RGS
#Yes, it is.
It is driven by weaker traffic.
As I said in my scripted comments, mall traffic has been challenging.
We still have the stores since we have to operate them, so we're really focused on what we can control.
We have been closing mall stores at an increased pace, and working hard when we do that to save stylists so that we can move stylists from one mall salon into potentially another mall salon, or potentially even into a salon that isn't in the mall.
Because when we do that, we can bring guests along with that stylist and we can help another salon be successful.
But it is ---+ a big challenge for us is traffic right now.
Yes, good question.
So a few things.
No.
1, when we started here we said that our focus was going to be on making all of our salons successful.
And I think that in a large portion of them, we see real success.
I would say three quarters of them were positive cash flow, but we've got about a quarter of them that are not positive cash flow.
And we've seen over that time, the continued success of the franchise business.
And the real interest, in 2013, when we started to sell much more aggressively the Supercuts brand, the interest in our brand.
In my scripted remarks, I talked about how fast we were growing there.
So as we looked at all those things together, we said, there's a real opportunity to accelerate this.
We've sold right around 200 of them.
But at that time, when we sold 200 of them, we weren't contemplating potentially selling SmartStyle or potentially selling some of the Supercuts.
It was more around ---+ we have sold some of the Supercuts, but very few, and no SmartStyles.
When we started to look at it that way, we saw a real opportunity to accelerate the business.
So it was kind of all those things coming together, <UNK>, that got us to the point that said, we should now take this business that is very profitable, growing very nicely, and accelerate that growth because that'll be good for Regis as a whole.
Thank you.
Thanks, Lisa.
Thanks, everybody, for joining us.
If there's specific questions, I know Mark and Paul will be looking forward to talking to you off line.
We'll look forward to talking to you at the next call.
