues are 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 Statements of Operations. The treatment increases both the gross amount of reported revenue and 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 opens and is then recognized over the term of the franchise agreement, which is typically 10 years. Franchise rental income is a result of the Company signing leases on behalf of franchisees and entering into sublease arrangements with the franchisees. The Company recognizes franchise rental income and expense when it is due to the landlord and has no impact on net income. Revenue recognized at point of sale Company-owned salon revenues are recognized at the time when the services are provided, or 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 guest. 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 to franchisees and other partners are recorded at the time product is delivered. Information about receivables, broker fees and deferred revenue subject to the current revenue recognition guidance is as follows: September 30, June 30, Balance Sheet Classification (Dollars in thousands) Receivables from contracts with customers, net $ 6,426 $ 5,683 Receivables, net Broker fees 11,623 12,471 Other assets Deferred revenue: Current Gift card liability $ 1,764 $ 1,823 Accrued expenses Deferred franchise fees open salons 5,175 5,325 Accrued expenses Total current deferred revenue $ 6,939 $ 7,148 Non-current Deferred franchise fees unopened salons $ 2,217 $ 2,312 Other non-current liabilities Deferred franchise fees open salons 19,323 20,839 Other non-current liabilities Total non-current deferred revenue $ 21,540 $ 23,151 Receivables relate primarily to payments due for royalties, advertising fees and rent. The receivables balance is presented net of an allowance for expected losses (i.e., doubtful accounts). Provisions for credit losses are recorded based on management’s judgment regarding our ability to collect as well as the age of the receivables. Receivable are written off when they are deemed uncollectible. The following table is a rollforward of the allowance for doubtful accounts for the periods indicated: Three Months Ended September 30, 2023 2022 (Dollars in thousands) Balance at beginning of period $ 7,297 $ 6,559 Provision for doubtful accounts 211 461 Provision for franchisee rent 167 19 Recoveries (237) — Write-offs (991) (725) Reclass of accrued rent (1) — 60 Other (2) (56) — Balance at end of period $ 6,391 $ 6,374 _______________________________________________________________________________ (1) The reclass of accrued rent represents franchisee rent obligations guaranteed by the Company that were unbilled and deemed unrecoverable as of June 30, 2022, and subsequently billed, so the related accruals were reclassified to allowance for doubtful accounts. (2) Includes currency fluctuation. The Company offers financing to Smartstyle franchisees when they remodel their salons. Included in Other assets is a receivable of $0.9 million, partially offset by a credit loss reserve of $0.2 million, related to this financing program. 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 franchise agreement. The following table is a rollforward of the broker fee balance for the periods indicated: Three Months Ended September 30, 2023 2022 (Dollars in thousands) Balance at beginning of period $ 12,471 $ 15,592 Additions — — Amortization (739) (827) Write-offs (109) — Balance at end of period $ 11,623 $ 14,765 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, 2023 and 2022 was $1.7 and $1.5 million, respectively. Estimated revenue expected to be recognized in the future related to deferred franchise fees for open salons as of September 30, 2023 is as follows (dollars in thousands): Remainder of 2024 $ 3,881 2025 4,889 2026 4,420 2027 3,959 2028 3,276 Thereafter 4,073 Total $ 24,498

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	3 Months Ended
	Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	DISCONTINUED OPERATIONS: On June 30, 2022, the Company sold its Opensalon ® Pro (OSP) solution to Soham Inc. The Company received $13.0 million in proceeds in June 2022 and received $5.0 million in fiscal year 2023, offset by a $0.5 million transaction fee. As a result of the sale, the Company classified the OSP business as discontinued operations in the financial statements for all periods presented. No income taxes have been allocated to discontinued operations based on the methodology required by accounting for income taxes guidance. The following summarizes the results of discontinued operations for the periods presented: Three Months Ended September 30, 2023 2022 (Dollars in thousands) Discontinued operations: OSP fees $ — $ (226) General and administrative — (27) Rent — (368) Gain from sale of OSP — 3,927 Income from OSP discontinued operations, net $ — $ 3,306

SHAREHOLDERS' DEFICIT

SHAREHOLDERS' DEFICIT	3 Months Ended
	Sep. 30, 2023
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' DEFICIT	SHAREHOLDERS' DEFICIT: Stock-Based Employee Compensation: During the three months ended September 30, 2023, the Company granted restricted stock units as follows: Three Months Ended September 30, 2023 Restricted stock units (RSUs) 259,403 The RSUs granted during the three months ended September 30, 2023, vest in equal amounts over a three-year period subsequent to the grant date. Total compensation cost for stock-based payment arrangements totaling $0.6 and $0.5 million for the three months ended September 30, 2023 and 2022, respectively, was recorded within general and administrative on the unaudited Condensed Consolidated Statements of Operations. Share Issuance Program: In fiscal year 2021, the Company filed a $150.0 million shelf registration statement and $50.0 million prospectus supplement with the Securities and Exchange Commission (SEC) under which it may offer and sell, from time to time, up to $50.0 million worth of its Class A common stock in "at-the-market" offerings. During the three months ended September 30, 2023 and 2022, the Company did not issue any shares. As of September 30, 2023, $11.6 million remains under the prospectus supplement, which equates to 16.5 million shares based on the share price as of September 30, 2023.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES: A summary of the income tax benefit (expense) and corresponding effective tax rates is as follows: Three Months Ended September 30, 2023 2022 (Dollars in thousands) Income tax benefit (expense) $ 148 $ (28) Effective tax rate (14.1) % (1.5) % The recorded tax provision and effective tax rate for the three months ended September 30, 2023 and 2022 were different than what would normally be expected, primarily due to the impact of the deferred tax valuation allowance. With limited exceptions, due to net operating loss carryforwards, our federal, state and foreign tax returns are open to examination for all years since 2014, 2012 and 2016, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES: The Company is a plaintiff or defendant in various lawsuits and claims arising out of the normal course of business. Like certain other franchisors, the Company has faced allegations of franchise regulation and agreement violations. Additionally, because the Company may be the tenant under a master lease for a location subleased to a franchisee, the Company has faced allegations of nonpayment of rent and associated charges. Further, similar to other large retail employers, the Company has faced, and may continue to face, 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 incur judgments in the future or enter into settlements of claims that could have a material adverse effect on its results of operations in any particular period.

