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    Breaking News

    Declines in North America Impact Revlon

    Garcia remains "committed to our long-term strategy."

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    05.05.17
    Revlon, Inc. has announced its results for the quarter ended March 31, 2017. Reported net sales were $594.9 million, an increase of 35.3% compared to the prior-year period. On a pro forma basis, net sales decreased by 5.8%, or 5.3% XFX, compared to the prior-year period.


    According to Revlon, company’s performance for the first quarter of 2017 was adversely impacted by net sales declines in North America across all segments that could not be offset by the company’s robust international net sales growth. The decrease in net sales and lower overhead absorption also unfavorably impacted the Company’s gross margin.

    Commenting on today’s announcement, Revlon president and CEO Fabian Garcia said, “While we are disappointed with our US results, our brands continue to achieve strong international net sales growth across all segments and despite the US retail environment, our iconic beauty brands have demonstrated resilience and have maintained market share in the U.S.”

    Garcia added, “We remain committed to our long-term strategy to restore brand growth in the U.S. by enhancing our brands’ relevance with differentiated innovation, elevating in-store and online experiences and digital-first engagements, and building our presence in fast growing channels, as well as accelerating our international expansion, with a focus on Asia and Latin America.”

    Garcia said that in spite of the retail challenges the company is facing in the US, “I am confident that we have the strategy, leadership team and capabilities in place to deliver our long-term growth ambitions. We are now beginning to realize the acquisition synergies at a faster pace, and we expect to increase sequentially throughout the year, providing improvements in our operating P&L and fueling incremental brand investment. As a combined company we are also benefiting from our diverse brand portfolio, expanded global footprint and deep commercial expertise across mass, prestige and professional channels.”

    Consumer segment net sales in the first quarter of 2017 were $290.4 million, a
the prior-year period, largely driven by continuing softness in consumption
channel in North America, which adversely impacted net sales of Revlon color cosmetics, Almay color cosmetics, SinfulColors color cosmetics and Mitchum anti-perspirant deodorants. These declines were partially offset by the launch of CND Vinylux nail products in select mass-retailers. Both SinfulColors and Mitchum experienced declines as a result of cycling against new product launches in the first quarter of 2016, without a comparable launch in the first quarter of 2017. The decline in net sales of Revlon color cosmetics in North America was offset by the brand’s strong sales growth internationally.

    Elizabeth Arden net sales in the first quarter of 2017 were $192.0 million. On a pro forma basis, Elizabeth Arden net sales increased slightly, as higher net sales of Elizabeth Arden branded skin care and fragrances businesses were mostly offset by the non-renewal of certain celebrity fragrance licenses.

    Professional segment net sales of $108.0 million in the first quarter of 2017 decreased by 6.2%, or 4.9% XFX, compared to the first quarter of 2016, driven by continued net sales declines of CND nail products and lower net sales of American Crew men’s grooming products, as a result of the timing of shipments. These net sales declines were partially offset by higher net sales of Revlon Professional hair products, including the Be Fabulous hair care range and Revlonissimo professional hair color. 
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