RCI Hospitality Sees Sales Uplift In Nightclubs, Challenges In Bombshells For 1Q24
Portfolio Pulse from Akanksha Bakshi
RCI Hospitality Holdings Inc (NASDAQ:RICK) reported a 5.9% year-over-year increase in preliminary first-quarter FY24 sales, reaching $73.3 million. Nightclubs sales rose by 8.4% to $60.6 million, boosted by FY23 acquisitions. However, Bombshells restaurant sales fell by 4.6% to $12.7 million, with same-store sales dropping significantly. The company's CEO, Eric Langan, noted an improving trend over the quarter, particularly in Nightclubs. RCI attributes the decline in same-store sales to tough comparisons with the post-COVID period. RCI's full 1Q24 financial results are expected by February 9, 2024. RICK shares dropped by 2.97% to $62.18.
January 09, 2024 | 3:02 pm
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RCI Hospitality reported increased sales in Nightclubs but faced challenges in Bombshells, with overall sales up 5.9% Y/Y. The stock price fell by 2.97% following the news.
The preliminary sales report shows a mixed performance, with Nightclubs doing well but Bombshells struggling. Despite the overall sales increase, the decline in same-store sales and the drop in share price indicate investor concern over the sustainability of growth, particularly in the Bombshells segment. The negative stock price reaction suggests a short-term bearish outlook.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100