Supercuts 2010 Annual Report Download - page 59

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Table of Contents
The percentage increases (decreases) during the years ended June 30, 2010, 2009, and 2008 were due to the following factors.
We did not acquire any international salons during the twelve months ended June 30, 2010. The organic sales increase was primarily due
to the rebranding of certain salons that had previously been operating under a different salon concept, partially offset by a decrease in same-
store sales of 3.8 percent for the twelve months ended June 30, 2010. The foreign currency impact during fiscal year 2010 resulted from the
weakening of the United States dollar against the British Pound and Euro as compared to the exchange rates for fiscal year 2009. We closed 42
company-owned salons during the twelve months ended June 30, 2010, of which 29 related to the June 2009 plan to close underperforming
salons in the United Kingdom.
We did not acquire any international salons during the twelve months ended June 30, 2009. The organic sales decline was primarily due to
a decrease of same-store sales of 7.2 percent for the twelve months ended June 30, 2009, partially offset by the four company-owned
international salons constructed. The foreign currency impact during fiscal year 2009 resulted from the strengthening of the United States dollar
against the British Pound and Euro as compared to the exchange rates for fiscal year 2008. Franchise revenues decreased primarily due to the
merger of our continental Europe franchise salon operations with Franck Provost Salon Group on January 31, 2008.
We acquired 25 international salons during the twelve months ended June 30, 2008, none of which were franchise buybacks. The decrease
in organic growth was due to a decrease of same-store sales of 4.3 percent for the twelve months ended June 30, 2008 and due to an additional
week in the fiscal year 2007 reporting period as compared to the fiscal year 2008 reporting period. This decrease was partially offset by the 15
company-owned international salons constructed and the inclusion of the four United Kingdom Sassoon schools for the twelve months ended
June 30, 2008. The foreign currency impact during fiscal year 2008 was driven by the weakening of the United States dollar against the British
Pound and Euro as compared to the exchange rates for fiscal year 2007. Franchise revenues decreased primarily due to the merger of our
continental Europe franchise salon operations with Franck Provost Salon Group on January 31, 2008.
57
Percentage Increase
(Decrease)
in Revenues
For the Years
Ended June 30,
2010 2009 2008
Acquisitions (previous twelve months)
—
%
—
%
4.1
%
Organic
1.5
(4.8
)
(0.7
)
Foreign currency
(2.9
)
(14.5
)
4.5
Franchise revenues
—
(
9.2
)
(5.9
)
Closed salons
(7.6
)
(4.5
)
(1.0
)
(9.0
)%
(33.0
)%
1.0
%