RCI Hospitality Provides Q2 Business Update, Shares Down

RCI Hospitality Holdings, Inc. RICK provided an update on its business for the second quarter of fiscal 2025. The company expects to release second-quarter fiscal 2025 results by May 12, 2025. Following the news, its shares declined 7.2% yesterday.

Details of RICK’s Q2 Revenues

During the fiscal second quarter, RICK reported total sales of $65.4 million, indicating a decline of 8.9% year over year. Same-store sales declined 4.7% year over year.

Sales from Nightclubs were $57.1 million, down 3.1% year over year. The company’s sales were impacted by a decline in same-store sales and the temporary closure of one club due to a fire in July 2024. However, these factors were partially offset by contributions from five new or remodeled clubs that are not yet included in same-store sales metrics. Moreover, same-store sales experienced a decline of 3.5%.

Bombshells reported sales of $8.2 million in the latest quarter, marking a year-over-year decline of 35.6%. Total sales were influenced by the divestiture and closure of five locations during fourth-quarter fiscal 2024 and first-quarter fiscal 2025. Moreover, same-store sales experienced a significant decline of 13.4%.

Shares of the company have lost 29.6% in the past year compared with the industry’s 15.1% decline.

RICK’s Zacks Rank & Other Key Picks

RCI Hospitality currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Zacks Consumer Discretionary sector are WW International, Inc. WW, Life Time Group Holdings, Inc. LTH and Carnival Corporation & plc CCL.

WW International currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks Rank #1 stocks here.

WW delivered a trailing four-quarter earnings surprise of 88.2%, on average. The stock has dropped 55.1% year to date. The Zacks Consensus Estimate for WW International’s 2025 sales implies a decline of 2.3%, while the same for earnings per share (EPS) indicates growth of 48.8% from the year-ago levels.

Life Time Group presently sports a Zacks Rank of 1. LTH delivered a trailing four-quarter earnings surprise of 21.6%, on average. The stock has gained 47.1% year to date.

The consensus estimate for Life Time Group’s 2025 sales and EPS implies growth of 12.9% and 37.9%, respectively, from the year-ago levels.

Carnival currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of negative 458.4%, on average. The stock has gained 11.6% in the past year.
 
The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS indicates growth of 4.2% and 30.3%, respectively, from year-ago levels.

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This article originally published on Zacks Investment Research (zacks.com).

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