Supercuts 2011 Annual Report Download - page 25

Table of Contents
Financial Information about Foreign and North American Operations
Financial information about foreign and North American markets is incorporated herein by reference to Management's Discussion and
Analysis of Financial Condition and Results of Operations in Part II, Item 7 and segment information in Note 16 to the Consolidated Financial
Statements in Part II, Item 8 of this Form 10-K.
Available Information
The Company is subject to the informational requirements of the Securities and Exchange Act of 1934 (Exchange Act). The Company
therefore files periodic reports, proxy statements and other information with the Securities and Exchange Commission (SEC). Such reports may
be obtained by visiting the Public Reference Room of the SEC at 100 F Street NE, Washington, DC 20549, or by calling the SEC at 1-800-SEC-
0330. In addition, the SEC maintains an internet site ( http://www.sec.gov ) that contains reports, proxy and information statements and other
information regarding issuers that file electronically.
Financial and other information can be accessed in the Investor Information section of the Company's website at www.regiscorp.com . The
Company makes available, free of charge, copies of its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-
K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable
after filing such material electronically or otherwise furnishing it to the SEC.
Item 1A. Risk Factors
Changes in the general economic environment may impact our business and results of operations.
Changes to the United States, Canadian, United Kingdom, Asian and other European economies have an impact on our business. General
economic factors that are beyond our control, such as interest rates, recession, inflation, deflation, tax rates and policy, energy costs,
unemployment trends, and other matters that influence consumer confidence and spending, may impact our business. In particular, visitation
patterns to our salons and hair restoration centers can be adversely impacted by increases in unemployment rates and decreases in discretionary
income levels.
If we continue to have negative same
-store sales our business and results of operations may be affected.
Our success depends, in part, upon our ability to improve sales, as well as both gross margins and operating margins. Comparable same-
store sales are affected by average ticket and same-store customer visits. A variety of factors affect same-store customer visits, including fashion
trends, competition, current economic conditions, changes in our product assortment, the success of marketing programs and weather conditions.
These factors may cause our comparable same-store sales results to differ materially from prior periods and from our expectations. Our
comparable same-store sales results for the twelve months ended June 30, 2011 declined 1.7 percent compared to the twelve months ended
June 30, 2010. We impaired $74.1 million of goodwill associated with our Promenade salon concept during fiscal year 2011. We impaired
$35.3 million of goodwill associated with our Regis salon concept during fiscal year 2010. We also impaired $41.7 million of goodwill
associated with our salon concepts in the United Kingdom during fiscal year 2009. If negative same-store sales continue and we are unable to
offset the impact with operational savings, our financial results may be further affected. We may be required to take additional impairment
charges and to impair certain long-lived assets and goodwill and such impairments could be material to our consolidated balance sheet and
results of operations. The concepts that have the highest likelihood of impairment are Promenade, Regis, and Hair Restoration Centers.
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