) has recently appointed Steven M. Spiegel as the Chief Financial
Officer (CFO) and Executive Vice President of the company with
immediate effect. Spiegel replaced Brent Moen who had resigned
from the post of CFO. However, Brent Moen will remain with Regis
till January 4, 2013, to ensure a seamless transition.
REGIS CORP/MN (RGS): Free Stock Analysis
ULTA SALON COSM (ULTA): Free Stock Analysis
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Spiegel's career graph boasts several strategic roles.
Previously, he had served as the Vice President Finance and
Corporate Controller at Unilever Group (formerly Alberto Culver)
from 2010 to May 2012. Prior to that, he acted as the Vice
President of Commercial Finance - Americas, Asia-Pacific and
Africa, at Alberto Culver from 2007.
Earlier, he held the same posts at U.S. Branded Beauty of Alberto
Culver from 2005 to 2007. Considering his vast know-how about
business development, public accounting as well as his prior
experience with leading retailers, we believe that he will bring
on board key expertise to steer Regis' to growth and
Edina-based Regis' present scenario is not very encouraging as
the company has been struggling for quite some time with a slow
traffic count, which remains a drag on its same-store sales.
However, traffic under its Smart Style segment was positive for
the first time in several quarters in the third quarter of 2012,
supported by a back-to-school coupon event. We believe that
despite this positive signal, Regis still has a long way to go to
wipe out the previous underperformance.
Frequent changes in top management further remain a cause of
concern for Regis. In July this year, Regis appointed a permanent
Chief Executive Officer (CEO) after a seven-month long extensive
search. Meanwhile, Eric A. Bakken acted as the interim CEO of the
In January this year, the company had to undergo another
managerial change owing to the termination of the Chief Operating
Officer (COO) David Bortnem. In such a scenario, the role of a
new team will be vital as the company is currently struggling to
revitalize the brand. An element of uncertainty will linger till
we find any definite signs of progress.
Regis, which competes with
Ulta Salon, Cosmetics & Fragrance Inc.
), retains a Zacks #4 Rank, implying a short-term 'Sell' rating
on the stock.