Regis Corp. (NYSE:RGS) Q3 2018 Earnings Conference Call - Final Transcript

May 01, 2018 • 10:00 am ET

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Regis Corp. (NYSE:RGS) Q3 2018 Earnings Conference Call - Final Transcript

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Q & A
Executive
Hugh E. Sawyer

on the site already, which were produced by Jamie Suarez, who leads our creative team here in Minneapolis and we've been really pleased with the results.

So initially, focused on employee training to deliver a better guest experience, focused on using social media to recruit new stylists as we are all engaged in a war for talent in the service industries throughout North America.

We want to make certain that our recruiting capabilities are best-in-class. And Jacob Kramer, who joined our company earlier this year. Shawn Moren brought him in. Jacob and Shawn are doing great work in upgrading our recruiting capabilities through the utilization of technology.

And then finally, making certain that we leverage the multiple opportunities to push content through the MLB sponsorship and to take digital advertising to the next level. Regis would never have been able to create the platforms that MLB has created. So the way I think about it, Steph, is we're essentially riding on their train. And by improving our content, we can push that content through their multiple channels of distribution.

So in summary, leveraging social media to recruit great employees, once they are here, using digital apps to better train those employees in the local salons and raising awareness of our Supercuts brand by leveraging the multiple channels of distribution for content with Supercuts. It's still early days on the revenue and pricing boards that we deployed. As you know, we have a relatively large fleet of salons, but we are encouraged by the results we're seeing. And Andrew Lacko and John Oldenkamp and our IT group are leading that project on behalf of the company. And if the results hold, we're going to continue to deploy them with a target toward our SmartStyle portfolio and our Supercuts brand to get them out into the field.

So, we're actually pretty excited by the things we're doing in technology. And all of that is an appetizer for the main event which will come after we recruit a new Chief Technology Officer, and that search is underway. And as we work with Virginia on the visioning of the future state of technology at Regis, and we -- as you know, I've said for some time now that I think technology is -- can be a transformative capability. And a capability that can differentiate our business in the years to come and to provide services to our company-owned and franchised salons that will enable us to generate growth in both traffic and a better guest experience and in rising revenues and income.

So, I'm -- we're still in the very early stages of that journey and we're doing some things that we think are commonsensical. But the main event is still to come, after we retain the Chief Technology Officer and work with Virginia on visioning. And of course, we've got -- Andrew and the team have done a great job in getting the credit facility in place so that we have the bandwidth