CASH, CASH EQUIVALENTS AND REST

CASH, CASH EQUIVALENTS AND RESTRICTED CASH	3 Months Ended
	Sep. 30, 2023
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 within other current assets on the unaudited Condensed Consolidated Balance Sheets to the amount of cash, cash equivalents and restricted cash reported on the unaudited Condensed Consolidated Statements of Cash Flows: September 30, June 30, (Dollars in thousands) Cash and cash equivalents $ 9,298 $ 9,508 Restricted cash, included in other current assets (1) 10,749 11,888 Total cash, cash equivalents and restricted cash $ 20,047 $ 21,396 _______________________________________________________________________________ (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.

LEASES

LEASES	3 Months Ended
	Sep. 30, 2023
Leases [Abstract]
LEASES	LEASES: 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 its corporate facilities under operating leases. The original terms range from one five Three Months Ended September 30, 2023 2022 (Dollars in thousands) Office rent $ 825 $ 872 Lease termination (benefit) expense (13) 458 Lease liability benefit (1) (128) (602) Franchise salon rent (2) (337) (53) Company-owned salon rent 750 1,078 Total $ 1,097 $ 1,753 _______________________________________________________________________________ (1) Upon termination of previously impaired leases, the Company derecognizes the corresponding ROU assets and lease liabilities, which results in a net gain. In addition, the Company recognizes a benefit from lease liabilities decreasing in excess of previously impaired ROU assets for ongoing leases that were previously impaired. (2) The credit in franchise salon rent is related to settlements with landlords for less than previously accrued. The Company leases salon premises in which the majority of its franchisees operate and has entered into corresponding sublease arrangements with franchisees. All lease-related costs are passed through to the franchisees. The Company records the rental payments due from franchisees as franchise rental income and the corresponding amounts owed to landlords as franchise rent expense on the unaudited Condensed Consolidated Statements of Operations. For the three months ended September 30, 2023 and 2022, franchise rental income and franchise rent expense were $24.7 and $30.3 million, respectively. These leases generally have lease terms of approximately five years. The Company expects to renew the SmartStyle ® master lease and some leases for locations subleased to our franchisees upon expiration of those leases. Other leases are expected to be renewed by the franchisee upon expiration. All the Company's leases are operating leases. The lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date, including one lease term option when the lease is expected to be renewed. The ROU asset is initially and subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, less accrued lease payments and unamortized lease incentives received, if any. Expense for lease payments is recognized on a straight-line basis over the lease term, including the lease renewal option when the lease is expected to be renewed. Generally, the non-lease components, such as real estate taxes and other occupancy expenses, are separate from rent expense within the lease and are not included in the measurement of the lease liability because these charges are variable. 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 uses the portfolio approach in applying the discount rate based on the original lease term. The weighted average remaining lease term was 5.65 years and 5.52 years and the weighted average discount rate was 4.60% and 4.55% for all salon operating leases as of September 30, 2023 and June 30, 2023, respectively. As of September 30, 2023, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (dollars in thousands): Fiscal Year Leases for Franchise Salons Leases for Company-owned Salons Corporate Leases Total Operating Lease Payments Sublease Income to be Received from Franchisees Net Rent Commitments Remainder of 2024 $ 68,629 $ 1,044 $ 978 $ 70,651 $ (68,629) $ 2,022 2025 77,882 674 1,334 79,890 (77,882) 2,008 2026 64,605 454 1,367 66,426 (64,605) 1,821 2027 54,830 229 1,401 56,460 (54,830) 1,630 2028 46,254 218 1,436 47,908 (46,254) 1,654 Thereafter 70,459 56 2,981 73,496 (70,459) 3,037 Total future obligations $ 382,659 $ 2,675 $ 9,497 $ 394,831 $ (382,659) $ 12,172 Less amounts representing interest 43,445 208 1,230 44,883 Present value of lease liability $ 339,214 $ 2,467 $ 8,267 $ 349,948 Less short-term lease liability 75,885 1,132 989 78,006 Long-term lease liability $ 263,329 $ 1,335 $ 7,278 $ 271,942
LEASES	LEASES: 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 its corporate facilities under operating leases. The original terms range from one five Three Months Ended September 30, 2023 2022 (Dollars in thousands) Office rent $ 825 $ 872 Lease termination (benefit) expense (13) 458 Lease liability benefit (1) (128) (602) Franchise salon rent (2) (337) (53) Company-owned salon rent 750 1,078 Total $ 1,097 $ 1,753 _______________________________________________________________________________ (1) Upon termination of previously impaired leases, the Company derecognizes the corresponding ROU assets and lease liabilities, which results in a net gain. In addition, the Company recognizes a benefit from lease liabilities decreasing in excess of previously impaired ROU assets for ongoing leases that were previously impaired. (2) The credit in franchise salon rent is related to settlements with landlords for less than previously accrued. The Company leases salon premises in which the majority of its franchisees operate and has entered into corresponding sublease arrangements with franchisees. All lease-related costs are passed through to the franchisees. The Company records the rental payments due from franchisees as franchise rental income and the corresponding amounts owed to landlords as franchise rent expense on the unaudited Condensed Consolidated Statements of Operations. For the three months ended September 30, 2023 and 2022, franchise rental income and franchise rent expense were $24.7 and $30.3 million, respectively. These leases generally have lease terms of approximately five years. The Company expects to renew the SmartStyle ® master lease and some leases for locations subleased to our franchisees upon expiration of those leases. Other leases are expected to be renewed by the franchisee upon expiration. All the Company's leases are operating leases. The lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date, including one lease term option when the lease is expected to be renewed. The ROU asset is initially and subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, less accrued lease payments and unamortized lease incentives received, if any. Expense for lease payments is recognized on a straight-line basis over the lease term, including the lease renewal option when the lease is expected to be renewed. Generally, the non-lease components, such as real estate taxes and other occupancy expenses, are separate from rent expense within the lease and are not included in the measurement of the lease liability because these charges are variable. 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 uses the portfolio approach in applying the discount rate based on the original lease term. The weighted average remaining lease term was 5.65 years and 5.52 years and the weighted average discount rate was 4.60% and 4.55% for all salon operating leases as of September 30, 2023 and June 30, 2023, respectively. As of September 30, 2023, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (dollars in thousands): Fiscal Year Leases for Franchise Salons Leases for Company-owned Salons Corporate Leases Total Operating Lease Payments Sublease Income to be Received from Franchisees Net Rent Commitments Remainder of 2024 $ 68,629 $ 1,044 $ 978 $ 70,651 $ (68,629) $ 2,022 2025 77,882 674 1,334 79,890 (77,882) 2,008 2026 64,605 454 1,367 66,426 (64,605) 1,821 2027 54,830 229 1,401 56,460 (54,830) 1,630 2028 46,254 218 1,436 47,908 (46,254) 1,654 Thereafter 70,459 56 2,981 73,496 (70,459) 3,037 Total future obligations $ 382,659 $ 2,675 $ 9,497 $ 394,831 $ (382,659) $ 12,172 Less amounts representing interest 43,445 208 1,230 44,883 Present value of lease liability $ 339,214 $ 2,467 $ 8,267 $ 349,948 Less short-term lease liability 75,885 1,132 989 78,006 Long-term lease liability $ 263,329 $ 1,335 $ 7,278 $ 271,942

