v3.26.1
LEASES (Tables)
 12 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Schedule of Total Rent from Continuing Operations Total rent includes the following:
Fiscal Years
202620252024
(Dollars in thousands)
Office and warehouse rent (1)$2,765 $2,855 $3,075 
Lease termination expense (2)557 386 101 
Lease liability benefit (3)(219)(289)(326)
Franchise salon rent 222 856 596 
Company-owned salon rent (4)10,127 6,679 2,079 
Total$13,452 $10,487 $5,525 
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(1)Rental income associated with the sublease of the corporate office space is recorded in other income and was $1.3 million and $1.2 million for the years ended June 30, 2026, and 2025, respectively.
(2)Costs incurred to exit salons before the lease end date in order to relieve the Company of future lease obligations.
(3)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.
(4)Includes rent related to the salons acquired in the December 2024 Alline Acquisition. See Note 16 to the Consolidated Financial Statements.
Schedule of Future Operating Lease Commitments, Lessor
As of June 30, 2026, 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 YearLeases for Franchise SalonsLeases for Company-Owned SalonsCorporate LeasesTotal Operating Lease CommitmentsSublease Income to be Received from FranchiseesNet Rent Commitments
2027$54,950 $6,990 $1,401 $63,341 $(54,950)$8,391 
202846,053 5,405 1,436 52,894 (46,053)6,841 
202935,608 3,622 1,472 40,702 (35,608)5,094 
203023,670 2,181 1,509 27,360 (23,670)3,690 
203111,392 960 — 12,352 (11,392)960 
Thereafter15,816 231 — 16,047 (15,816)231 
Total future obligations$187,489 $19,389 $5,818 $212,696 $(187,489)$25,207 
Less amounts representing interest25,901 2,051 455 28,407 
Present value of lease liabilities$161,588 $17,338 $5,363 $184,289 
Less current lease liabilities46,600 6,018 1,206 53,824 
Long-term lease liabilities$114,988 $11,320 $4,157 $130,465 
Schedule of Future Operating Lease Commitments, Lessee
As of June 30, 2026, 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 YearLeases for Franchise SalonsLeases for Company-Owned SalonsCorporate LeasesTotal Operating Lease CommitmentsSublease Income to be Received from FranchiseesNet Rent Commitments
2027$54,950 $6,990 $1,401 $63,341 $(54,950)$8,391 
202846,053 5,405 1,436 52,894 (46,053)6,841 
202935,608 3,622 1,472 40,702 (35,608)5,094 
203023,670 2,181 1,509 27,360 (23,670)3,690 
203111,392 960 — 12,352 (11,392)960 
Thereafter15,816 231 — 16,047 (15,816)231 
Total future obligations$187,489 $19,389 $5,818 $212,696 $(187,489)$25,207 
Less amounts representing interest25,901 2,051 455 28,407 
Present value of lease liabilities$161,588 $17,338 $5,363 $184,289 
Less current lease liabilities46,600 6,018 1,206 53,824 
Long-term lease liabilities$114,988 $11,320 $4,157 $130,465 
Schedule of Supplemental Operating Cash Flow Information and Non-Cash Activity Related to Operating Leases
Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows:
Fiscal Years
202620252024
(Dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities (1)$44,946 $46,084 $48,747 
Right of use assets obtained in exchange for new lease liabilities— — 235 
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(1)Cash paid for amounts included in the measurement of lease liabilities includes rent, common area maintenance, termination fees, settlements and legal fees, and commission payments. Other than leases with Walmart, franchisees pay landlords directly.