Skip to main content
Updated:
Original:

Regis struggles as pandemic, rise of work-from-home keeps customers away

The salon chain posted a significant loss in the second quarter.
Author:

While COVID-19 restrictions have been loosened since the lockdowns of March, many Americans haven't returned to their old routines.

The latest sign that the pandemic has led to a major change in consumer habits can be found in the results posted by St. Louis Park-based Regis Corp. on Monday.

The hair salon chain announced its 2nd quarter revenue had fallen 76%, with the company posting a loss of $73.6 million between April and June.

In a statement, CEO Hugh Sawyer said that customers "have not yet returned to historical levels of activity" seen prior to the pandemic, with the company banking on advances in COVID-19 treatment and a vaccine to aid its return to success.

"We remain hopeful that with advances in the treatment of COVID-19 and the potential introduction of new vaccines, customers will return to more typical grooming habits," he said.

Hair salons have mostly been allowed to reopen across the country, albeit with many states implementing capacity restrictions – with Minnesota for example only allowing them to operate at 50% capacity, with reservations required.

Regis says it has responded "vigorously" to the pandemic by introducing new safety protocols at its company- and franchise-owned locations, while it has continued to invest in its merchandise lines.

But it's not just concern over COVID-19 that's keeping people away from salons, but also the rise in working-from-home.

"Most offices and headquarters, headquarters buildings are still closed around the nation," Sawyer said during Monday's earnings call. "And I think people are zooming around in zoom pits to be a little more casual and people are aren't quite as well-groomed as they were when they went to an office."

"But I don't think it's a permanent condition," he continued, adding: "If we get better treatments and if testing improves and God willing, we get this vaccine, I really do believe people ... are anxious to return to a more normal life.

"And I think companies are ready to reopen their headquarters. And when that happens, I think people record and go back to their normal grooming patterns and get the haircut and colored and all that kind of stuff."

Weather update from Novak Weather

Next Up

Pixabay - school - classroom

St. Paul schools add 2 days to winter break due to pandemic stress

The added days off are meant to acknowledge the stress the pandemic has caused.

Fardoussa Abdillahi

Charges: St. Cloud mother killed baby, placed him in dumpster

The 4-month-old baby was found by officers on Sunday morning.

ambulance

1 dead in crash at Lake Street intersection in south Minneapolis

There have been 465 deaths on Minnesota roads this year, according to the state's traffic division.

robbery

St. Paul restaurateur's businesses burglarized a 6th time

The owner of The Gnome and Hope Breakfast Bar is asking politicians to help St. Paul business owners.

North Memorial Air Care

Teen suffers life-threatening injuries in head-on crash in southern MN

The 18-year-old was airlifted to a Mayo Clinic hospital in Rochester.

foo fighters grohl mr rossi wikimedia

Foo Fighters abruptly cancel Gophers stadium show hours after announcing it

The band is looking for a new venue because of a disagreement over COVID protocols.

lush

LUSH in Minneapolis to reopen under new ownership in December

FOX 9's Jason Matheson and two popular performers are among the new owners of the revived bar and restaurant.

unsplash roller blade close

Lace up: Indoor skating returns to US Bank Stadium this winter

The venue announced 13 Winter Warm-Up dates for both skaters and runners.

covid

More than 1,500 people are hospitalized with COVID-19 in MN

Minnesota's hospital systems continue to be under tremendous strain.

state patrol

3 killed in trio of crashes in Minnesota on Monday

The crashes happened in St. Louis, Winona and Carver counties.

2560px-Foo_Fighters_-_Southside_Festival_2019_4184_-_1

Foo Fighters reveal 2022 Twin Cities tour stop

The show will require proof of COVID vaccination or a negative test.

Related

1024px-Regis_Salon_Briarwood

Edina's Regis to sell remaining 3,108 company-owned hair salons

The haircare company will go to a fully franchised portfolio.

1024px-Regis_Salon_Briarwood

Regis Corp. announces 290 job cuts across U.S., Canada

The Minneapolis-based company has been making major changes to its business model.

Regis is closing SmartStyle salons in 600 Walmarts

The Edina-based salon chain made the announcement Monday morning.

Target store

Target announces record results as it cashes in from the pandemic

Walmart had posted similarly huge results earlier this week.

Target store

Target sees huge rise in sales thanks to coronavirus, but profits hit

The retail giant saw big jumps in grocery and online sales, but clothing plummeted.

Ext_17

Despite pandemic, Life Time pushes ahead to open downtown co-working space

It was originally planned to open in the fall, but it has been pushed back to April.

russia-95311_1280

Coronavirus: Gov. Walz loosens restrictions to allow 100,000 back to work

The latest executive order has followed consultation with businesses and labor unions.

US Bank

U.S. Bank to review firing of 2 workers who broke rules to help customer

The Minneapolis-based bank was the subject of a scathing column in the New York Times.