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS	3 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
FINANCING ARRANGEMENTS	FINANCING ARRANGEMENTS: The Company's debt consists of the following: Maturity Date September 30, September 30, June 30, (Fiscal Year) (Interest rate %) (Dollars in thousands) Term loan 2026 9.69% $ 172,106 $ 172,268 Deferred financing fees (6,406) (6,471) Term loan, net $ 165,700 $ 165,797 Revolving credit facility 2026 9.69% 12,000 10,000 Paid-in-kind interest 2,032 1,033 Total long-term debt, net $ 179,732 $ 176,830 The Company's credit facility matures in August 2025. In addition to a $10.0 million minimum liquidity covenant, the amended credit agreement includes typical provisions and financial covenants, including minimum EBITDA, leverage and fixed-charge coverage ratio covenants, the latter two of which are not tested until December 31, 2023. The agreement utilizes an interest rate margin that is subject to annual increases. The margin applicable to term secured overnight financing rate (SOFR) loans was 3.875% through March 27, 2023. Effective March 27, 2023, the margin increased to 6.25%, of which 4.25% is paid currently in cash and 2.00% is PIK interest (added to the principal balance and thereafter accruing interest). Effective March 27, 2024, the margin will increase to 7.25%, of which 4.25% will be paid currently in cash and 3.00% will be PIK interest. The margin applicable to base rate loans will be 100 basis points (1.00%) less than the margin applicable to term SOFR loans. Interest expense is recorded based on a weighted average effective interest rate method. The significant assumptions used in the weighted average estimate are the future SOFR rates and debt balance, as well as the length of time the debt will be outstanding. Cash interest paid in the three months ended September 30, 2023 and 2022 was $4.8 and $3.2 million, respectively. At September 30, 2023, the Company had outstanding standby letters of credit under the revolving credit facility of $9.8 million, primarily related to the Company's self-insurance program. As of September 30, 2023, total liquidity and available credit under the revolving credit facility, as defined by the agreement, were $42.4 and $33.1 million, respectively. As of September 30, 2023, the Company had cash and cash equivalents of $9.3 million and current liabilities of $117.2 million. The Company was in compliance with its covenants and other requirements of the financing arrangements as of September 30, 2023.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Sep. 30, 2023
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, 2023 and June 30, 2023, the estimated fair value of the Company's cash, cash equivalents, restricted cash, receivables, inventory, deferred compensation assets, accounts payable and debt approximated their carrying values. 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.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE:The Company's basic earnings per share is calculated as net income divided by weighted average common shares outstanding, excluding unvested outstanding stock options (SOs), stock appreciation rights (SARs), restricted stock units (RSUs) and stock-settled performance units (PSUs). The Company's diluted earnings per share is calculated as net income 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. The computation of weighted average shares outstanding, assuming dilution, excluded 4,176,371 and 3,211,485 of stock-based awards during the three months ended September 30, 2023 and 2022, respectively, as they were not dilutive under the treasury stock method.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION: Segment information is prepared on the same basis that the chief operating decision maker (CODM) reviews financial information for operational decision-making purposes. The Company's reportable operating segments consisted of the following salons: September 30, June 30, FRANCHISE SALONS: Supercuts 2,060 2,082 SmartStyle/Cost Cutters in Walmart Stores 1,373 1,388 Portfolio Brands 1,210 1,223 Total North American salons 4,643 4,693 Total International salons (1) 102 102 Total Franchise salons 4,745 4,795 as a percent of total Franchise and Company-owned salons 98.6 % 98.6 % COMPANY-OWNED SALONS: Supercuts 7 7 SmartStyle/Cost Cutters in Walmart Stores 48 48 Portfolio Brands 11 13 Total Company-owned salons 66 68 as a percent of total Franchise and Company-owned salons 1.4 % 1.4 % Total Franchise and Company-owned salons 4,811 4,863 _______________________________________________________________________________ (1) Canadian and Puerto Rican salons are included in the North American salon totals. Financial information concerning the Company's reportable operating segments is shown in the table below. Segment information is presented in the same way that the Company internally organizes the business for assessing performance and making decisions regarding allocation of resources. In the second quarter of fiscal year 2023, the Company revised its internal reporting such the CODM’s primary measures of segment performance are revenue and segment adjusted EBITDA. Revenue and segment adjusted EBITDA are regularly reviewed by the CODM to make decisions about resources to be allocated to the segments, assess current performance and forecast future performance. Asset information by segment is not provided to the CODM. Segment adjusted EBITDA is defined as income from continuing operations before interest, income taxes, depreciation, amortization and impairment. C onsistent with our internal management reporting, unallocated expenses include certain items impacting comparability. These unallocated items are not defined terms within U.S. GAAP. They are based on how management views the business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance and are not attributable to either segment. Unallocated fees include one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired ROUA, lease termination fees and asset retirement obligation costs. Three Months Ended September 30, 2023 2022 (Dollars in thousands) Revenues: Franchise $ 51,436 $ 58,757 Company-owned 1,936 3,114 Total revenue 53,372 61,871 Segment adjusted EBITDA: Franchise 7,960 4,993 Company-owned (497) (1,169) Total 7,463 3,824 Unallocated expenses 141 (566) Depreciation and amortization (370) (1,251) Interest expense (6,188) (3,817) Income tax benefit (expense) 148 (28) Income from discontinued operations — 3,306 Total net income $ 1,194 $ 1,468

