RE/MAX CEO Nick Bailey Exits As Firm Income Falls Once more In This autumn
RE/MAX introduced it was making adjustments to its government group after income fell for a sixth consecutive quarter to finish 2023. Amy Lessinger will succeed Bailey as president.
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RE/MAX President and CEO Nick Bailey has been changed as head of the franchisor, the corporate introduced whereas unveiling that its income fell for a sixth-consecutive quarter on Thursday.
Bailey had served as president for almost three years, two of which he was additionally CEO of one of many nation’s largest actual property franchisors. He held a number of positions at RE/MAX World Holdings earlier in his profession.
RE/MAX introduced Amy Lessinger will succeed Bailey as president and can report on to RE/MAX Holdings CEO Erik Carlson.
The chief change got here on the identical day RE/MAX introduced its income fell 5.2 % within the fourth quarter of 2023, in comparison with the identical time a 12 months earlier than. RE/MAX earned $76.6 million within the quarter and reported a web lack of $69 million for the 12 months.
The corporate’s income was down all 12 months because the trade slogged by slower residence gross sales brought on by low stock, excessive rates of interest and excessive residence costs.
RE/MAX’s complete income for the 12 months fell 7.8 % from 2022, to $325.7 million, the corporate mentioned.
The franchisor’s income peaked within the second quarter of 2022 earlier than starting its ongoing slide.
In the meantime, the corporate reported its working bills elevated 18.5 % within the quarter in comparison with a 12 months earlier, to $86.3 million.
RE/MAX’s complete agent rely fell 6.1 % in america final 12 months and has continued falling in these international locations at the beginning of this 12 months, the corporate mentioned. Worldwide, it now boasts 143,497 brokers, the corporate mentioned.
“We generated better-than-expected margins within the fourth quarter, pushed by our ongoing concentrate on efficient price administration amidst what continues to be a really troublesome housing market,” Carlson mentioned. “Regardless of macro situations past our management, our expense self-discipline has allowed us to stay nimble, capable of pursue and seize these development alternatives that we determine as having the best potential.”
Carlson was employed in November, lower than two weeks after the corporate reported another down quarter. He changed Steve Joyce, who served as interim CEO after Adam Contos resigned in March 2022.
“Waiting for 2024, we imagine there are various causes to be optimistic — encouraging rate of interest traits, enhancing buyer sentiment, and ongoing pent-up demand bode nicely for progressively higher housing market efficiency transferring ahead,” Carlson mentioned.
Along with Lessinger’s promotion to RE/MAX president, the corporate introduced two different government promotions on Thursday.
Abby Lee was promoted to government vice chairman of selling, communications and occasions; and Susie Winders was promoted to government vice chairman, basic counsel.
It’s not clear what led Bailey out the door. The corporate’s announcement included little or no details about his exit, aside from to say he was leaving the corporate.
Dave Liniger, RE/MAX co-founder and chairman of the corporate’s board, congratulated the brand new executives on their promotions and didn’t point out Bailey.
Lessinger, Lee and Winders “are distinctive leaders who’ve every performed a significant function in our Firm’s success by tirelessly selling our robust manufacturers and supporting our extremely productive networks,” Liniger mentioned.
