Management's Discussion and Analysis of Financial Condition and Results of
Operations (MD&A) is designed to provide a reader of our consolidated financial
statements with a narrative from the perspective of our management on our
financial condition, results of operations, liquidity and certain other factors
that may affect our future results. This MD&A should be read in conjunction with
the MD&A included in our June 30, 2021 Annual Report on Form 10-K and other
documents filed or furnished with the SEC during the current fiscal year.

MANAGEMENT'S OVERVIEW

Regis Corporation (RGS) franchises hairstyling and hair care salons throughout
the United States, Canada, Puerto Rico and the United Kingdom. As of March 31,
2022, the Company franchised, owned or held ownership interests in 5,697
worldwide locations. Our locations consisted of 5,621 system-wide North American
and international salons, and in 76 locations we maintained a non-controlling
ownership interest less than 100 percent. Each of the Company's salon concepts
generally offer similar salon products and services and serve the mass
market. As of March 31, 2022, the Company had 735 employees worldwide.

COVID-19 Impact



During the periods ended March 31, 2022 and 2021, the COVID-19 pandemic had an
adverse impact on operations. The COVID-19 pandemic continues to impact salon
guest visits and franchisee staffing, resulting in a significant reduction in
revenue and profitability. In response to COVID-19, the Canada Emergency Wage
Subsidy (CEWS), Canada Emergency Rent Subsidy (CERS) and the U.S. employee
retention payroll tax credit were introduced for eligible employers. In fiscal
years 2022 and 2021, the Company received $1.9 and $1.6 million, respectively,
in CEWS and $1.2 and $0.0 million, respectively, in CERS that partially cover
expenses incurred in Canada during those years. In fiscal year 2021, the Company
recorded a $1.5 million benefit related to the U.S. employee retention payroll
tax credit. Additionally, in December 2021 the Company paid $2.5 million of
social security contributions that had been deferred under the CARES Act.
Overall, COVID-19 has, and may continue to have, a negative effect on revenue
and profitability. The ultimate impact of the COVID-19 pandemic in both the
short and long term is not currently estimable due to the uncertainty
surrounding the duration of the pandemic, the availability and acceptance of
preventative vaccines, the emergence and impact of new COVID-19 variants, and
changing government restrictions. Additional impacts to the business may arise
that we are not aware of currently.

Merchandising Strategy



As part of the Company's transformation to focus on managing and nurturing
brands, and in line with its capital-light business, a new merchandise strategy
to outsource product distribution was adopted in the third quarter of fiscal
year 2021. The Company has shifted its product business from a wholesale model
to a third-party distribution model. Management expects the change will
positively impact franchisees by providing them access to industry-leading
pricing, loyalty programs, promotional benefits, educational assets, and ongoing
support. The Company will receive a fee from the third-party distributors which
is included in fees on the interim unaudited Condensed Consolidated Statement of
Operations. The change is expected to result in product sales to franchisees
providing significantly less revenue by the end of fiscal year 2022.

CRITICAL ACCOUNTING POLICIES



The interim unaudited Condensed Consolidated Financial Statements are prepared
in conformity with accounting principles generally accepted in the United States
of America. In preparing the interim unaudited Condensed Consolidated Financial
Statements, we are required to make various judgments, estimates and assumptions
that could have a significant impact on the results reported in the interim
unaudited Condensed Consolidated Financial Statements. We base these estimates
on historical experience and other assumptions believed to be reasonable under
the circumstances. Estimates are considered to be critical if they meet both of
the following criteria: (1) the estimate requires assumptions about material
matters that are uncertain at the time the accounting estimates are made and
(2) other materially different estimates could have been reasonably made or
material changes in the estimates are reasonably likely to occur from period to
period. Changes in these estimates could have a material effect on our interim
unaudited Condensed Consolidated Financial Statements.

Our significant accounting policies can be found in Note 1 to the Consolidated
Financial Statements contained in Part II, Item 8 of the June 30, 2021 Annual
Report on Form 10-K, as well as Notes 1 and 2 to the unaudited Condensed
Consolidated Financial Statements contained within this Quarterly Report on
Form 10-Q. We believe the accounting policies related to the valuation of
goodwill, the valuation and estimated useful lives of long-lived assets,
estimates used in relation to tax liabilities and deferred taxes are most
critical to aid in fully understanding and evaluating our reported financial
condition and results of operations. Discussion of each of these policies is
contained under "Critical Accounting Policies" in Part II, Item 7 of our
June 30, 2021 Annual Report on Form 10-K. Our policies related to revenue
recognition guidance can be found in Note 2 to the unaudited Condensed
Consolidated Financial Statements.

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RESULTS OF OPERATIONS

System-wide results



As an asset-light franchise platform, our results are impacted by our
system-wide sales, which include sales by all points of distribution, whether
owned by our franchisees or the Company. While we do not record sales by
franchisees as revenue, and such sales are not included in our unaudited
Condensed Consolidated Financial Statements, we believe that this operating
measure is important in obtaining an understanding of our financial performance.
We believe system-wide sales information aids in understanding how we derive
royalty revenue and in evaluating performance.

System-wide same-store sales (1) by concept are detailed in the table below:

                                                            Three Months Ended March 31,             Nine Months Ended March 31,
                                                             2022                 2021                2022                 2021

SmartStyle                                                     (2.5) %             (19.6) %              8.8  %             (28.7) %
Supercuts                                                      17.8                (22.3)               26.0                (29.9)
Portfolio Brands                                                4.0                (17.9)               13.2                (26.6)
Consolidated system-wide same-store sales                       8.6  %             (20.7) %             17.8  %             (28.7) %


_______________________________________________________________________________

(1)Fiscal year 2022 system-wide same-store sales are calculated as the total
change in sales for system-wide franchise and company-owned locations that were
open on a specific day of the week during the current period and the
corresponding prior period. Fiscal year 2021 system-wide same-store sales are
calculated as the total change in sales for system-wide franchise and
company-owned locations open for more than one year that were open on a specific
day of the week during the current period and the corresponding prior period.
Quarterly and year-to-date system-wide same-store sales are the sum of the
system-wide same-store sales computed on a daily basis. Franchise salons that do
not report daily sales are excluded from same-store sales. System-wide
same-store sales are calculated in local currencies to remove foreign currency
fluctuations from the calculation.

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