Management of Regis Corp. expressed clear disappointment with the hair-care chain's third-quarter loss Wednesday and outlined a cost-cutting and customer engagement strategy designed to turn the company around during its next fiscal year, beginning July 1.
"Status quo is not an option," said President Randy Pearce in a conference call with analysts after reporting that revenue was lower than the same period a year ago.
The $25.3 million loss was the largest quarterly loss for the Edina-based chain since the recession-racked fourth quarter of 2008 when consumers started cutting back.
"We are laser-focused on correcting it," said Pearce, who was named president 11 weeks ago. "If I had a script to write for my first conference call, this wouldn't be it."
He said the goal is to increase customer traffic in its salons: "It's that simple."
The chain, which includes between 4,000 and 5,000 franchises among its 12,700 locations, will implement programs to increase communications with clients, using e-mail, for instance, to remind them of appointments. The chain will also consider customer service attributes when hiring stylists and create an incentive program for stylists.
The company also will trim $20 million to $30 million in operating expenses.
Price increases for haircuts, stylings and colorings would be "judicious," said Pierce, who said the firm is still mindful of the difficult economy and weak consumer confidence.
