LEASES (Tables)

6 Months Ended

Dec. 31, 2024

Leases [Abstract]

Schedule of Real Estate Taxes and Other Occupancy Expenses

Total rent includes the following:

	Three Months Ended December 31,				Six Months Ended December 31,
	2024		2023		2024		2023
	(Dollars in thousands)
Office rent (1)	$	700	$	748	$	1,426	$	1,574
Lease termination expense	27		174		79		161
Lease liability benefit (2)	(65)		(95)		(128)		(223)
Franchise salon rent (3)	881		(96)		952		(434)
Company-owned salon rent (4)	606		663		884		1,413
Total	$	2,149	$	1,394	$	3,213	$	2,491

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(1)Rental income associated with the sublease of corporate office space is recorded in other income and was $0.3 million and $0.6 million for the three and six months ended December 31, 2024, 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 and six months ended December 31, 2023, due to settlements with landlords for less than previously accrued.

(4)Note that this amount includes 12 days of rent related to the Alline salons acquired during the quarter. See Note 13.

Schedule of Lessor, Future Operating Lease Commitments

As of December 31, 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	$	36,048	$	4,270	$	672	$	40,990	$	(36,048)	$	4,942
2026	64,630		6,864		1,367		72,861		(64,630)		8,231
2027	56,168		4,941		1,401		62,510		(56,168)		6,342
2028	47,900		3,755		1,436		53,091		(47,900)		5,191
2029	37,938		2,746		1,472		42,156		(37,938)		4,218
Thereafter	40,076		5,323		1,509		46,908		(40,076)		6,832
Total future obligations	$	282,760	$	27,899	$	7,857	$	318,516	$	(282,760)	$	35,756
Less amounts representing interest	34,429		5,407		837		40,673
Present value of lease liability	$	248,331	$	22,492	$	7,020	$	277,843
Less short-term lease liability	57,955		11,932		1,084		70,971
Long-term lease liability	$	190,376	$	10,560	$	5,936	$	206,872

Schedule of Lessee, Future Operating Lease Commitments

As of December 31, 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	$	36,048	$	4,270	$	672	$	40,990	$	(36,048)	$	4,942
2026	64,630		6,864		1,367		72,861		(64,630)		8,231
2027	56,168		4,941		1,401		62,510		(56,168)		6,342
2028	47,900		3,755		1,436		53,091		(47,900)		5,191
2029	37,938		2,746		1,472		42,156		(37,938)		4,218
Thereafter	40,076		5,323		1,509		46,908		(40,076)		6,832
Total future obligations	$	282,760	$	27,899	$	7,857	$	318,516	$	(282,760)	$	35,756
Less amounts representing interest	34,429		5,407		837		40,673
Present value of lease liability	$	248,331	$	22,492	$	7,020	$	277,843
Less short-term lease liability	57,955		11,932		1,084		70,971
Long-term lease liability	$	190,376	$	10,560	$	5,936	$	206,872