LEASES (Tables)

3 Months Ended

Sep. 30, 2024

Leases [Abstract]

Schedule of Real Estate Taxes and Other Occupancy Expenses

Total rent includes the following:

	Three Months Ended September 30,
	2024		2023
	(Dollars in thousands)
Office rent (1)	$	726	$	825
Lease termination expense (benefit)	52		(13)
Lease liability benefit (2)	(62)		(128)
Franchise salon rent (3)	71		(337)
Company-owned salon rent	277		750
Total	$	1,064	$	1,097

_______________________________________________________________________________

(1)The company leases four floors at its corporate office location. Three of the four floors have been subleased to third party tenants. Rental income associated with the sublease of the corporate office space is recorded in other income and was $0.2 million and $0 for the three months ended September 30, 2024, and 2023, respectively.

(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)Franchise salon rent is a benefit in the three months ended September 30, 2023, due to settlements with landlords for less than previously accrued.

Schedule of Lessor, Future Operating Lease Commitments

As of September 30, 2024, 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 2025	$	59,802	$	500	$	1,003	$	61,305	$	(59,802)	$	1,503
2026	68,758		500		1,367		70,625		(68,758)		1,867
2027	58,678		295		1,401		60,374		(58,678)		1,696
2028	49,238		286		1,436		50,960		(49,238)		1,722
2029	38,466		126		1,472		40,064		(38,466)		1,598
Thereafter	38,604		12		1,509		40,125		(38,604)		1,521
Total future obligations	$	313,546	$	1,719	$	8,188	$	323,453	$	(313,546)	$	9,907
Less amounts representing interest	37,102		175		910		38,187
Present value of lease liability	$	276,444	$	1,544	$	7,278	$	285,266
Less short-term lease liability	65,533		564		1,064		67,161
Long-term lease liability	$	210,911	$	980	$	6,214	$	218,105

Schedule of Lessee, Future Operating Lease Commitments

As of September 30, 2024, 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 2025	$	59,802	$	500	$	1,003	$	61,305	$	(59,802)	$	1,503
2026	68,758		500		1,367		70,625		(68,758)		1,867
2027	58,678		295		1,401		60,374		(58,678)		1,696
2028	49,238		286		1,436		50,960		(49,238)		1,722
2029	38,466		126		1,472		40,064		(38,466)		1,598
Thereafter	38,604		12		1,509		40,125		(38,604)		1,521
Total future obligations	$	313,546	$	1,719	$	8,188	$	323,453	$	(313,546)	$	9,907
Less amounts representing interest	37,102		175		910		38,187
Present value of lease liability	$	276,444	$	1,544	$	7,278	$	285,266
Less short-term lease liability	65,533		564		1,064		67,161
Long-term lease liability	$	210,911	$	980	$	6,214	$	218,105