07.17.08
Beauty business is looking good at Revlon, Inc. The company reported favorable preliminary results for the second quarter ending June 30, 2008—mostly due to innovative new launches.
Net sales increased 8% to $375 million. In the U.S., net sales increased 6% to approximately $215 million. According to the company, the primary driver of the second quarter net sales growth was higher shipments of Revlon color cosmetics, largely due to 2008 new product launches, including initial shipments of our more extensive second half 2008 new product lineup.
In the company’s international operations, net sales in the second quarter of 2008 increased 10% to $160 million. Each of the company’s international regions—namely, Asia Pacific, Europe and Latin America—experienced net sales growth and margin expansion.
Operating income soared from $16.9 million to $60 million. Net income was $20 million, compared to a net loss of $11.3 million. According to the company, the boost was primarily driven by higher net sales and the non-recurrence of brand support in the second quarter of 2007 related to the launch of Revlon Colorist hair color.
In terms of U.S. mass retail share performance, according to ACNielsen, the color cosmetics category grew 4.4 percentage points in the second quarter of 2008 compared to the same period last year. U.S. mass retail share results for the Revlon and Almay color cosmetics brands, and for women’s hair color, anti-perspirants and deodorants.
The Revlon brand continued to maintain an approximate 13% dollar share in the second quarter of 2008, in line with its quarterly performance since the fourth quarter of 2006.
In the U.S., Revlon brand mass retail share in June 2008 was 14%—up 0.5 points compared to June 2007 and up 1.5 points compared to May 2008 reflecting new product performance, effective brand communication and effective brand support.
As of June 2008, products launched in the first half of 2008 were substantially in full distribution. Two products from this launch—Revlon Custom Creations foundation and Revlon ColorStay Mineral foundation—continue to be ranked in the ACNielsen top 10 new products (by retail dollar sales) in the latest available data.
In the second quarter 2008, Almay continued to maintain an approximate 6% dollar share, in line with its quarterly performance since the fourth quarter of 2006. Almay’s positive performance in the face category was driven primarily by Almay TLC Foundation and Almay Smart Shade Blush and Bronzer, which were launched in the first half of 2008 and second half of 2007, respectively.
Commenting on the second quarter, Revlon President and Chief Executive Officer David Kennedy said, “Our strong preliminary results in the second quarter continue to validate our strategy. We continue to focus on the key drivers, including: innovative, high-quality, consumer-preferred new products; effective, integrated brand communication; competitive levels of advertising and promotion; and superb execution with our retail partners, which build our brands, particularly the Revlon brand, and generate sustainable, profitable sales growth. We also remain focused on controlling our costs and driving efficiencies throughout our organization, which continue to positively impact our margins and cash flows.”
Net sales increased 8% to $375 million. In the U.S., net sales increased 6% to approximately $215 million. According to the company, the primary driver of the second quarter net sales growth was higher shipments of Revlon color cosmetics, largely due to 2008 new product launches, including initial shipments of our more extensive second half 2008 new product lineup.
In the company’s international operations, net sales in the second quarter of 2008 increased 10% to $160 million. Each of the company’s international regions—namely, Asia Pacific, Europe and Latin America—experienced net sales growth and margin expansion.
Operating income soared from $16.9 million to $60 million. Net income was $20 million, compared to a net loss of $11.3 million. According to the company, the boost was primarily driven by higher net sales and the non-recurrence of brand support in the second quarter of 2007 related to the launch of Revlon Colorist hair color.
In terms of U.S. mass retail share performance, according to ACNielsen, the color cosmetics category grew 4.4 percentage points in the second quarter of 2008 compared to the same period last year. U.S. mass retail share results for the Revlon and Almay color cosmetics brands, and for women’s hair color, anti-perspirants and deodorants.
The Revlon brand continued to maintain an approximate 13% dollar share in the second quarter of 2008, in line with its quarterly performance since the fourth quarter of 2006.
In the U.S., Revlon brand mass retail share in June 2008 was 14%—up 0.5 points compared to June 2007 and up 1.5 points compared to May 2008 reflecting new product performance, effective brand communication and effective brand support.
As of June 2008, products launched in the first half of 2008 were substantially in full distribution. Two products from this launch—Revlon Custom Creations foundation and Revlon ColorStay Mineral foundation—continue to be ranked in the ACNielsen top 10 new products (by retail dollar sales) in the latest available data.
In the second quarter 2008, Almay continued to maintain an approximate 6% dollar share, in line with its quarterly performance since the fourth quarter of 2006. Almay’s positive performance in the face category was driven primarily by Almay TLC Foundation and Almay Smart Shade Blush and Bronzer, which were launched in the first half of 2008 and second half of 2007, respectively.
Commenting on the second quarter, Revlon President and Chief Executive Officer David Kennedy said, “Our strong preliminary results in the second quarter continue to validate our strategy. We continue to focus on the key drivers, including: innovative, high-quality, consumer-preferred new products; effective, integrated brand communication; competitive levels of advertising and promotion; and superb execution with our retail partners, which build our brands, particularly the Revlon brand, and generate sustainable, profitable sales growth. We also remain focused on controlling our costs and driving efficiencies throughout our organization, which continue to positively impact our margins and cash flows.”