) recently appointed Eric A. Bakken, aged 45, as the interim chief
executive officer (CEO), effective June 30, 2012. The management
churn comes in the wake of the resignation of Randy L. Pearce from
the position of president.
Pearce, who divulged his intent to retire in January 2012, was
supposed to become the CEO of the company in February with the
retirement of Paul Finkelstein. Pearce served Regis for 27
In his provisional tenure as CEO, Eric A. Bakken will continue
to work as executive vice president, general counsel and business
development as well as interim chief operating officer. Meanwhile,
Regis' lookout for a competent and permanent CEO will be
Bakken's association with Regis dates back to 1994 when he used
to act as a lawyer to the company. Since then, Bakken held an array
of leadership positions. Since 2010, he was serving as executive
vice president of the company. Considering Bakken's age-old
alliance with the company, we believe, his style of operation will
be in sync with Regis' psyche.
The Edina-based Regis has been struggling for quite sometime
with a slow traffic count, which remains a drag on its same-store
sales. Apart from the dismal performance in one of key performance
matrices, management witnessed another managerial change in January
with the termination of chief operating officer David Bortnem.
Frequent changes in top management remain a cause of concern for
Regis. Hence, the role of a new team will be vital as the company
is currently struggling to turn around its comps. An element of
uncertainty will linger till a permanent CEO is appointed.
Regis which competes with
Ulta Salon, Cosmetics & Fragrance Inc.
) has a Zacks #3 Rank, implying a short-term Hold rating on the
stock. Our long-term recommendation for the stock remains
REGIS CORP/MN (RGS): Free Stock Analysis Report
ULTA SALON COSM (ULTA): Free Stock Analysis
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