• For the first quarter of 2013, Regis Corporation reported that net sales fell 4.9% to $505.4 million. Same store sales declined 3.1%, while same store transaction counts for salon businesses declined 2.3%.
“First quarter results are indicative of the necessary re-engineering that needs to take place and this change is just beginning,” said Dan Hanrahan, president and chief executive officer. “Service margins declined due to an increase in salon labor costs. In the past, Regis has consistently reduced stylist hours to offset declining customer counts. Today, our entire organization is focused on staffing and optimizing our salon schedules. Sales volumes cannot improve if we continue to reduce stylist hours in our salons.”
Hanrahan concluded, “We are committed to improving the salon experience for our guests, hiring and retaining the best stylists, continuing our efforts to simplify our operating model and effectively leveraging our scale. There is a significant opportunity to improve our financial performance.”