07.10.06
Revlon said it expects adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to be a loss of about $30 million for the second quarter. According to the company, this outlook reflects a negative impact of $40 million from returns related to the launch of its Vital Radiance color cosmetics brand, which saw roughly $20 million in returns related to space reductions with certain large format customers, where performance was also well below expectations, as well as anticipated modifications to the brand offering.
Revlon expects to post an operating loss of $55 million for the second quarter, and a net loss of about $95 million for the period. It sees net sales for the quarter coming in about even with its year-ago equivalent total of $318.3 million. The current average estimate of two analysts polled by Thomson First Call is for revenue of $334.3 million in the June period. For the year, Revlon sees adjusted EBITDA "about even with or somewhat below" its $167 million total for 2005. The 2006 outlook includes the negative impact of Vital Radiance and a $10 million restructuring charge. Revlon also said its re-staging of the Almay brand is tracking behind expectations. The company didn't provide a specific outlook for 2007 but said its longer-term net sales growth goal is in the mid-single-digit range.