Ads for Supercuts hair salons promise, “We know how it is.” It refers to the company’s stylists, but in reality goes much deeper — to parent company Regis Corporation, whose execs “know how it is” to run a hair business.
As the global leader in hair care, Regis corrals almost 10,000 salons under a wide range of brand names — from upscale Regis Salons to lower-end Supercuts to international players Jean Louis David and Vidal Sassoon. And the Regis-run brands keep multiplying, because acquisition accounts for a big part of the Minneapolis-based retailer’s double-digit growth. It’s grown so much that Regis recently moved to the Big Board (stock symbol RGS) from Nasdaq, and reported record sales of $139 million for the month of April.
“They’ve made 250 acquisitions in the past five years,” says analyst Chris Krueger, who follows the company for broker MJSK in Minneapolis. “They’ve got it down pat. They’re quick and efficient and good at finding the right fit.”
And there’s still room for growth. The company commands only 4 percent of the U.S. market and 2 percent worldwide. In addition to growth in service revenue, Regis is pushing sales of its salon products. In Europe, where Regis is making big inroads with the Jean Louis David salons, product sales are up more than 10 percent.
“It’s a billion-dollar business that’s not talked about much,” Krueger says. “They just quietly get bigger and bigger.”