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 1,194	$ 1,468

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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, 2023
Accounting Policies [Abstract]
Goodwill	Goodwill: As of September 30, 2023 and June 30, 2023, the Franchise reporting unit had $173.3 and $173.8 million, respectively, of goodwill. The change in goodwill for the three months ended September 30, 2023 is due to foreign currency translation. 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 value. An interim impairment analysis was not required in the three months ended September 30, 2023.
Revenue Recognition and Deferred Revenue	Revenue Recognition and Deferred Revenue: Revenue recognized over time 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 revenues are 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 Statements of Operations. The treatment increases both the gross amount of reported revenue and 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 opens and is then recognized over the term of the franchise agreement, which is typically 10 years. Franchise rental income is a result of the Company signing leases on behalf of franchisees and entering into sublease arrangements with the franchisees. The Company recognizes franchise rental income and expense when it is due to the landlord and has no impact on net income. Revenue recognized at point of sale Company-owned salon revenues are recognized at the time when the services are provided, or 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 guest. 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 to franchisees and other partners are recorded at the time product is delivered.
Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis	Assets and Liabilities Measured at Fair Value on a Recurring Basis As of September 30, 2023 and June 30, 2023, the estimated fair value of the Company's cash, cash equivalents, restricted cash, receivables, inventory, deferred compensation assets, accounts payable and debt approximated their carrying values. 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.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of receivables, broker fees and deferred revenue	Information about receivables, broker fees and deferred revenue subject to the current revenue recognition guidance is as follows: September 30, June 30, Balance Sheet Classification (Dollars in thousands) Receivables from contracts with customers, net $ 6,426 $ 5,683 Receivables, net Broker fees 11,623 12,471 Other assets Deferred revenue: Current Gift card liability $ 1,764 $ 1,823 Accrued expenses Deferred franchise fees open salons 5,175 5,325 Accrued expenses Total current deferred revenue $ 6,939 $ 7,148 Non-current Deferred franchise fees unopened salons $ 2,217 $ 2,312 Other non-current liabilities Deferred franchise fees open salons 19,323 20,839 Other non-current liabilities Total non-current deferred revenue $ 21,540 $ 23,151
Rollforward of allowance for doubtful accounts	The following table is a rollforward of the allowance for doubtful accounts for the periods indicated: Three Months Ended September 30, 2023 2022 (Dollars in thousands) Balance at beginning of period $ 7,297 $ 6,559 Provision for doubtful accounts 211 461 Provision for franchisee rent 167 19 Recoveries (237) — Write-offs (991) (725) Reclass of accrued rent (1) — 60 Other (2) (56) — Balance at end of period $ 6,391 $ 6,374 _______________________________________________________________________________ (1) The reclass of accrued rent represents franchisee rent obligations guaranteed by the Company that were unbilled and deemed unrecoverable as of June 30, 2022, and subsequently billed, so the related accruals were reclassified to allowance for doubtful accounts. (2) Includes currency fluctuation.
Broker fees	The following table is a rollforward of the broker fee balance for the periods indicated: Three Months Ended September 30, 2023 2022 (Dollars in thousands) Balance at beginning of period $ 12,471 $ 15,592 Additions — — Amortization (739) (827) Write-offs (109) — Balance at end of period $ 11,623 $ 14,765
Estimated revenue expected to be recognized	Estimated revenue expected to be recognized in the future related to deferred franchise fees for open salons as of September 30, 2023 is as follows (dollars in thousands): Remainder of 2024 $ 3,881 2025 4,889 2026 4,420 2027 3,959 2028 3,276 Thereafter 4,073 Total $ 24,498

