8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549
FORM 8-K
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
October 28, 2004
Date of report (date of earliest event reported)
STEINER LEISURE LIMITED
(Exact Name of Registrant as Specified in Its Charter)
Commonwealth of The Bahamas
(State or other Jurisdiction of Incorporation)
0-28972	98-0164731
(Commission File Number)	(IRS Employer Identification No.)
Suite 104A, Saffrey Square
Nassau, The Bahamas	Not Applicable
(Address of Principal Executive Offices)	(Zip Code)
(242) 356-0006
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition

This Form 8-K is furnished to comply with the SEC requirement that the earnings press release of the registrant be furnished to the SEC under cover of Form 8-K. Steiner Leisure's earnings press release for the third quarter ending September 30, 2004 was issued after the close of regular trading on the Nasdaq National Market on October 27, 2004.

The information in this Form 8-K, including the exhibit, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general language in such filing, unless it is specifically identified therein as being incorporated therein by reference.

Item 9.01.  Financial Statement and Exhibits

3. Exhibits

99.1 - Press Release issued by Steiner Leisure Limited on October 27, 2004

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

STEINER LEISURE LIMITED

Date: October 28, 2004	/s/ Leonard I. Fluxman
	Leonard I Fluxman
	President and Chief Executive Officer

EX-99

Exhibit 99.1

STEINER LEISURE LIMITED
Post Office Box N-9306
Suite 104A
Nassau, The Bahamas

For Release: IMMEDIATELY

Contact:    Leonard I. Fluxman, President and Chief Executive Officer (305) 358-9002, ext. 215

Steiner Leisure Limited Announces Record Third Quarter 2004 Financial Results

NASSAU, THE BAHAMAS, October 27, 2004 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the third quarter ended September 30, 2004.

Steiner Leisure's revenues for the third quarter ended September 30, 2004 rose 20.2% to $90.1 million from $75.0 million during the comparable quarter in 2003. Income from continuing operations, before discontinued operations for the third quarter, was $9.3 million compared with $7.0 million for the same quarter in 2003.

Earnings per share before discontinued operations for the third quarter ended September 30, 2004 was $0.52 per share, compared with $0.41 per share for the comparable quarter in 2003. The earnings per share data are presented on a diluted basis.

Revenues for the nine months ended September 30, 2004, rose 23.3% to $254.0 million from $206.0 million during the comparable nine months in 2003. Income from continuing operations, before discontinued operations for the nine months ended September 30, 2004 was $25.9 million compared with $17.5 million for the same nine months in 2003.

Earnings per share before discontinued operations for the nine months ended September 30, 2004 was $1.49 per share compared with $1.05 per share for the comparable nine months in 2003. The above earnings per share data are presented on a diluted basis.

Leonard I. Fluxman, President and Chief Executive Officer of Steiner Leisure, commented "We are very pleased with our third consecutive quarter of record financial results. We were able to achieve these record results despite challenges posed by a very active hurricane season. We were able to meet those challenges through continued strong execution by our personnel."

Steiner Leisure Limited is a worldwide provider of spa services. The Company's operations include spas and salons on 114 cruise ships, and in 63 resort spas and two luxury day spas. Our cruise line and land-based resort customers include Carnival Cruise Line, Caesars Entertainment, Celebrity Cruises, Crystal Cruises, Cunard/Seabourn Cruise Lines, Hilton Hotels, Holland America Line, Kerzner International, Marriott Hotels, Norwegian Cruise Lines, Princess Cruises and Royal Caribbean Cruises. Our Elemis Limited subsidiary manufactures its Elemis® brand products for use in our cruise ship and land-based spas. This top quality European line of beauty products is also distributed worldwide to exclusive hotels, salons, health clubs and destination spas. Elemis®, as well as other Steiner products, including La Therapie®, Ionithermie, and Steiner Hair Care, are available at www.timetospa.com.

Steiner Leisure also owns and operates three post secondary schools (comprised of a total of seven campuses) located in Miami, Fort Lauderdale, Orlando and Sarasota, Florida; Baltimore, Maryland; York, Pennsylvania and Charlottesville, Virginia. Offering degree and non-degree programs in massage therapy and skin care, these schools train and qualify spa professionals for health and beauty positions within the Steiner family of companies or other industry entities.

The Company will be holding a conference call at 11:00 am (EST) on Thursday, October 28, 2004. Clive E. Warshaw, Chairman of the Board, and Leonard I. Fluxman, President and Chief Executive Officer, will discuss the contents of this press release.

