Revlon’s Q3 Sales Rise, But Losses Mount

Helped by double-digit gains within its Elizabeth Arden unit, Revlon's third quarter sales rose 9.2% to $521.1 million. By business unit, Revlon's sales rose 4.2% to $173.0 million. Elizabeth Arden sales increased 12.3% to $122.8 million. Portfolio sales rose 11.8% to $112.7 million and fragrances rose 6% to $112.6 million. Despite the gains, Revlon's losses rose near 33% to $53.1 million.

“Our results this quarter demonstrate that our strategy is working. The top-line growth in our brands and strong EBITDA performance are evidence of the sustained positive momentum we are seeing in our business as we continue to execute,” said Revlon President and CEO Debra Perelman. “For the second consecutive quarter, all our reporting segments increased revenue compared to the prior year, and our e-commerce segment posted double-digit growth. We are also well into the implementation phase of our Revlon Global Growth Accelerator program, which was put in place to support our long-term profitable growth.”

For the year, Revlon's sales rose 14% to $1.4 billion. Net losses declined more than 40% to $216 million. Perelman noted that the company continues to navigate global supply chain pressures, including increased prices on key ingredients and components, logistics challenges across all modes of transportation, and persistent labor shortages. Revlon is a major player in the US mass market color cosmetics market. It also has positions in AP/Deo, fragrance and hair care.

“As touched on last quarter, we are taking the appropriate steps to address these issues, including aggressively managing costs and implementing select price increases,” said Perelman. “While we expect these challenges to persist well into 2022, we are prepared to dynamically manage our business until the situation stabilizes.”

According to Perelman, Revlon is focused on sustainability. She told analysts that two-thirds of 2021 launches have “sustainable elements, either in the formulation, ingredients or packaging.”