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	3 Months Ended
	Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Discontinued Operations	The following summarizes the results of discontinued operations for the periods presented: Three Months Ended September 30, 2023 2022 (Dollars in thousands) Discontinued operations: OSP fees $ — $ (226) General and administrative — (27) Rent — (368) Gain from sale of OSP — 3,927 Income from OSP discontinued operations, net $ — $ 3,306

SHAREHOLDERS' DEFICIT (Tables)

SHAREHOLDERS' DEFICIT (Tables)	3 Months Ended
	Sep. 30, 2023
Stockholders' Equity Note [Abstract]
Share-based Equity Awards Granted	During the three months ended September 30, 2023, the Company granted restricted stock units as follows: Three Months Ended September 30, 2023 Restricted stock units (RSUs) 259,403

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Summary of income tax benefits and corresponding effective tax rates	A summary of the income tax benefit (expense) and corresponding effective tax rates is as follows: Three Months Ended September 30, 2023 2022 (Dollars in thousands) Income tax benefit (expense) $ 148 $ (28) Effective tax rate (14.1) % (1.5) %

CASH, CASH EQUIVALENTS AND RE_2

CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables)	3 Months Ended
	Sep. 30, 2023
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 within other current assets on the unaudited Condensed Consolidated Balance Sheets to the amount of cash, cash equivalents and restricted cash reported on the unaudited Condensed Consolidated Statements of Cash Flows: September 30, June 30, (Dollars in thousands) Cash and cash equivalents $ 9,298 $ 9,508 Restricted cash, included in other current assets (1) 10,749 11,888 Total cash, cash equivalents and restricted cash $ 20,047 $ 21,396 _______________________________________________________________________________ (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 within other current assets on the unaudited Condensed Consolidated Balance Sheets to the amount of cash, cash equivalents and restricted cash reported on the unaudited Condensed Consolidated Statements of Cash Flows: September 30, June 30, (Dollars in thousands) Cash and cash equivalents $ 9,298 $ 9,508 Restricted cash, included in other current assets (1) 10,749 11,888 Total cash, cash equivalents and restricted cash $ 20,047 $ 21,396 _______________________________________________________________________________ (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.

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Sep. 30, 2023
Leases [Abstract]
Schedule of Real Estate Taxes and Other Occupancy Expenses	Total rent includes the following: Three Months Ended September 30, 2023 2022 (Dollars in thousands) Office rent $ 825 $ 872 Lease termination (benefit) expense (13) 458 Lease liability benefit (1) (128) (602) Franchise salon rent (2) (337) (53) Company-owned salon rent 750 1,078 Total $ 1,097 $ 1,753 _______________________________________________________________________________ (1) Upon termination of previously impaired leases, the Company derecognizes the corresponding ROU assets and lease liabilities, which results in a net gain. In addition, the Company recognizes a benefit from lease liabilities decreasing in excess of previously impaired ROU assets for ongoing leases that were previously impaired. (2) The credit in franchise salon rent is related to settlements with landlords for less than previously accrued.
Lessor, Future Operating Lease Commitments	September 30, 2023, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (dollars in thousands): Fiscal Year Leases for Franchise Salons Leases for Company-owned Salons Corporate Leases Total Operating Lease Payments Sublease Income to be Received from Franchisees Net Rent Commitments Remainder of 2024 $ 68,629 $ 1,044 $ 978 $ 70,651 $ (68,629) $ 2,022 2025 77,882 674 1,334 79,890 (77,882) 2,008 2026 64,605 454 1,367 66,426 (64,605) 1,821 2027 54,830 229 1,401 56,460 (54,830) 1,630 2028 46,254 218 1,436 47,908 (46,254) 1,654 Thereafter 70,459 56 2,981 73,496 (70,459) 3,037 Total future obligations $ 382,659 $ 2,675 $ 9,497 $ 394,831 $ (382,659) $ 12,172 Less amounts representing interest 43,445 208 1,230 44,883 Present value of lease liability $ 339,214 $ 2,467 $ 8,267 $ 349,948 Less short-term lease liability 75,885 1,132 989 78,006 Long-term lease liability $ 263,329 $ 1,335 $ 7,278 $ 271,942
Lessee, Future Operating Lease Commitments	September 30, 2023, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (dollars in thousands): Fiscal Year Leases for Franchise Salons Leases for Company-owned Salons Corporate Leases Total Operating Lease Payments Sublease Income to be Received from Franchisees Net Rent Commitments Remainder of 2024 $ 68,629 $ 1,044 $ 978 $ 70,651 $ (68,629) $ 2,022 2025 77,882 674 1,334 79,890 (77,882) 2,008 2026 64,605 454 1,367 66,426 (64,605) 1,821 2027 54,830 229 1,401 56,460 (54,830) 1,630 2028 46,254 218 1,436 47,908 (46,254) 1,654 Thereafter 70,459 56 2,981 73,496 (70,459) 3,037 Total future obligations $ 382,659 $ 2,675 $ 9,497 $ 394,831 $ (382,659) $ 12,172 Less amounts representing interest 43,445 208 1,230 44,883 Present value of lease liability $ 339,214 $ 2,467 $ 8,267 $ 349,948 Less short-term lease liability 75,885 1,132 989 78,006 Long-term lease liability $ 263,329 $ 1,335 $ 7,278 $ 271,942

