Regis sales down on tough retail conditions
The company reported that fourth quarter revenues were $568m, compared with $592m in the corresponding period last year, a decrease of 3.0 percent.
The services division reported that sales were $429m, compared to $452m in the corresponding quarter of 2011, while the products division recorded sales of $128m, compared to $129m in the same period last year.
Downward trend for the business
For the previous third quarter the company announced that sales had slipped 1.3 percent to $573m compared to the corresponding period last year, while same-store sales fell by 3.4 percent.
The company serves the hair salon, hair restoration and hair care product categories, and is present in both the United States, and to a lesser extent the European market.
In recent financial quarters it has felt the impact of the financial downtown, as many consumers tighten their spending, resorting to at-home hair care products and services, as opposed to making salon visits.
Restructuring aimed at strengthening the business
Currently the business is divided into three principle division – services, products and the much smaller royalties and fees division. Company executive vice president and interim CEO Eric Bakken, explained how restructuring implemented during the course of the last quarter is aimed at getting the business back on track.
“During the quarter, we realigned our business into four distinct consumer segments and restructured our field organization around these segments,” he explained.
“This reorganization increased focus, freed up resources and allowed us to establish a robust human resource function, which will help us hire and retain the best talent in our salons.”
The restructuring is focused on the salon part of the business, and aims to make changes that will improve the salon experience for its customers, with the ultimate goal of increasing footfall into the business premises.
“Meaningful change is underway at Regis and, as we look forward to fiscal 2013, we expect these changes will drive improvement in our same-store sales results," said Bakken.