If you wish to participate in this conference call, please call (706) 679-5917 for domestic and international calls approximately ten minutes before the scheduled time. This call is available for replay from Thursday. October 28, 2004 (approximately 3 hours after the call takes place) until Tuesday, November 2, 2004 at 5:00 pm. You may reach it by dialing (706) 645-9291 for both domestic and international calls. The conference ID # is 1268105.

SELECTED FINANCIAL DATA

($ in thousands, except per share data)

(Unaudited)

		Third Quarter Ended						Nine Months Ended
		September 30,						September 30,
				2004		2003			2004		2003
Revenues:
Services	$			61,666	$	52,717	$		174,438	$	144,489
Products				28,434		22,246			79,595		61,471
Total revenues				90,100		74,963			254,033		205,960
Cost of Sales:
Cost of services				48,952		42,156			137,997		116,238
Cost of products				21,335		16,631			58,964		46,049
Total cost of sales				70,287		58,787			196,961		162,287
Gross profit				19,813		16,176			57,072		43,673
Operating Expenses:
Administrative				4,652		3,777			13,340		10,482
Salary and payroll taxes				4,930		4,199			14,613		12,616
Total operating expenses				9,582		7,976			27,953		23,098
Income from continuing operations				10,231		8,200			29,119		20,575
Other Income (Expense):
Interest expense				(224	)	(832	)		(1,478	)	(2,651)
Equity and minority interest				101		111			292		257
Other income				45		68			86		493
Total other income (expense)				(78	)	(653	)		(1,100	)	(1,901)
Income from continuing operations before provision for income taxes and discontinued operations				10,153		7,547			28,019		18,674
Provision for income taxes				875		562			2,159		1,204
Income from continuing operations before discontinued operations				9,278		6,985			25,860		17,470
Loss from discontinued operations (which includes loss on disposal of $3 and $8 and $94 and $1,642 for the three and nine months ended September 30, 2004 and 2003, respectively), net of taxes				(23	)	(135	)		(120	)	(3,269)
Net income	$			9,255	$	6,850	$		25,740	$	14,201
Income (loss) per share-Basic:
Income before discontinued operations			$	0.55	$	0.43	$		1.55	$	1.07
Loss from discontinued operations				--		(0.01	)		(0.01	)	(0.20)
			$	0.55	$	0.42	$		1.54	$	0.87
Income (loss) per share-Diluted:
Income before discontinued operations			$	0.52	$	0.41	$		1.49	$	1.05
Loss from discontinued operations				--		--			(0.01	)	(0.20)
			$	0.52	$	0.41	$		1.48	$	0.85
Weighted average shares outstanding:
Basic				16,981		16,418			16,711		16,399
Diluted				17,900		16,862			17,404		16,611

STATISTICS

		Third Quarter Ended						Nine Months Ended
		September 30,						September 30,
		2004			2003				2004			2003
Average number of ships served1:		112		105			109				102
Spa		77		69			75				67
Non-Spa		35		36			34				36
Average total number of staff on ships served:		1,514		1,381			1,464				1,316
Spa		1,278		1,127			1,234				1,075
Non-Spa		236		254			230				241
Revenue per staff per day2:	$	448	$	410		$	426			$	391
Spa	$	470	$	434		$	448			$	418
Non-Spa	$	330	$	303		$	308			$	272
Average weekly revenues:	$	42,317	$	37,761		$	39,967			$	35,169
Spa	$	54,637	$	49,642		$	51,641			$	47,189
Non-Spa	$	15,464	$	14,968		$	14,422			$	12,786
Average number of land-based spas operated3,4,5		52		48			52				48
Average weekly land-based spas revenues5	$	23,905	$	22,405		$	24,361			$	21,129
Total schools revenues6	$	4,379,000	$	4,120,000		$	13,253,000			$	12,455,000
Total wholesale and retail product revenues	$	6,935,000	$	4,739,000		$	20,291,000			$	13,623,000

_____________

1 Average number of ships served reflects the fact that during the period ships were in and out of service and, accordingly, the number of ships served during the year varied.

2 Revenue includes all sales of services and products on ships. Staff includes all shipboard employees. Per day refers to each day that a cruise ship is in service.

3 Excludes the effect of 14 land-based resort spas that we operate through joint ventures in which we own a 49% interest.

4 Average number of land-based day spas operated reflects the fact that during the period spas were opened or closed and, accordingly, the number of spas served during the period varied.

5 Includes resort spas and two spas referred to as "day spas" in prior statistical presentations.

6 Includes $191,000 and $215,000 for the three months ended September 30, 2004 and 2003, respectively, and $591,000 and $530,000 for the nine months ended September 30, 2004 and 2003, respectively, relating to the Steiner training school near London, England.