Solving problems through strategic initiatives

Release Date: November 6, 2024

For a full transcript of the earnings call, see full transcript of the earnings call.

Regis Corp (NASDAQ:RGS) achieved a 2% increase in adjusted EBITDA margin, indicating improved operating efficiency.
The company reported an increase in adjusted earnings per share to $0.93 from $0.71 in the prior year, indicating improved profitability.
Regis Corp (NASDAQ:RGS) successfully launched the Supercuts Rewards loyalty program across all Supercuts salons to increase customer engagement.
The implementation of the Zenoti point-of-sale system has been completed, enhancing digital capabilities and improving operational efficiency.
The company focuses on operational rigor and digital optimization to drive long-term growth and enhance the guest experience.

Same-store sales fell 1.1% from the prior year, indicating challenges in maintaining the pace of sales.
GAAP EPS reported a loss of $0.36, a significant decline from last year’s EPS of $0.51.
Total revenue for the first quarter decreased by $7.3 million, primarily due to lower franchise rental and advertising fund revenues.
The company closed 41 franchised locations and eight company-owned locations, reflecting ongoing challenges in maintaining its store footprint.
Regis Corp (NASDAQ:RGS) experienced a decrease in GAAP operating income of $5.3 million compared to the same period last year, driven by lower core business revenues and increased expenses.

question: Can you talk more about the factors contributing to the decline in same-store sales and how you plan to combat them? A: Matthew Doctor, president and CEO, explained that the 1.1% decline in same-store sales was primarily due to lower traffic, which is a long-term trend. The Company aims to reverse this trend through improved marketing and operational strategies, aiming to bring profitable traffic back to franchisee salons without relying heavily on price increases.

question: What are the key initiatives being implemented to improve the guest experience in the salons? A: Matthew Doctor highlighted the introduction of brand excellence standards aimed at delivering a superior guest experience. This includes maintaining a welcoming atmosphere, consistent menu service, and strengthening the bond between stylist and guest. The initiative is currently being rolled out across the Supercuts brand, with plans to expand to other brands by mid-2025.

question: How is Regis using digital platforms to improve customer engagement and increase sales? A: The company has completed the implementation of the Zenoti sales system and the Supercuts loyalty program. These digital tools are designed to increase customer engagement by providing a seamless online check-in experience and personalized post-visit communication to increase customer frequency and loyalty.