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MINNEAPOLIS - Regis Corporation (NASDAQ:RGS) announced Monday that CEO Matthew Doctor will step down effective June 30, 2025, after four and a half years with the haircare company. The announcement comes as the company’s stock has shown significant volatility, with a remarkable 318% return over the past year despite falling 20% in the last six months. Jim Lain, current Executive Vice President of Brand Operations for Supercuts and Cost Cutters, has been appointed interim CEO while the board conducts a search for a permanent successor.
Doctor will remain in a support role until September 1 to facilitate the transition. The company has formed a succession planning committee led by director Susan Lintonsmith and engaged an executive search firm to identify candidates.
Regis also reported preliminary same-store sales growth of 3.0% for Supercuts and 1.3% on a consolidated basis for the first two months of its fiscal fourth quarter compared to the same period last year. Month-to-date same-store sales through June 15 were also positive, according to the company’s press release statement. The company maintains a healthy gross profit margin of 39% and generated $11.3 million in free cash flow over the last twelve months. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculations.
"Matt initially joined the company in a strategic role and quickly proved to be a transformative leader," said Mike Merriman, Chairman of the Board. "He has been instrumental in shaping the company’s direction, stabilizing operations, restoring profitability and strengthening our financial position."
Interim CEO Jim Lain brings over 30 years of operations leadership experience, having joined Regis in 2013. His previous roles include Vice President of Operations for Gap Specialty Stores and management positions at Dick’s Sporting Goods and Target.
Regis Corporation operates 4,087 locations as of March 31, 2025, under brands including Supercuts, SmartStyle, Cost Cutters, Roosters, and First Choice Haircutters.
The company noted that quarter-to-date operating expenses have remained consistent with the third quarter of fiscal 2025.
In other recent news, Regis Corporation reported a 15.9% increase in revenue for the third quarter of fiscal year 2025, reaching $57 million. The company’s operating income rose by 22% to $5 million, demonstrating strong financial performance despite a slight decline in same-store sales. Regis also completed the acquisition of approximately 300 salons from Align Salon Group, which contributed to the company’s revenue growth. The company closed 49 net salons during the quarter, focusing on optimizing its salon portfolio. Regis plans to prioritize debt reduction and strategic capital allocation, with adjusted general and administrative expenses projected to be around $40.5 million for FY2025. The company expects positive cash generation for the rest of the fiscal year, emphasizing its commitment to improving profitability. Regis remains focused on enhancing operational efficiency and brand strength to navigate the evolving market environment.
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