QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Jun. 30, 2011

QUARTERLY FINANCIAL DATA (UNAUDITED)

QUARTERLY FINANCIAL DATA (UNAUDITED)

17. QUARTERLY FINANCIAL DATA (UNAUDITED)

        Summarized quarterly data for fiscal years 2011 and 2010 follows:

	Quarter Ended
	September 30		December 31		March 31			June 30			Year Ended
	(Dollars in thousands, except per share amounts)
2011
Revenues	$	578,245	$	574,372	$	581,267		$	591,985		$	2,325,869
Gross margin, excluding depreciation		257,558		251,132		253,017			261,614			1,023,321
Operating income (loss)(a)(b)		33,434		22,864		(59,504	)		7,154			3,948
Income (loss) from continuing operations(a)(b)(e)		18,320		14,505		(25,335	)		(16,395	)		(8,905	)
Net income (loss)(a)(b)(e)		18,320		14,505		(25,335	)		(16,395	)		(8,905	)
Income (loss) from continuing operations per share, basic		0.32		0.26		(0.45	)		(0.29	)		(0.16	)
Net income (loss) per basic share(f)		0.32		0.26		(0.45	)		(0.29	)		(0.16	)
Income (loss) from continuing operations per share, diluted		0.30		0.24		(0.45	)		(0.29	)		(0.16	)
Net income (loss) per diluted share(f)		0.30		0.24		(0.45	)		(0.29	)		(0.16	)
Dividends declared per share		0.04		0.04		0.06			0.06			0.20

Refer to Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 6 in this Form 10-K for explanations of items which impacted fiscal year 2011 revenues, operating and net income.

	Quarter Ended
	September 30		December 31		March 31			June 30		Year Ended
	(Dollars in thousands, except per share amounts)
2010
Revenues(c)	$	605,550	$	575,365	$	587,571		$	589,948	$	2,358,434
Gross margin, excluding depreciation(c)		259,967		254,564		260,199			264,397		1,039,127
Operating income (loss)(b)(c)		28,257		32,063		1,184			35,714		97,218
Income (loss) from continuing operations(b)		4,611		18,154		(1,525	)		18,339		39,579
Income from discontinued operations(d)		3,161		—		—			—		3,161
Net income (loss)(b)(d)		7,772		18,154		(1,525	)		18,339		42,740
Income (loss) from continuing operations per share, basic		0.09		0.32		(0.03	)		0.32		0.71
Income (loss) from discontinued operations per share, basic(d)		0.06		—		—			—		0.06
Net income (loss) per basic share(f)		0.14		0.32		(0.03	)		0.32		0.77
Income (loss) from continuing operations per share, diluted		0.09		0.30		(0.03	)		0.30		0.71
Income (loss) from discontinued operations per share, diluted(f)		0.06		—		—			—		0.05
Net income (loss) per diluted share(f)		0.14		0.30		(0.03	)		0.30		0.75
Dividends declared per share		0.04		0.04		0.04			0.04		0.16

Refer to Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 6 in this Form 10-K for explanations of items which impacted fiscal year 2010 revenues, operating and net income.

(a)

Operating income and net income decreased $31.2 million ($19.2 million net of tax) as a result of a valuation reserve on a note receivable with the purchase of Trade Secret that was recorded in the third quarter ($9.0 million) and fourth quarter ($22.2 million) of fiscal year 2011.

(b)

Expense of $74.1 million ($50.8 million net of tax) was recorded in the third quarter ended March 31, 2011 related to our Promenade salon concept goodwill impairment due to recent performance challenges in that concept. Expense of $35.3 million ($28.7 million net of tax) was recorded in the third quarter ended March 31, 2010 related to our Regis salon concept goodwill impairment due to recent performance challenges in that concept and current economic conditions.

(c)

The Company sold $20.0 million of product to the purchaser of Trade Secret at cost for the three months ended September 30, 2009.

(d)

During the second quarter ended December 31, 2008, the Company determined Trade Secret to be held for sale and accounted for it as a discontinued operation. An income tax benefit of $3.0 million was recorded in the first quarter ended September 30, 2009 to correct the prior year calculation of the income tax benefit related to the disposition of the Trade Secret concept.

(e)

Income (loss) from continuing operations and net income decreased as a result of $9.2 million that was recorded in the third quarter ($8.7 million) and in the fourth quarter ($0.5 million) as a result of an other than temporary impairment on an investment in preferred shares of Yamano and a premium paid at the time of an initial investment in MY Style.

(f)

Total is a recalculation; line items calculated individually may not sum to total.