FINANCING ARRANGEMENTS (Tables)

FINANCING ARRANGEMENTS (Tables)	3 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Schedule of long-term debt	The Company's debt consists of the following: Maturity Date September 30, September 30, June 30, (Fiscal Year) (Interest rate %) (Dollars in thousands) Term loan 2026 9.69% $ 172,106 $ 172,268 Deferred financing fees (6,406) (6,471) Term loan, net $ 165,700 $ 165,797 Revolving credit facility 2026 9.69% 12,000 10,000 Paid-in-kind interest 2,032 1,033 Total long-term debt, net $ 179,732 $ 176,830

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Schedule of reportable operating segment salons	The Company's reportable operating segments consisted of the following salons: September 30, June 30, FRANCHISE SALONS: Supercuts 2,060 2,082 SmartStyle/Cost Cutters in Walmart Stores 1,373 1,388 Portfolio Brands 1,210 1,223 Total North American salons 4,643 4,693 Total International salons (1) 102 102 Total Franchise salons 4,745 4,795 as a percent of total Franchise and Company-owned salons 98.6 % 98.6 % COMPANY-OWNED SALONS: Supercuts 7 7 SmartStyle/Cost Cutters in Walmart Stores 48 48 Portfolio Brands 11 13 Total Company-owned salons 66 68 as a percent of total Franchise and Company-owned salons 1.4 % 1.4 % Total Franchise and Company-owned salons 4,811 4,863 _______________________________________________________________________________ (1) Canadian and Puerto Rican salons are included in the North American salon totals.
Schedule of summarized financial information of reportable operating segments	Financial information concerning the Company's reportable operating segments is shown in the table below. Segment information is presented in the same way that the Company internally organizes the business for assessing performance and making decisions regarding allocation of resources. In the second quarter of fiscal year 2023, the Company revised its internal reporting such the CODM’s primary measures of segment performance are revenue and segment adjusted EBITDA. Revenue and segment adjusted EBITDA are regularly reviewed by the CODM to make decisions about resources to be allocated to the segments, assess current performance and forecast future performance. Asset information by segment is not provided to the CODM. Segment adjusted EBITDA is defined as income from continuing operations before interest, income taxes, depreciation, amortization and impairment. C onsistent with our internal management reporting, unallocated expenses include certain items impacting comparability. These unallocated items are not defined terms within U.S. GAAP. They are based on how management views the business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance and are not attributable to either segment. Unallocated fees include one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired ROUA, lease termination fees and asset retirement obligation costs. Three Months Ended September 30, 2023 2022 (Dollars in thousands) Revenues: Franchise $ 51,436 $ 58,757 Company-owned 1,936 3,114 Total revenue 53,372 61,871 Segment adjusted EBITDA: Franchise 7,960 4,993 Company-owned (497) (1,169) Total 7,463 3,824 Unallocated expenses 141 (566) Depreciation and amortization (370) (1,251) Interest expense (6,188) (3,817) Income tax benefit (expense) 148 (28) Income from discontinued operations — 3,306 Total net income $ 1,194 $ 1,468

BASIS OF PRESENTATION OF UNAU_3

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Goodwill	$ 173,291	$ 173,791
Franchise Reporting Unit
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Goodwill	$ 173,300	$ 173,800

BASIS OF PRESENTATION OF UNAU_4

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Depreciation (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Accounting Policies [Abstract]
Asset retirement obligation, depreciation expense	$ 0	$ 0.2

REVENUE RECOGNITION - Revenue R

REVENUE RECOGNITION - Revenue Recognized (Details)	3 Months Ended
	Sep. 30, 2023
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Performance obligations expected to be satisfied, expected timing	10 years

REVENUE RECOGNITION - Receivabl

REVENUE RECOGNITION - Receivables, Broker Fees and Deferred Revenue (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Receivables from contracts with customers, net	$ 6,426	$ 5,683
Broker fees	11,623	12,471	$ 14,765	$ 15,592
Deferred revenue
Current	6,939	7,148
Non-current	21,540	23,151
Gift card liability
Deferred revenue
Current	1,764	1,823
Deferred franchise fees unopened salons
Deferred revenue
Non-current	2,217	2,312
Deferred franchise fees open salons
Deferred revenue
Current	5,175	5,325
Non-current	$ 19,323	$ 20,839

REVENUE RECOGNITION - Allowance

REVENUE RECOGNITION - Allowance For Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 7,297	$ 6,559
Provision for doubtful accounts	211	461
Provision for franchisee rent	167	19
Recoveries	(237)	0
Reclass of accrued rent	0	60
Write-offs	(991)	(725)
Other	(56)	0
Balance at end of period	$ 6,391	$ 6,374

