Regis CFO Steps Down; Unilever Exec. Named Successor
Regis Corporation Chief Financial Officer (CFO) Brent Moen will step down and be replaced next week by a former executive from the Unilever Group, Regis said Thursday.
Regis, an Edina-based hair salon operator, said that Steven Spiegel will assume the roles of executive vice president and CFO on Monday. Spiegel most recently served as vice president of finance and corporate controller at Unilever, a global company whose 400-plus brands include Lipton, Dove, and Axe. Prior to that, Spiegel held senior finance positions at Alberto Culver, which Unilever acquired in 2011.
“Steven will be a tremendous asset to our leadership team,” Regis CEO Dan Hanrahan said in a statement. “I have the highest confidence that his extensive financial knowledge and experience will deliver significant contributions toward our objectives of improving the salon experience for our guests, simplifying our operating model, effectively leveraging our scale, and enhancing value for our shareholders.”
Moen joined Regis in 2000 as director of finance after working for PricewaterhouseCoopers and Carlson, among other companies. At Regis, he was named vice president of finance in 2002 and became corporate controller in 2006. He replaced Randy Pearce as CFO in 2011, when Pearce was named president of the company.
Moen will remain employed by Regis through January 4 “to facilitate a smooth and orderly transition,” the company said. Regis declined to provide further comment on the reason for Moen's exit.
Moen’s departure follows a series of substantial leadership changes at Regis. Former CEO Paul Finkelstein stepped down in February; then-President Pearce was expected to take over, but he announced in January that he would instead leave the company in June. As a result, interim Chief Operating Officer Eric Bakken served as interim CEO during the search for a permanent chief executive.
Hanrahan, the former CEO and president of Celebrity Cruises, took the reins in August and has since been attempting to turn the company around.
Regis has struggled in recent years and cut costs. Last year, it went through a contentious proxy battle after investor Starboard Value LP, a New York-based hedge fund, said the company’s cost-cutting plans were insufficient. The investor ultimately won three board seats.
Regis, which is among Minnesota’s 25 largest public companies based on revenue, owns and franchises salons under brands including Supercuts, Sassoon Salon, Regis Salons, MasterCuts, SmartStyle, Cost Cutters, Cool Cuts 4 Kids, and Hair Club for Men and Women. It owned or franchised about 10,000 locations as of September 30.
For its first fiscal quarter, which ended September 30, Regis reported earnings of $28.5 million, or 45 cents a share—up dramatically from $8.3 million, or 15 cents a share, during the same period a year ago.
The higher profit, however, was driven largely by the sale of Regis’ stake in European hair salon company Provalliance. Net sales during the quarter slid nearly 5 percent to $505.4 million, and same-store sales declined more than 3 percent.
During the previous quarter, which ended June 30, the company reported a loss of $63.6 million coupled with a 4 percent decrease in revenue, which totaled $568.2 million. For its most recent fiscal year, Regis reported a net loss of $114.1 million on revenue of $2.3 billion.