RE/MAX announced changes to its executive team after revenue declined for the sixth consecutive quarter through the end of 2023. Amy Lessinger will succeed Bailey as president.
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RE/MAX President and CEO Nick Bailey has been replaced as head of franchisees, the company announced Thursday as it reported its sixth consecutive quarter of revenue decline.
Bailey served as president for nearly three years, two of which he also served as CEO of one of the largest real estate franchises in the United States. Earlier in his career, he held various positions at RE/MAX World Holdings.
RE/MAX announced that Amy Lessinger will succeed Bailey as president and will report directly to Erik Carlson, CEO of RE/MAX Holdings.
The top executive changes come on the same day RE/MAX announced that fourth-quarter 2023 revenue fell 5.2% from a year earlier. RE/MAX earned $76.6 million in the quarter and had a full-year net loss of $69 million.
The company’s revenue has declined throughout the year as low inventory, high interest rates and high home prices have slowed home sales in the industry.
RE/MAX’s total revenue this year fell 7.8% from 2022 to $325.7 million, the company said.
The franchisee’s revenue peaked in the second quarter of 2022 and then continued to decline.
At the same time, the company reported that operating expenses for the quarter increased 18.5% from the same period last year to $86.3 million.
RE/MAX’s total number of agents in the United States fell 6.1% last year, and the number of agents in those countries continued to decline earlier this year, the company said. The company said it currently has 143,497 agents worldwide.
“While the housing market remains very difficult, our continued focus on effective cost management drove better-than-expected margins in our fourth quarter,” Carlson said. “While the macro environment is beyond our control, Our expense discipline allows us to remain flexible and able to pursue and capture those growth opportunities where we believe we have the greatest potential.”
Carlson was hired in November, less than two weeks after the company reported another decline in quarterly results. He succeeds Steve Joyce, who served as interim CEO following the resignation of Adam Contos in March 2022.
“Looking ahead to 2024, we believe there are many reasons to be optimistic – encouraging interest rate trends, improving customer sentiment and continued pent-up demand point to a gradual improvement in housing market performance,” Carlson said.
In addition to Lessinger’s promotion to president of RE/MAX, the company announced two other executive promotions Thursday.
Abby Lee is promoted to executive vice president of marketing, communications and events; Susie Winders is promoted to executive vice president and general counsel.
It’s unclear what caused Bailey to walk out of the home. The company’s announcement contained little information about his exit other than to say he was leaving the company.
RE/MAX co-founder and company chairman Dave Liniger congratulated the new executive on his promotion but did not mention Bailey.
Lessinger, Lee and Wenders “are all exceptional leaders who have played a meaningful role in our company’s success by relentlessly promoting our strong brand and supporting our highly effective network,” Liniger said .
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