Real Estate

RE/MAX CEO Nick Bailey resigned after the company’s revenue slumped again in Q4

RE/MAX announced that it is making changes to its executive team through the end of 2023 following a sixth straight quarter of revenue declines. Amy Lessinger will replace Bailey as president.

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RE/MAX President and CEO Nick Bailey has been replaced as head of the franchisor, the company announced Thursday after its sixth straight quarter of revenue declines.

Bailey served as president for nearly three years, two of which he was CEO of one of the nation’s largest real estate franchisors. He held several positions at RE/MAX World Holdings earlier in his career.

RE/MAX announced that Amy Lessinger will replace Bailey as president and report directly to Eric Carlson, CEO of RE/MAX Holdings.

The executive change came the same day that RE/MAX announced that its revenue fell 5.2 percent in the fourth quarter of 2023, compared with the same time a year ago. RE/MAX earned $76.6 million in the quarter and reported a net loss of $69 million for the year.

The company’s earnings were down all year as the industry slowed due to low inventory, high interest rates and low home sales due to high home prices.

RE/MAX’s total revenue for the year 2022 fell 7.8 percent to $325.7 million, the company said.

The franchisor’s revenue peaked in the second quarter of 2022 before beginning its ongoing slide.

Meanwhile, the company reported that its operating expenses rose 18.5 percent to $86.3 million in the quarter from a year earlier.

RE/MAX’s total agent count fell 6.1 percent in the United States last year and continued to decline in those countries earlier this year, the company said. Worldwide, it now has 143,497 agents, the company said.

“We generated better-than-expected margins in the fourth quarter, driven by our continued focus on effective cost management amid a very challenging housing market,” Carlson said. “Despite macro conditions beyond our control, our spending discipline has allowed us to remain nimble, to capture and capitalize on growth opportunities that we identify as our greatest potential. “

Carlson was hired in November, less than two weeks after the company reported another down quarter. He replaces Steve Joyce, who served as interim CEO following the resignation of Adam Kontes in March 2022.

Carlson said, “Looking ahead to 2024, we believe there are many reasons for optimism – encouraging interest rate trends, improving customer sentiment, and continued rising demand will drive the gradual improvement of the housing market. Good point going forward,” Carlson said.

In addition to Lessinger’s promotion to RE/MAX president, the company announced two other executive promotions Thursday.

Abby Lee was promoted to executive vice president of marketing, communications and events. And Susie Wonders was promoted to executive vice president, general counsel.

It’s unclear what drove Bailey out the door. The company’s announcement contained little information about his exit, other than that he was leaving the company.

Dave Lanegar, RE/MAX co-founder and chairman of the company’s board, congratulated the new executives on their promotions and did not mention Bailey.

Lessinger, Lee and Winders are “exceptional leaders who have contributed meaningfully to our company’s success by tirelessly promoting our strong brands and supporting our highly productive networks”.

Email Taylor Anderson.

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