Regis Corp. on Friday reported a net loss of $2.6 million for its fiscal fourth quarter and executives said the ongoing transformation of the hair styling and salon chain would take more time.
The loss amounted to 5 cents a share, well below the profit of 8 cents a share that analysts expected. The company's shares fell 11 percent to close at $11.70, its lowest price since 2009. Revenue fell 4 percent in the quarter to $463 million as sales at comparable stores dropped 1 percent.
On an adjusted basis, the company earned about $500,000 in the latest period, up from a loss of $4.5 million a year ago.
The company, based in Edina, has been grappling for more than a year with a restructuring of its middle management and store operations, along with the implementation of new point-of-sale and scheduling systems.
It has sold or closed about 250 of about 9,500 locations in the past year, moves that helped lower expenses.
In a statement, Chief Executive Dan Hanrahan said the company's leaders remain focused on retaining stylists to build their careers and client bases at its outlets.
"It takes time for cultural shifts to occur and is difficult to predict the pace at which our organization can change," he said in the statement. "We have significant work ahead of us, but I am proud of the foundational work already in place to help us drive long-term growth and shareholder value."