LEASES (Tables)

9 Months Ended

Mar. 31, 2023

Leases [Abstract]

Schedule of Real Estate Taxes and Other Occupancy Expenses

Total rent includes the following:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
	(Dollars in thousands)
Office and warehouse rent	$	875	$	941	$	2,581	$	3,756
Lease termination expense (1)	266		225		1,571		1,803
Lease liability benefit (2)	(297)		(357)		(1,515)		(3,284)
Franchise salon rent (3)	415		(464)		372		111
Company-owned salon rent	818		855		2,911		3,603
Total	$	2,077	$	1,200	$	5,920	$	5,989

_______________________________________________________________________________

(1)During the three and nine months ended March 31, 2023, the Company incurred costs of $0.3 and $1.6 million, respectively, to exit salons before the lease end date in order to relieve the Company of future lease obligations. During the three months ended March 31, 2022, the Company incurred costs of $0.2 million to exit salons before the lease end date to relieve the Company of future lease obligations. During the nine months ended March 31, 2022, the Company paid $0.9 million to exit its distribution centers before the lease end dates and incurred costs of $0.9 million to exit salons before the lease end dates in order to relieve the Company of future lease obligations.

(2)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.

(3)The credit in franchise salon rent in the three months ended March 31, 2022 related to lower estimated exposure.

Lessor, Future Operating Lease Commitments

As of March 31, 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 2023	$	25,914	$	580	$	533	$	27,027	$	(25,914)	$	1,113
2024	96,190		1,518		1,301		99,009		(96,190)		2,819
2025	80,179		556		1,334		82,069		(80,179)		1,890
2026	66,643		334		1,367		68,344		(66,643)		1,701
2027	56,803		104		1,401		58,308		(56,803)		1,505
Thereafter	119,086		123		4,417		123,626		(119,086)		4,540
Total future obligations	$	444,815	$	3,215	$	10,353	$	458,383	$	(444,815)	$	13,568
Less amounts representing interest	51,483		155		1,406		53,044
Present value of lease liability	$	393,332	$	3,060	$	8,947	$	405,339
Less short-term lease liability	84,069		1,842		1,163		87,074
Long-term lease liability	$	309,263	$	1,218	$	7,784	$	318,265

Lessee, Future Operating Lease Commitments

As of March 31, 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 2023	$	25,914	$	580	$	533	$	27,027	$	(25,914)	$	1,113
2024	96,190		1,518		1,301		99,009		(96,190)		2,819
2025	80,179		556		1,334		82,069		(80,179)		1,890
2026	66,643		334		1,367		68,344		(66,643)		1,701
2027	56,803		104		1,401		58,308		(56,803)		1,505
Thereafter	119,086		123		4,417		123,626		(119,086)		4,540
Total future obligations	$	444,815	$	3,215	$	10,353	$	458,383	$	(444,815)	$	13,568
Less amounts representing interest	51,483		155		1,406		53,044
Present value of lease liability	$	393,332	$	3,060	$	8,947	$	405,339
Less short-term lease liability	84,069		1,842		1,163		87,074
Long-term lease liability	$	309,263	$	1,218	$	7,784	$	318,265