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MINNEAPOLIS - Regis Corporation (NASDAQ:RGS), a $52.7 million market cap company known for its presence in the haircare industry, has announced the appointment of Susan Lintonsmith as a member of its Board of Directors starting today. The company's stock has shown remarkable volatility, delivering a 154% return over the past year according to InvestingPro data. Lintonsmith brings a wealth of experience from her tenure in the food and beverage sector, having held significant positions at companies such as Pizza Hut, Coca-Cola (NYSE:KO), and Horizon Organic. Her leadership roles include serving as Chief Marketing Officer and later CEO at Quiznos, followed by a CEO position at Elements Massage within the health and wellness space.
Lintonsmith's appointment is highlighted by her extensive background in franchise and public company operations, which the Chairman of Regis Corporation, Michael Merriman, believes will provide valuable strategic insights for the company's future endeavors. Her expertise in marketing and operations comes at a crucial time, as InvestingPro data shows the company operating with a significant debt burden and short-term obligations exceeding liquid assets, with a current ratio of 0.35.
Expressing enthusiasm for her new role, Lintonsmith anticipates contributing to Regis Corporation's strategic initiatives aimed at fostering long-term growth and profitability. Her current board memberships include The ONE Group Hospitality (NASDAQ:STKS), Inc. and Checkers Drive-In Restaurants, Inc.
With an MBA in marketing and finance from Indiana University and an undergraduate degree from the University of Notre Dame, Lintonsmith resides in Lone Tree, Colorado, and is a mother to two adult children.
As of September 30, 2024, Regis Corporation operates or franchises 4,359 locations under various brands including Supercuts®, SmartStyle®, Cost Cutters®, Roosters®, and First Choice Haircutters®. The company's strategic direction, along with its financial information, can be found in the Investor Relations section of its corporate website. For deeper insights into RGS's financial health and valuation metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of the company's performance and growth potential.
This news is based on a press release statement.
In other recent news, Regis Corporation has been making strategic moves to strengthen its position in the haircare industry. The company recently acquired Alline Salon Group (ASG), its largest franchisee, for an initial consideration of $22 million, with potential for an additional $3 million in earn-out payments over the next three years. The acquisition includes 314 salons operating under the Supercuts, Cost Cutters, and Holiday Hair brands, primarily in Michigan, Ohio, and Pennsylvania. These salons reported revenues of $83 million leading up to October 2024.
Regis Corporation's first-quarter fiscal 2025 results revealed a mixed performance. The company's total revenues fell to $46.1 million, a $7.3 million decrease from the previous year, due to lower franchise rental income and advertising fund revenue. However, adjusted EBITDA improved to $7.6 million, with margins expanding to 40%. Despite a slight decrease in same-store sales, adjusted earnings per share increased to $0.93 from $0.71 the previous year.
In response to these developments, the company is focusing on operational improvements and a new digital strategy to reverse negative traffic trends and enhance franchisee profitability. Regis Corporation's strategic shifts and recent results highlight the company's commitment to future growth and profitability. Despite closing a net of 49 salons during the quarter, Regis anticipates continued adjusted EBITDA growth in fiscal 2025.
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