RCI Hospitality Holdings, Inc. (NASDAQ: RICK) has reported its club and restaurant sales for the fiscal third quarter ended June 30, 2024. The company announced that total nightclubs sales increased by 0.7% to $62.4 million compared to the year-ago quarter, primarily driven by a 1.7% increase in same-store sales and the addition of two new and reformatted clubs. However, total sales for Bombshells declined by 8.9% to $13.1 million, reflecting a 16.2% decline in same-store sales.
In terms of the company's financial moves, RCI's board of directors has authorized an increase in the amount available under the company's share repurchase program by $25.0 million. Additionally, the company has formally withdrawn applications to operate casinos from the Colorado Division of Gaming.
After Hurricane Beryl made landfall in the greater Houston area, RCI reported that four Bombshells opened on Monday following the hurricane, with a fifth opening on Tuesday, and a club on Wednesday. However, some properties are still waiting for electricity to be restored.
Eric Langan, President & CEO of RCI, commented on the company's performance, highlighting the increase in same-store sales for nightclubs since the second quarter of 2023 and the initial success of the current club reformatting program. He also mentioned the sequential increase in Bombshells' total sales, reflecting changes initiated mid-February.
Looking at the overall performance, the combined club and restaurant sales for the third quarter amounted to $75.5 million, representing a decrease of 1.1% compared to the year-ago quarter. However, total nightclubs sales for the first nine months of 2024 increased by 4.3% to $181.9 million, while Bombshells' sales declined by 8.0% to $38.6 million for the same period.
Following these announcements, the company's shares moved 15.1%, and are now trading at a price of $44.33. For the full picture, make sure to review RCI Hospitality's 8-K report.