REVENUE RECOGNITION - Additiona

REVENUE RECOGNITION - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Financing receivable	$ 0.9
Financing receivable, allowance for credit loss	0.2
Franchise Fees
Disaggregation of Revenue [Line Items]
Revenues	$ 1.7	$ 1.5

REVENUE RECOGNITION - Broker Fe

REVENUE RECOGNITION - Broker Fee Balance (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Change In Deferred Costs [Roll Forward]
Balance at beginning of period	$ 12,471	$ 15,592
Additions	0	0
Amortization	(739)	(827)
Write-offs	(109)	0
Balance at end of period	$ 11,623	$ 14,765

REVENUE RECOGNITION - Future Es

REVENUE RECOGNITION - Future Estimated Expected Revenue (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 24,498
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	24,498
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	3,881
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 3,881
Performance obligations expected to be satisfied, expected timing	9 months
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	$ 4,889
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 4,889
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 4,420
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 4,420
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 3,959
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 3,959
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 3,276
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 3,276
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 4,073
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 4,073
Performance obligations expected to be satisfied, expected timing

DISCONTINUED OPERATIONS - Addit

DISCONTINUED OPERATIONS - Additional Information (Details) - Opensalon Pro - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of businesses	$ 13	$ 5
Transaction fee		$ 0.5

DISCONTINUED OPERATIONS - Compo

DISCONTINUED OPERATIONS - Components of Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
General and administrative	$ (10,729)	$ (14,361)
Rent	(24,700)	(30,300)
Gain (loss) from OSP discontinued operations, net of tax	0	3,306
Opensalon Pro
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
OSP fees	0	(226)
General and administrative	0	(27)
Rent	0	(368)
Gain on sale of OSP	0	3,927
Gain (loss) from OSP discontinued operations, net of tax	$ 0	$ 3,306

SHAREHOLDERS' DEFICIT - Equity

SHAREHOLDERS' DEFICIT - Equity Awards Granted (Details)	3 Months Ended
	Sep. 30, 2023 shares
Restricted stock units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock granted (in shares)	259,403

SHAREHOLDERS' DEFICIT - Additio

SHAREHOLDERS' DEFICIT - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0.6	$ 0.5
Restricted stock units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years

SHAREHOLDERS' DEFICIT - Shares

SHAREHOLDERS' DEFICIT - Shares Issuance Program (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2023	Jun. 30, 2021
Subsidiary, Sale of Stock [Line Items]
Shares, issued (in shares)	0
Remaining shares (in shares)	16,500,000
Shelf Registration
Subsidiary, Sale of Stock [Line Items]
Sale of stock, authorized		$ 150,000,000
Prospectus Supplement
Subsidiary, Sale of Stock [Line Items]
Sale of stock, authorized		50,000,000
Remaining value	$ 11,600,000
At-The-Market
Subsidiary, Sale of Stock [Line Items]
Sale of stock, authorized		$ 50,000,000

INCOME TAXES - Summary of Incom

INCOME TAXES - Summary of Income Tax Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax benefit (expense)	$ 148	$ (28)
Effective tax rate	(14.10%)	(1.50%)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Sep. 30, 2023 USD ($)
Empire Education Group
Loss Contingencies [Line Items]
Title IV liabilities	$ 8.7

CASH, CASH EQUIVALENTS AND RE_3

CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 9,298	$ 9,508
Restricted cash, included in other current assets	10,749	11,888
Total cash, cash equivalents and restricted cash	$ 20,047	$ 21,396	$ 21,759	$ 27,464

LEASES - Narrative (Details)

LEASES - Narrative (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2023 USD ($) renewalOption lease	Sep. 30, 2022 USD ($)	Jun. 30, 2023
Lessee, Lease, Description [Line Items]
Franchise	$ 24,667	$ 30,330
Rent expense	$ 24,700	$ 30,300
Lessor, term of contract	5 years
Number of leases expected to be renewed | lease	1
Weighted average remaining lease term	5 years 7 months 24 days		5 years 6 months 7 days
Weighted average discount rate	4.60%		4.55%
Number of renewal options | renewalOption	1
Minimum
Lessee, Lease, Description [Line Items]
Lessee, term of contract	1 year
Lessee, renewal term	5 years
Maximum
Lessee, Lease, Description [Line Items]
Lessee, term of contract	20 years
Lessee, renewal term	10 years

LEASES - Real Estate Taxes and

LEASES - Real Estate Taxes and Other Occupancy Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Lessee, Lease, Description [Line Items]
Total	$ 24,700	$ 30,300
Non-Franchise Lease
Lessee, Lease, Description [Line Items]
Office rent	825	872
Lease termination (benefit) expense	(13)	458
Lease liability benefit	(128)	(602)
Franchise salon rent	(337)	(53)
Company-owned salon rent	750	1,078
Total	$ 1,097	$ 1,753

