Revlon Reports ‘Material Weakness’

Today, Revlon's shares fell sharply after warning that its delayed 10-K filing may reveal a “material weakness” in its financial reporting controls for year-end. It also reported a tough quarter, where sales slipped. Executives said the problem was caused by an issue with its SAP ERP software. It estimated the cost to fix it at about $54 million. The company said it intends to file its 10-K no later than March 29 and doesn’t expect that it will result in any changes to its financial results. 


In Q4, sales dropped 5.7%, driven in part by the expiration of brand licenses in Revlon’s fragrance business, but offset somewhat by strength in Elizabeth Arden and China, according to Revlon.


Last Spring, Revlon's revolving CEO door opened for Debra Perelman, the chairman's daughter, who hasn't been able to stop the bleeding at the iconic beauty company.