Regis Appoints New Finance Head - Analyst Blog
December 05 2012 - 8:00AM
Zacks
Regis Corporation
(RGS) 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.
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
profitability.
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
company.
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. (ULTA), retains a Zacks #4 Rank, implying a
short-term ‘Sell’ rating on the stock.
REGIS CORP/MN (RGS): Free Stock Analysis Report
ULTA SALON COSM (ULTA): Free Stock Analysis Report
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