LEASES Future - Operating Lease

LEASES Future - Operating Lease Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Leases, Operating [Abstract]
Remainder of 2024	$ 70,651
2025	79,890
2026	66,426
2027	56,460
2028	47,908
Thereafter	73,496
Total future obligations	394,831
Less amounts representing interest	44,883
Present value of lease liability	349,948
Less short-term lease liability	78,006	$ 81,917
Long-term lease liability	271,942	$ 291,901
Sublease Income to be Received from Franchisees
Remainder of 2024	(68,629)
2025	(77,882)
2026	(64,605)
2027	(54,830)
2028	(46,254)
Thereafter	(70,459)
Total future obligations	(382,659)
Net Rent Commitments
Remainder of 2024	2,022
2025	2,008
2026	1,821
2027	1,630
2028	1,654
Thereafter	3,037
Total future obligations	12,172
Operating Segments | Franchise
Leases, Operating [Abstract]
Remainder of 2024	68,629
2025	77,882
2026	64,605
2027	54,830
2028	46,254
Thereafter	70,459
Total future obligations	382,659
Less amounts representing interest	43,445
Present value of lease liability	339,214
Less short-term lease liability	75,885
Long-term lease liability	263,329
Operating Segments | Company-owned
Leases, Operating [Abstract]
Remainder of 2024	1,044
2025	674
2026	454
2027	229
2028	218
Thereafter	56
Total future obligations	2,675
Less amounts representing interest	208
Present value of lease liability	2,467
Less short-term lease liability	1,132
Long-term lease liability	1,335
Unallocated Corporate
Leases, Operating [Abstract]
Remainder of 2024	978
2025	1,334
2026	1,367
2027	1,401
2028	1,436
Thereafter	2,981
Total future obligations	9,497
Less amounts representing interest	1,230
Present value of lease liability	8,267
Less short-term lease liability	989
Long-term lease liability	$ 7,278

FINANCING ARRANGEMENTS - Schedu

FINANCING ARRANGEMENTS - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Debt Instrument [Line Items]
Paid-in-kind interest	$ 2,032	$ 1,033
Long-term debt	$ 179,732	176,830
Line of Credit | Term Loan
Debt Instrument [Line Items]
Interest rate percentage	9.69%
Long-term debt, gross	$ 172,106	172,268
Deferred financing fees	(6,406)	(6,471)
Long-term debt	$ 165,700	165,797
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Interest rate percentage	9.69%
Long-term debt	$ 12,000	$ 10,000

FINANCING ARRANGEMENTS - Revolv

FINANCING ARRANGEMENTS - Revolving Credit Facility (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Aug. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Debt Instrument [Line Items]
Minimum liquidity		$ 10,000
Interest paid		4,800	$ 3,200
Liquidity amount		42,400
Cash, cash equivalents and marketable securities		9,300
Current liabilities		117,217		$ 126,335
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term line of credit		9,800
Unused borrowing capacity		$ 33,100
Line of Credit | Revolving Credit Facility | Variable Rate Component Two
Debt Instrument [Line Items]
Cash payment	4.25%
Paid-in-kind	2%
Line of Credit | Revolving Credit Facility | Variable Rate Component Three
Debt Instrument [Line Items]
Cash payment	4.25%
Paid-in-kind	3%
Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Variable Rate Component One
Debt Instrument [Line Items]
Variable rate	3.875%
Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Variable Rate Component Two
Debt Instrument [Line Items]
Variable rate	6.25%
Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Variable Rate Component Three
Debt Instrument [Line Items]
Variable rate	7.25%
Line of Credit | Revolving Credit Facility | Base Rate
Debt Instrument [Line Items]
Variable rate	1%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - shares	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
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)	4,176,371	3,211,485

SEGMENT INFORMATION - Reportabl

SEGMENT INFORMATION - Reportable Operating Segment Salons (Details)	Sep. 30, 2023 salon franchisee	Jun. 30, 2023 salon franchisee
Franchisor Disclosure [Line Items]
Number of salons | franchisee	4,811	4,863
Franchise
Franchisor Disclosure [Line Items]
Number of salons	4,745	4,795
Salons as a percent of total Company-owned and Franchise salons	98.60%	98.60%
Franchise | North American
Franchisor Disclosure [Line Items]
Number of salons	4,643	4,693
Franchise | International
Franchisor Disclosure [Line Items]
Number of salons	102	102
Franchise | Supercuts
Franchisor Disclosure [Line Items]
Number of salons	2,060	2,082
Franchise | SmartStyle/Cost Cutters in Walmart Stores
Franchisor Disclosure [Line Items]
Number of salons	1,373	1,388
Franchise | Portfolio Brands
Franchisor Disclosure [Line Items]
Number of salons	1,210	1,223
Company-owned
Franchisor Disclosure [Line Items]
Number of salons	66	68
Salons as a percent of total Company-owned and Franchise salons	1.40%	1.40%
Company-owned | Supercuts
Franchisor Disclosure [Line Items]
Number of salons	7	7
Company-owned | SmartStyle/Cost Cutters in Walmart Stores
Franchisor Disclosure [Line Items]
Number of salons	48	48
Company-owned | Portfolio Brands
Franchisor Disclosure [Line Items]
Number of salons	11	13

SEGMENT INFORMATION - Operating

SEGMENT INFORMATION - Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Revenues:
Revenues	$ 53,372	$ 61,871
Segment adjusted EBITDA:
Unallocated expenses	141	(566)
Depreciation and amortization	(370)	(1,251)
Interest expense	(6,188)	(3,817)
Income tax benefit (expense)	148	(28)
Income from discontinued operations	0	3,306
Net income	1,194	1,468
Operating Segments | Reportable Segments
Segment adjusted EBITDA:
Adjusted EBITDA	7,463	3,824
Operating Segments | Franchise
Revenues:
Revenues	51,436	58,757
Segment adjusted EBITDA:
Adjusted EBITDA	7,960	4,993
Operating Segments | Company-owned
Revenues:
Revenues	1,936	3,114
Segment adjusted EBITDA:
Adjusted EBITDA	$ (497)	$ (1,169)